Tighter Restrictions on Credit

We clearly need tighter restrictions on credit in this country. It's why we're in the state we're currently in. Look at this chart for instance:



Debt really starts to pick up in the beginning of the 1970s. Do you think it's any coincidence that that's when credit cards became a big thing? Probably not. Also many of the companies that have recently failed did so because they gave out loans to everyone, including those with poor credit histories. I think we need to be very careful of who we give a credit card or a loan to; it should probably be a very select few. If we don't do this the debt will continue to pile up until it is insurmountable.

yep but isn't that kinda liiike what capitalism is?
(for some reason this has always confused mee)

and restricting it would be kind of communistic??

I'm probably waaay off =/

Pinthin wrote:yep but isn't that kinda liiike what capitalism is?
(for some reason this has always confused mee)

and restricting it would be kind of communistic??

I'm probably waaay off =/

According to Yahoo answers: "With capitalism growth depends on private enterprise. Private interests, hard work and the prosperity that each Enterprise attains, brings well being for the individuals who work in it. With Communism, the state takes over the productive apparatus of the country, which is supposed to bring equal prosperity to the whole population regardless of how hard each individual works or merits. Since such conditions become completely dependent on the decisions of the state, such system renders production completely inefficient, and power and prosperity becomes the right of a much smaller group of individuals than in capitalism. The rest truly starve and remain oppressed and trapped in a productive-less vicious cycle with no legal way out . As a result a major difference between a Capitalist and a Communist system is that in capitalism there is freedom of speech, while in a communist way of life the very nature of the system does not allow freedom of discerning."
Limiting credit cards is not communistic, because the bank will have to pay for the mistakes the people who bought fillet mignon on a McDonald's budget. Limiting credit is not in any way a redistribution of wealth.

Capitalism doesn't need credit to work, but it sure helps. Communism has no need for loans.

alrighty..whenhens yours was too long (sparknotes )

yeaah I dont know what I'm talking about, just ignore it. hah

FinishingKick wrote:We clearly need tighter restrictions on credit in this country. It's why we're in the state we're currently in. Look at this chart for instance:



Debt really starts to pick up in the beginning of the 1970s. Do you think it's any coincidence that that's when credit cards became a big thing? Probably not. Also many of the companies that have recently failed did so because they gave out loans to everyone, including those with poor credit histories. I think we need to be very careful of who we give a credit card or a loan to; it should probably be a very select few. If we don't do this the debt will continue to pile up until it is insurmountable.

I totally agree. We give credit cards and loans to people who have poor credit histories and no money and suddenly wonder why they can't pay the debts and loans back and end up having their houses repossessed. Look where that got our economy.

baby got track wrote:

FinishingKick wrote:We clearly need tighter restrictions on credit in this country. It's why we're in the state we're currently in. Look at this chart for instance:



Debt really starts to pick up in the beginning of the 1970s. Do you think it's any coincidence that that's when credit cards became a big thing? Probably not. Also many of the companies that have recently failed did so because they gave out loans to everyone, including those with poor credit histories. I think we need to be very careful of who we give a credit card or a loan to; it should probably be a very select few. If we don't do this the debt will continue to pile up until it is insurmountable.

I totally agree. We give credit cards and loans to people who have poor credit histories and no money and suddenly wonder why they can't pay the debts and loans back and end up having their houses repossessed. Look where that got our economy.

mhmm then responsible familes have to pay for the screw ups, and while they live in a nicer house then us etc. That is what makes me really mad.

credit is at the centre of our economic growth at the moment, while I am sure there are other options not including credit while still growing the economy peoples ways are hard to change

Banks should be able to give loans to whoever they want. If they are stupid enough to give loans to people who stand a 50/50 chance of paying them back, then that's their risk. It could work out, or it might not. I don't see how it's anyone elses problem, it's not as if people have a 'right to borrow money', and banks giving out dodgy loans are infringing on their right. Sure, we have the collapse at the moment, but it won't happen again for another century (if the market was allowed to work properly, not like it is with the world giving bailouts..). Capitalism isn't flawless, but it's sure a hell of a lot better than what the mixed economy (what the world is doing by bailing out their banks) is going to give. Expect a lot more collapses from now on, and not to mention insane inflation. I'm all for low taxes, but when you hear idiot conservatives talking about giving tax cuts, while a country is producing deficits... well what's the point?? The inflation is going to bite twice as hard, on a generation which didn't agree to it. A scummy labour (or democrat..) policy of high tax is far smarter than a dumbass conservative (or republican..) offering tax cuts while the country is in debt. Too bad neither can just cut spending hugely, and give tax cuts...