NC Iowa | Tim in WI - 2/24/2015 05:42 I think your answer is pretty simple. Debt is incurred when someone wants something that they can't afford.
I don't think the word "afford" is the correct word.
Are you saying someone taking out a line of credit to put in a crop can't afford to farm?
Everyone has heard good debt and bad debt. They should never be talked about at the same time in generalities.
I am in debt because I believe I can increase my net-worth faster, then if I used no borrowed money. I would think 95% of farmers think the same.
People that are in debt to pay everyday costs and living expenses, are not borrowing to increase net worth. They are in survival mode and either have hope that something will turn around, or plan to fail.
The last sentence is the the real problem, and includes most all gov't debt and many middle to low class families. |
Next economic question. WHY is debt so prevalent throughout the world today?
