Economic Policy, Obama vs Romney

[ZRod]

Ideally you would want people to save their money until they can afford what they want to buy and still be financially sound, yes. But you could also slow economic recovery by stifling demand. Just one of those things where you have to go with the lesser of two evils.

Unfortunately that's not how anything works anymore. If you saved and paid cash for most things your entire life, you are then considered a 'ghost' and will be unable to get a loan when you might need one, and even have a bad credit report possibly disqualify you from getting a job.

 

I spent a couple years eliminating nearly all my debts, then got denied an application for a home loan because I did not owe enough people money. Good credit scores, good income, good job history, just didn't owe enough people money.

 

Then there is just the cost difference between things now and 30 or 40 years ago when everyone did pay cash. New cars cost just a couple thousand, even for an expensive one. Now the average cost is closer to 30k. Sure people 'make more' but not the 6 times or more that the price of the car increased.

Actually the car example isn't necessarily true if you adjust for inflation a base model 1958 Chevy Impala would cost $21,084 today where the current 2013 cost $26,685. That is a 20% difference but you also have to remember all the added technology that is on a modern car like airbags, traction control/stability systems, emissions controls, cd/mp3 player (w/anti theft features), power windows, programmable power door locks, child locks, onstar, and other things I can't even think of.

 

And I don't think you have to "owe" people money to build your credit, but you do have to play the game and get loans or use credit cars. Like I said in an ideal world you would want people to save their money, but things are never ideal.