"You should live in your car, not in your home"

[question everything]

Said a financial adviser to a client, who is paying $1200 a month mortgage and $1800 on car loans...

This is interesting: when there are financial people on money related programs (CNN "on the money" and "open house") they all sound the alarm of too much credit debt, of people amassing debt that they will never be able to pay.

But the Bushies - father and son - want us to go out and spend. And, since more than 2/3 of our economy is service oriented, not spending money could lead to recession, they tell us. Hence the concerns about retailers not making as much money as hoped during Christmas shopping. And, of course, if spending is down, many who work in the service industry, not just McDonald or Wal-Mart but even Macy's and other higher value providers, as well as restaurants, could lose their jobs.

It would be nice if any of the candidates would address this anomaly.

Another comment was that not all the credit card spending are on frivolous items, like flat screen TV. But that as wages are stagnant yet energy costs keep rising, people have no choice but to charge. I think that in many places property taxes can be charged to a credit card.

One guest said that joining a car pool just once a week can save a lot of money.

Another comment - when gas prices inch down, people start driving more.

It is not just "taxing the rich." It is the twisted structure of our economy where we need to spend money on items that we don't need, we need to get into debt to... prevent others from losing their service job, to continue pumping revenue through sales and income taxes.

I do wish that some of the candidates address this.

[mrreowwr_kittty]

1. That's the paradox!

It's your fault if you buy stuff and get into debt.

It's your fault if the economy tanks because you don't buy stuff.

I've been thinking a lot about this stuff too and came across some interesting ideas about the economy on the Internetz. I'm no genius but it seems to me what we're doing now can't possibly be leading us down a good path. Check these out and see what you think. There are some pretty radical ideas in them, particularly where population growth is concerned, but I think we're getting to the point where drastic action is needed.

http://www.steadystate.org/

http://www.npg.org/forum_series/steadystate.html

http://dieoff.org/page88.htm

[rucky]

2. The behavior can be explained by a sense of scarcity

you spend what you can because you may not get to tomorrow. I'm not saying it's smart - just human nature.

[gristy]

3. No choice but to charge? Of course one has a choice.

In the days before credit cards, one lived within one's means. One way or the other. Because there was no other way.

[question everything]

4. I think that before credit cards wages were more decent

allowing a family to make a living with only one wage earner.