The Credit Society
It seems that right now we live in a credit society, one that moves not on capital as much as credit. Borrowing.
About a month ago, the New York Times examined how the use of credit has taken off dramatically in the United States since 1990. While the number of people holding charge cards grew about 75 percent— from 82 million in 1990 to 144 million in 2003— the amount they charged during that period grew by a much larger percentage: approximately 350 percent, from $338 billion to $1.5 trillion.Economic problems with this aside, this keys right into public policy. The federal budget deficit is soaring, and no one cares. Why? Because they know what it is like to carry around a decent percentage of thier income as debt, and so far, nothing really bad has happened. The only problem is that the federal government cannot declare bankruptcy.
| Permalink | 
