Credit Debt Cures
Is Dave Ramsey good for the economy in general?
He preaches to never go into debt. To pay cash for everything. If everyone did as he teaches, what would the difference be in America, generally? .
Public Comments
- dave ramsey is great for the economy if every one followed his common sense teachings (including the government) then there would be very little debt and think of all the trillions of dollars put into mutual funds that would be growing our economy like crazy all the families that suffer from money problems would no longer have that hanging over their heads children would be less likely to go hungry the nation would be much better off
- Ok, imagine... Tomorrow when we all wake up, we have no more debts, our assets (even if 10% paid) are ours to keep. Our bank balances are what they are. And we are not borrowing anymore. All start with a clean slate. Are you paying for a mortgage? If not, you might have to work and save for 20years before thinking of buying a house. But then, who would sell you a house? Since my hypothetical kids can't borrow anymore, they will get my house when I die. If your parents don't own a house, tough luck. Who would build a house? Since nobody can borrow, then only people who already have huge capital can build houses, to sell to people who ahve accumulated enough capital. Who would grow food? Since he can't borrow, the farmer who relies on short borrowings as cash flow to buy seeds/fertilisers has to close down. The farmer who has a plot of land not ready for cultivation cannot borrow mney to prepare the land. Only those with enough cash NOW can continue to farm the land. Since noboday can borrow, what would happen to banks? Since they cannot lend, they cannot pay interest on your savings account. They will only charge for their services, and their services would be mainly safe-keeping of your money and charging for ATM convenience. I am not very sure many banks would survive. There'd certainly be massive lay-offs. WHat I am trying to get at is that living debt free is perfectly alright on a personal level. As long as not too many people do it, it will work. But if everybody does it, the system collapses.
