Financial Fuss (11) - Debt Debt Debt

Chris Ortiz takes issue with a writer who made the following claim.

Credit, the lifeblood of capitalism, ceased to flow.

Chris say this writer is deadly wrong.

Credit is not the lifeblood of capitalism--only modern capitalism. Productivity, frugality, saving, and sound investing are the lifeblood of real capitalism. I'm not being "capitalistic" because I take out a 30-year mortgage, a five-year car loan, and pay with a major credit card. Capital is created for me by doing the opposite. I'm accumulating capital by being productive, avoiding wasteful spending, and saving. Then, I can invest in equally sound business ventures, and through my tithing, create Christian social institutions that deal with the immorality of my neighbor and the danger that represents to a stable social order.

Modern society is based on debt. The US Government debt is enormous. California depends on debt. General Motors operates with debt. Debt is normal for most households. Consumers buy Ipods using debt.

Christians culture should not be a debt culture. Our culture should be based on diligence, frugality, saving and wise investement in the future.