Why do people think they can apply economic principles to home finance?
Monday, April 4th, 2011Cebbin asked:
Spending money stimulates the economy because it shuffles weaalth around in a way that benefits more people. The government creating jobs leads to increased employment, which leads to increased spending, which leads to businesses hiring more people, which leads to increased spending, etc. Of course this cant apply to home finance! So why do people seem to believe that it does?
Spending money stimulates the economy because it shuffles weaalth around in a way that benefits more people. The government creating jobs leads to increased employment, which leads to increased spending, which leads to businesses hiring more people, which leads to increased spending, etc. Of course this cant apply to home finance! So why do people seem to believe that it does?

