Huh, negative interest rates

[Cutlass]

Debt is occasionally useful, though I fail to see how debt was instrumental in creating sanitation. You are beginning to sound like Jesus Heurta de Soto who claimed that property titling killed Osama Bin Laden, except we are talking about debt creating technology. Debt should be limited to such things as funding a new businesses. It should not be used for consumption, or even buying a new house.

Why ?

 

[Tahuti]

Why ?

It fragilises the economy. Taking debt is a massive risk most people fail to see. The chances of getting bankrupt are virtually nil when you are debt-free. That also applies to businesses that employ thousands of workers: Debt is only useful for growth, not to keep it that way. When deflation strikes, these businesses will be the first to go bust when these are indebted. And many people will be unemployed.

 

[El_Machinae]

Debt is only useful for growth, not to keep it that way.

I will agree that there's a massive growth benefit that can be built off of consumption debt. But, consumption debt can only really cause problems when it's taken out stupidly. There are a host of people who try to minimize that stupidity. There might be validity to decreasing the stupidity, via sheer regulations, but the growth benefits of consumption debt shouldn't be ignored.

 

[GamezRule]

It fragilises the economy. Taking debt is a massive risk most people fail to see. The chances of getting bankrupt are virtually nil when you are debt-free. That also applies to businesses that employ thousands of workers: Debt is only useful for growth, not to keep it that way. When deflation strikes, these businesses will be the first to go bust when these are indebted. And many people will be unemployed.

You keep talking about deflation as though it's inevitable. Why is it inevitable?

 

[Cutlass]

It fragilises the economy. Taking debt is a massive risk most people fail to see. The chances of getting bankrupt are virtually nil when you are debt-free. That also applies to businesses that employ thousands of workers: Debt is only useful for growth, not to keep it that way. When deflation strikes, these businesses will be the first to go bust when these are indebted. And many people will be unemployed.

The chances of being more than a serf are virtually nil when you are debt free. Most people think it's worthwhile to not be serfs. The risks are manageable. Should we choose to do so. The prosperity is impossible in any other manner.