Sunday, September 05, 2010
The Problem with Credit
Cash only was a better system. Prices have risen too high as a result of credit, creating a society that lives beyond its means and requires living constantly in debt for necessities such as housing, insurance and medical. If people use credit then prices rise too high (don't have the cash, just charge it). If it was a cash only society the prices would match the salaries of the majority in order to sustain a healthy economy. For a very long time the rich have been the only real consumers who could afford what they buy. For the past 30 years everything has been "unaffordable" for the Middle Class, thus credit has been abused and "what the market will bear" has been out of proportion to the reality of what is. No credit would also eliminate Greed.