2024, Economics  -   1 Comment
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Our reliance on credit has fundamentally altered how we perceive affordability. With a plethora of credit options readily available, from store credit cards to "buy now, pay later" plans, the focus has shifted from the total cost of an item to the convenience of a manageable monthly payment. This easy access to credit, however, comes at a price – price inflation.

The concept of consumer credit stretches back centuries, but its widespread adoption coincides with the rise of mass production in the Industrial Age. Companies needed to find ways to make their newly produced goods accessible to the average consumer. The solution? Installment plans, which allowed people to spread the cost over time. This innovation, while seemingly beneficial, has arguably had unforeseen consequences.

With credit readily available, businesses can potentially charge more for their products. After all, if consumers can finance their purchases, the initial price tag becomes less of a hurdle. This creates an environment conducive to price inflation, as businesses can raise prices knowing a significant portion of their customer base can still afford the product through credit.

The impact of easy credit extends far beyond everyday purchases. The burden of student loan debt exemplifies the negative consequences. This crippling debt can hinder young adults from achieving major life milestones like buying a home, starting a family, or saving for retirement.

The solution lies in a shift in our approach to credit. Before succumbing to the allure of convenient monthly payments, we must prioritize considering the total cost. Additionally, a heightened awareness of the risks associated with debt is crucial. By adopting a more responsible approach to credit, we can break free from its inflationary grip and regain control of our financial well-being.

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6 days ago

This excellent presentation gives testimony to the degradation of the human species to the degree that they may be defined as "Entities that acquires things!"This is yet another huge nail in the coffin of a species which has lost all connection to the purpose and meaning of life and thus of what being a human entails.It's axiomatic amongst those cognescenti that man is primarily a spiritual being enclosed in a physical form. But when that principle is abrogated, and physical existence is prioritized over spiritual values, you inevitably arrive at chaotic social breakdown! We've arrived to a point where it's a "Dog eat dog," or "Every man for himself" type of existence, ideas that are so pervasive that after a few decades, this pathological behavior pattern is the accepted as the norm.The only thing guaranteed is a life of anxiety, uncertainty and depression!