From today’s New York Times comes this gem:
…an American Express cardholder whose maximum has been reduced to $1,000 from $1,200 has that much less to spend on clothing or meals out, purchases that lift the economy.
I really hope the New York Times business section gets better writers.
An American Express cardholder whose maximum has been reduced by $200 and thus is unable to spend that amount on clothing or dining out has no business buying clothes or dining out in the first place. An economy floating on debts that people can’t pay back can’t sustain itself. That’s the main reason for the current financial crisis. People in America are generally overextended. That’s why when they lose their jobs for even a couple of months, they’re unable to pay their bills and fall behind.
It’s astounding that some people are still advocating unsustainable consumer spending as the primary means of “fixing” the economy.