In Australia, people owe $155 for every $100 they earn! Chances are it’s similar in your country.
Rather than think of how they can leverage it, world changing entrepreneurs will be thinking of ways they can solve it.
4 thoughts on “Quirky fact 6.0”
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Western countries in general lack good saving habits. All due to years and years of big business spending millions to make sure that you spend.
It’s all to do with psychology….hahaha….spend now, suffer later 😉
But why is this something that needs solving? This is an engine of growth for the economy if handled well. If I earn a reasonable and secure income and have many years of earning capacity in front of me, then I borrow against that so that I can live the life I want to live, rather than waiting around until I’ve accumulated all the necessary capital and then finally spend it.
Would you invest in a business that was not adequately leveraged??
This is a problem world wide, in the UK we have the situation where people have increased their mortgages as houses prices have increased, which they have done alot over recent years, the average house price in the UK is c.£200,000, or in US Dollars $405,449, Australian Dollars $465,066 and Canadian Dollars $413,968.
The result, a lot of people here in the UK are reliant on their property price increasing every year and any drop in price could spell real trouble.
So owing more than you earn, nothing new, and I blame the financial institutions for lending without conscience!
dr.dre what you talk about is true, we all borrow against future incomes, which is what is such a worry, what if that income ceases through the result of a world wide slow down?
The view that this aids growth in the economy is a mith, the idea of spending your way out of trouble/recession etc has been proved to not work in the UK in the 80’s when everything devlaued and the result property prices took ten years to get back up to the value they used to be, wage rises became a thing of the past as a result there are still many low paid jobs even today, the list goes on.