Post #3: Economy Based on Credit

Nixon said, “We must protect the position of the American dollar as a pillar of monetary stability around the world.” Which later came to be seen as there were no longer limits to the amount of money that could be printed, which in turn led to America being an economy being based almost solely on ‘plastic money’ or credit and debit.  The reliance on debit and credit leads to America becoming more and more in debt.

Debt quickly became a negative almost as soon as it was introduced into society.  It almost isn’t solely the borrowers fault, but instead it is both the lender and the borrow who can be seen as evil. Credit in its own sense is a debt because you are borrowing money from money that you don’t actually own.  Money in this sense then also becomes an evil because it is creating tension between people

David Graeber relates debt to morality.  He tells us that being consumed by debt is nothing new.  He calls debt simply a promise, a sense of obligation, which turns into something that can be quantified and transferred.  This is how he relates it to morality, putting bonds between people that wouldn’t exist if it weren’t for the debt.  It creates a moral drama, from balancing money spend in a house hold all the way to America balancing money as high up as the government.

The economy we have now is based on virtual money, which makes it a promise that we make to each other.  We see that people are falling further and further into debt because of their credit.  People don’t realize the amount of money they are actually spending because they are putting it on credit.  Money becomes almost of no use to some people because they figure they are better off just using their credit card, turning America into an economy based more on debt instead of credit.

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One response to “Post #3: Economy Based on Credit

  1. I agree that we definitely have more debt because of credit. People buy things with money they don’t actually have, and because of that they will buy even more things. They don’t worry about the money when they’re buying things, but instead worry about getting the money later. Once they pay off one debt, they have other debts to worry about.

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