Simply:
• People wouldn’t borrow for projects that weren’t **actually** valuable.
• Things would actually be affordable and interest rates would be real, so consumer debt would be far more rare. Debt would mostly be a product for business and productive endeavors.
• People would actually have savings so not only would consumer debt be less available, it’s also be less desired.
To put it even simpler: The market would just find an accurate price for it.
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People borrow money (on credit cards) for flights, clothing, food, even rent! Why would the currency change people’s desire to take on debt for those things?