I was reminded of this by a Wall Street Journal editorial from December 30, 1997 by LENDOL CALDER entitled "Give Americans Credit For Handling Debt Wisely
an excerpt:
A river of red ink runs through American history, providing endless
material for critics of "easy credit." The most famous was Benjamin
Franklin, whose character Father Abraham observed, "He who goes
a-borrowing goes a-sorrowing." We remember the aphorism, but have
forgotten the comment that follows it: "The People heard it, and approved the Doctrine, and immediately practiced the contrary."
Later in life, Franklin reconsidered his hard line against debt. "May not luxury therefore produce more than it consumes," he wrote to a friend, "if without such a spur people would be, as they are naturally inclined to be,lazy and indolent?" This kind of analysis challenges the sense in thinking of consumer credit merely as an engine of consumerist hedonism. Jeremiads against credit focus exclusively on a single moment--the moment of purchase when desire is satisfied--and ignore the months and years following the day an installment contract is signed. Once consumers step onto the treadmill of regular monthly payments, it becomes clear that consumer credit is about much more than instant gratification. |
