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How exactly does debt create wealth?
So, I'm not the brightest bulb in the lamp but even so, doesn't debt create poverty?
8 Answers
- Anonymous1 decade agoFavorite Answer
It doesn't. Obama is a liar and his followers are fools. You can't spend your way out of a recession.
- 1 eye dogLv 71 decade ago
When we buy something that we don't have the cash on hand to do with
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We go to a bank to get a credit card or a loan to do so
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And in doing so we promise to pay back the loan or pay off the credit card
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A little more than was borrowed or charged on it
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So who gets this profit but the people that own the bank of credit card provider
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And they have their company on the Stock market so the average man or woman can invest in stocks to get a chuck of that excess pay back
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And the more stocks that is owned the more is paid back to the owner
.
So you see if you have a couple of 100 shares of Toyota at \$76.00 a share as it is now and get a auto deposit of lets say
.
$100 every 3 months well those 100 shares will become a 1000 shares
- Anonymous1 decade ago
Credit creates wealth. Debt is the unfortunate byproduct of that process.
- Anonymous1 decade ago
It kind of falls in line with all of that other capitalist eco 101 bull chit like, oil prices are due to supply and demand and the wealth of the rich will trickle down to the poor and big govt. etc etc.
You know the same crap that put us in the f'ed up position we find ourselves in today.
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- Anonymous1 decade ago
Well fiddlesticks, thought I'd found the end of my rainbow.
- 1 decade ago
ummmmm...............
I have never known debt to create wealth. Money creates wealth.