re: #452 Blind Frog Belly White

Of course it would be great for each American if he paid only cash, salted away lots of savings, and never borrowed money to buy anything. Provided, of course, that everyone else keeps borrowing money to buy things. Otherwise there will be massive unemployment. Anyone remember the winter of 2008-2009? Nobody borrowing? Everyone paying only cash and buying only what they could afford?

The problem with Conservatives is that they make economic theory out of Puritan moralism - but only for the common man.

I once had a Conservative tell me that if everyone only bought what they could afford, paid cash, and saved their money, the economy would BOOM! I asked him how. He didn’t really have an answer. I told him that Japan had done exactly that, and their economy had been mired for a decade in zero growth and high unemployment.

That’s called “Austerity” Ask the Greeks how well it worked for them.