Personal Finance
Why Capitalism leads to higher debt?
By Loopholes Singapore  •  October 25, 2020
Capitalism is only possible when people believe that they can possess more private property and capital over time. However, it is not possible for all countries to get infinitely richer simply because money is only valuable insofar as it stays finite. That is why countries have to encourage borrowing from its citizens so that they can add more debt into their balance sheet so that they can afford to continue selling the capitalist narrative. This results in an ever growing amount of debt and higher risk or default as it is getting harder to predict how funds flow from different individuals and entities. In this post, we are going to explain why this vicious cycle persists and how it actually leads to financial crisis from time to time. People in capitalist nations constantly expects to get richer over time One of the few constants in a capitalist society is the endless expectation to get richer. T...
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By Loopholes Singapore
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