Credit Gets You a TV, Not Economic Growth

Everyone seems to believe that easy and expanding credit fuels economic growth, even though there's no proof that it does.
Borrowing to buy doesn't make you richer. 

It's pretty obvious how credit drives my personal household consumption. If I borrow, I can get a nice big TV and a new car, but eventually I'll have to skimp to pay it back. In a way, the consumption-fueled borrowing binge is an illusion of wealth -- after all, borrowing doesn't increase my salary. Pleasure today means pain tomorrow.

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