As more and more consumers go deeper into debt the nation will also go deeper into debt because the money will begin to be fictitious.For example, if a rich bank loans someone money and the person spends it, now both the bank and the person are out the money. The person cannot pay it back and both the bank and the person lose money. The bank loses the remaining balance and the person loses whatever they have already paid back.
The more this happens, the worse off our nation will become. It is not only the consumers who are in this predicament. So is the US government. They are borrowing money form other countries and are unable to pay it back. At some point, something must give.
As more and more consumers go deeper into debt the nation will also go deeper into debt because the money will begin to be fictitious.For example, if a rich bank loans someone money and the person spends it, now both the bank and the person are out the money. The person cannot pay it back and both the bank and the person lose money. The bank loses the remaining balance and the person loses whatever they have already paid back.
The more this happens, the worse off our nation will become. It is not only the consumers who are in this predicament. So is the US government. They are borrowing money form other countries and are unable to pay it back. At some point, something must give.