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Eric Swanson

How the tax code encourages debt : The New Yorker - 0 views

  • The government doesn’t make people go into debt, of course. It just nudges them in that direction
  • This gives the system what economists call a “debt bias.” It encourages people to make smaller down payments and to borrow more money than they otherwise would, and to tie up more of their wealth in housing than in other investments.
  • So encouraging people to take on debt qualifies as a genuinely bad idea.
  • ...1 more annotation...
  • Subsidizing debt seems harmless simply because we’ve always done it. But the fact that you’ve had a bad habit for a long time doesn’t make it less dangerous.
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    A great editorial about the problems associated with the government encouraging a debt economy.
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