Quote:
Originally Posted by AzteK
Because people used the money to educate themselves. Not to buy shoes, tv's and clothes...  |
It's pointless to consider either possibility since neither would ever realistically happen, but let's look:
1. If student loans were forgiven, what do you think the money would be spent on? Not much different than what CC-forgiven debt money would be spent on.
2. This is just a guess but considering the higher interest rates on CCs than on student loans, forgiving CC debt would ultimately pump more into the economy as there'd be less money being wasted on interest.
3. Let's say there'd be 2 possibilities with discharging CC debt: Those CCs are then closed, or those CCs remain open. If they are closed, then it finally gets a bunch of people off of spending outside their means. If they remain open, then yes the debt could be built back up, but look at all the spending that could happen.
Anyways, most of that is devil's advocate talking - neither would ever happen. Perhaps a "mortgage holiday" as someone mentioned could be possible, which I think would be better given how many people are ridiculously in debt and how foreclosures aren't really sought after by banks especially in underwater situations. Who knows.