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.

Replies (1)

G. T. Karber's avatar
G. T. Karber 2 years ago
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?