Hows the economy doing?

[SamuelRSmith]

TheRealMafoo said:

SamuelRSmith said:
but in the short run, which is what this recession is all about, having the debt is beneficiary.

Are you trying to say that being in debt during a recession is a good thing? If so, why?

Because it allows you to buy more things than you should actually be able to afford, which, in the short run, will lead to greater consumption and, therefore, demand. Greater demand increases investment and productivity, which is exactly what is needed to pull us out of recession. The side effects are that we have to pay back more during the good times - but that's easier to afford.

It's not just me saying this, btw, it's pretty much every single Government in the Western world.