So, you're saying the secret to long term success is free and easy credit? Or at least easy credit?
Let's see, what countries have had that before? Hmmm...hmmm...oh yeah, can you say those countries that suffered from HYPERinflation? The concept was "if we make money accessible, we can grow for a longer period of time". And you know what? They did! At the expense of prices, in the long run. Then, when their economies were ragged and unmanageable, they needed vast reforms to get back on track, and most had to reconstitute their currencies.
Nope, we're in good shape, and things are humming along nicely. They will continue to do so, too. Don't forget you WANT labor to be less expensive than credit when that labor is as highly productive as it is here in the US. That means you can borrow money to hire 2 people who will produce more than the cost of your borrowing.
That wouldn't work in alot of less industrialized nations, where labor is less productive. We saw that in the NAFTA argument "oh...Mexican labor is so cheap, all the jobs will go south"....well, we know THAT's not true. And why? Because they aren't as productive as US workers.
BTW, I'd say you're the one who's thinking old thoughts. |
