Re: Texas: Creation institute sues coordinating board

On Apr 24, 8:15 am, Damaeus <no-m...@xxxxxxxxxxxxxxxxxxxxx> wrote:
Reading from news:talk.origins,
Chris <chris.linthomp...@xxxxxxxxx> posted:

On Apr 22, 10:58 am, Damaeus <no-m...@xxxxxxxxxxxxxxxxxxxxx> wrote:
Reading from news:talk.origins,

The problem with the economy that the market for products is stifled by
the lack of cash in the lives of people who have the most potential to
spend. Given that, the market was not deciding as much as available
credit was.

You're kidding right?

Your contention is that for the last few years there was not enough
credit available to US citizens?

People have to get stuff in their lives somehow. If you can't make enough
money at a job to get a small house, keep the car repaired, buy groceries,
etc..., then you take on debt and run up the credit card, then pay the
bills for as long as you can hold out.

If it gets to the point where you cannot hold out, then the phrase
"living beyond your means" becomes relevant. This is not to say that
everyone who lost a home is guilty- some were preyed upon by
unscrupulous lenders. Others suffered catastrophic illness. But the
fact is that many went into the game with their eyes wide open and
their brains tightly shut. They convinced themselves their houses
would always be worth more than what they paid for them, and they'd
always be able to sell them for a profit. When housing prices fell and
their balloon payments came due, reality bit them on the ass.

Once you can't make enough money
to pay the bills anymore, you can't buy any more. Your boss won't give
you a raise, either. So your contribution to the economy is over until
you can manage to pay back all that debt, with interest. Interest
payments do nothing to boost production, so it's a waste of income that
could be spent keeping people employed and keeping production going.

Not exactly true. Interest payments grease the economy. If there was
no interest, there would be...damn, nothing. Darned few people can
afford to buy a car with ready cash, and even fewer can do that with a
home. Ditto electronics like computers, cameras, televisions...hell,
you name it. Interest also allows companies to make those things, and
it allows banks to lend money to people who invent new things, or
better ways to do old things. It is surely a waste of personal income-
but then, that's a matter of "living within your means" as I mentioned
earlier. Every money counselor for the last 20 years has been harping
on the same theme: pay off your credit cards ASAP. You're throwing
money in the trash by running a monthly balance. If you can't pay it
off this month, then don't buy that thing until you can pay it off.


I suppose another part of the problem was that our savings rate was
way to high compared to, say, the Chinese?

Not everyone is able to save.

I know that. But I also know that many people who earn peanuts are
able to save.

Those people who were saddled with debt
were able to tread water until finally their hours were cut at work, and

Why are they saddled with debt? For many it was....living beyond their
means.

their bills started going unpaid. When all you make is going to pay for
the house note or rent, utilities and food, then old credit bills, there's
nothing you can do to boost the economy until the credit cards are paid
down so you have available credit to spend. That's how it is when you
don't make enough not to use credit.

Damaeus

Having been poor I have a lot of sympathy for people who are really
destitute. But I have no pity at all for someone weeping and wailing
who's driving an SUV, and who has a big screen plasma TV, 3 computers,
and never goes anywhere without an iPod and a Blackberry. Sorry but if
that's what's on your credit card bill, it's time to suck it up, dump
that crap for what you can get for it, and make ends meet.

Chris

.

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