should the U.S increase the amount of credit available to consumer?

Question

debate ?

Answer 1

1) The US government has recently imposed significant restraints on credit borrowing. They significantly and artificially increased interest rates. Interest rates in the US are the highest by a good margin among the 8 most developed countries. But because people still borrow, these higher rates only mean that more money goes to creditors and less to producers of goods and services.

2) If consumer credit were greatly restricted, the economy would collapse. We are a Consumerism Nation. Debt fuels this.

3) "The debtor is the slave of the creditor." The people with the most political power in the US - - the very wealthy - - like the fact that most people in the US are their slave-debtors. They control the political process and have no incentive to change what the present excess of credit.

4) Credit cards are addictive. The amount of credit will naturally increase, just as the market for drugs maintains itself despite expensive efforts to eliminate it.

Answer 2

Because credit card debt is at an all time high- 9k is the average owed by families. our savings rate is at or below the savings rate of the Depression. It hasn't been this low since then. Look at the commecials on tv. They advertise to kids in college. They certainly do not need more credit given to them. My wife graduated with her masters.She has been working in her profession for last five years. She used loans and credit cards during her six years at college. She still owes 50k in student loans. So NO, we should not be extended any more credit than we already have been. Then again the government does not give it out. We choose, by our spending and paying of bills, how much credit is given to us.

Answer 3

it is greater severe than a bandaid. it is greater like an emergency field dressing. the purpose of those is to sluggish the bleeding to a level the place the affected person has a greater useful probability of warding off loss of lifestyles from marvel. at present day, a great number of the indoors maximum monetary gadget could cave in thoroughly with out that greater spending.by borrowing money now and spending money now, we shop the monetary gadget from grinding to a halt. It will become a severe long term danger provided that we don't trim lower back that spending and improve taxes to pay the debt down as quickly as the indoors maximum sector recovers.

Answer 4

Most of us already have more credit available than we can possibly use responsibly. Why should anyone make MORE available.