You wouldn't think something so embarrassing, would you?

>>1554283
It's only a problem if people hoard cash.
If you save by investing, no problem
If you pay part of your debt off after each paycheck, it's just giving the money who someone else who will spend it.
If you hoard cash and then give it to pay off your debt then we have a problem.
Adam Smith was wrong.
Seems like Vulgar Keynesianism to me.

>>1554283
What is this from?

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Is this Krugman? He's a bit of a meme desu.

The problem with lowering debt, private and public, is that paying down debt lowers consumption, which lowers GDP. Western governments believe that debt is sustainable so long as the rate of change of GDP exceeds the rate of change of Debt. Since GDP growth is, and has been for the past few decades, shackled to credit spending, by paying down debts, the debt ratio will actually INCREASE. Consider that, when people lower their consumption prices will lower, deflation. This deflation essentially increases the the real value of the debt, and so you find that you have to pay of more debt in real terms.

Some debts CANNOT BE REPAID, and attempting to repay them because "muh honor", or "b a gd housewife", is not only moronic, but catastrophic. Just look at the utter clusterfuck the Greeks are in now thanks to the ECB.

The solution is to simply abolish all private debt.

>If everyone's not in debt, civilization will collapse!

Wow that sure sounds like a impartial and completely unbiased textbook you've got there.

>>1554283
>If you pay part of your debt off after each paycheck, it's just giving the money who someone else who will spend it.

you are assuming that all debt relationships are "impatient short term debtor" and "patient long term creditor". Yes, if you don't repay debts to an individual he has effectively been robbed however, this is only true when money is loaned between individuals. You have totally missed the fact that banks exist, debt is created out of thin air, and is an asset to the bank.

Debt is not an equilibrium between the present and the future, you just don't understand how debt works in a modern economy.

>>1554659
no, he is arguing that if everyone tries to pay off their debts at once, demand will collapse, causing deflation, rising debt in real terms, and a general economic collapse. Yes, it does seem counter intuitive however, the confusion stems from using false axioms to understand our situation. National economies cannot be modeled as households, and the bank-debtor relationship cannot be modeled as Adam lending Bill $50.

>>1554690
oops...
I meant
>>1554461
not OP

>>1554283

With the finance industry, anything is possible.

Think about it: an American born in the year 2000 would be LUCKY to die in debt.

>>1554461
Nobody except idiots hoard cash. Hoarding cash is a meme. Nobody would allow their money to depreciate like that.

>>1554704

People hoard their cash in banks, who make money with it, and charge you to keep it.

Honestly, investing in a bank shouldn't cost the investor money, but should result in money accruing to them. But no, people who invest in banks are customers instead.

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Of course not.

Everyone spends their money eventually, it is how you spend it that counts. You could spend it on meth, take out a car loan that will take years to pay off and end up paying twice as much for the car, or you can spend your money sensibly and get the most bang for your buck. It is obvious.

>>1554283
ladies and gentlemen, consumption based economy heads

>>1554690
I hate when people use that "I can balance my home's checkbook and spend within my income, why can't the government!"

>>1554704
>Nobody except idiots hoard cash. Hoarding cash is a meme. Nobody would allow their money to depreciate like that.
>smug anime girl.gif.jpg.exe.png
This is literally a problem with most of the upper-class, they make a shit-ton of money, and go off and spend it on a whole bunch of sightseeing and following their dreams and buying shit, then they get tired of it and come back and keep making more and more money, but now they have nothing they want to do, so they just let it sit there and keep collecting more and more, because they don't know what to do with it

>>1554283
Keynesians are economically illiterate

>>1556749

That is not at all accurate.

>>1554730
>People hoard their cash in banks

People don't hoard cash at all. Nor should they. Cash is for short term liquidity, not long term storage of wealth. If you have more than a few months' expenses in cash, you're doing it wrong.