Ahh, so in Quantum physics 2+2 does not equal 4?
Originally Posted by Landru Guide Us
What happens when you borrow at these lower rates yet the amount just continues to climb? Eventually your interest rate can be zero and you will not be able to make the payments as the principle is just to big. Your logic fails rather hard.
Irrelevant since governments aren't like people with credit card debt. But in fact, yes, it is a good idea to take on more debt if it's at a lower rate -- and in fact the US can now borrow money at historic lows.
This assumes that a car will land you a better job, but I thought governments were not like people...so how does this logic apply?
Also it makes sense to borrow more money to increase your income -- say by buying a car so you can get a better job by commuting.
Thrift is always rewarded when the folks who ignored it come begging for help...just ask Germany or China...except they squandered their good fortune to save a failed monetary union...sad really.
The only thing simple here is your simplistic attempt to pretend that macroeconomic forces reward thrift. That's silly.
"A claim for equality of material position can be met only by a government with totalitarian powers." -
Friedrich August von Hayek
"If one rejects laissez faire on account of mans fallibility and moral weakness, one must for the same reason also reject every kind of government action." -Ludwig Von Mises
"To model our political system upon speculations of lasting tranquility, is to calculate on the weaker springs of the human character." - Alexander Hamilton