How do credits affect the country's economy?

Question

Do you think the fact that we prefer not buying cash but in credit to payout within a period of 12 to 24 months has a negative impact to the country's economy?

Answer 1

Yes totally. The current US downturn can be directly atributed to people owing more than they can afford to repay the bank. The credit pool they have been using to survive on had dried up!

Answer 2

Not at all. It is not credit that is important, It is what the credit is used for. Credit can leverage your capabilities favorably if it's pu to a productive use.