Monday, February 23, 2009

Two More Things on the Stimulus

I would love to see a little more about this, but land speculation has brought down banks forever. Church history makes that clear. The Kirtland Bank fell along with hundreds of other banks in the 1830s.

Adams Smith was right:

The most important thing is that most debt never stimulates anything. Debt only limits future growth. That is why the Church talks about only borrowing for an education and a home. All other purposes of debt are dangerous. If I borrow money for a TV, I temporarily stimulate the economy, but later resources that could have bought other stuff is instead eaten up by interest payments.

1 comment:

Jason Eldredge said...

What if it's a really cool TV? C'mon Tony, play now. You can always pay later.