When it comes to household debt, that purpose is to support individuals' financial situation like home mortgages, auto loans, or student loans. In other words, it can cause consumption in some ways in

Youngman Park

When it comes to household debt, that purpose is to support individuals' financial situation like home mortgages, auto loans, or student loans. In other words, it can cause consumption in some ways in the market, so increasing household debt has a good impact on the economy in the short term. But if the money of household debt went to the stock market, not the individuals' lives, what happens next?

Feb 23, 2021 4:52 PM

Corrections · 2

When it comes to household debt, the purpose is to support individuals' financial situation like home mortgages, auto loans, or student loans. In other words, it can cause consumption in some ways in the market, so increasing household debt has a good impact on the economy in the short term. But if the money of household debt went to the stock market, not the individuals' lives, what happens next?

I'm not sure how to correct this, as the usage of debt is unnatural to me. As an simple example, "If I have household debt then I need to pay someone back". Did you want to say taking on debt allows people to buy a house or car they otherwise can not afford?

February 23, 2021

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