The Most Absurd Widespread Lie About the Economy!

I was listening to Ed Wallace on the radio, and he told a woman essentially that she shouldn't sell her car to get rid of having a car loan because THE ECONOMY NEEDS PEOPLE TO BORROW MONEY AND BE IN DEBT. He said that if everyone stopped borrowing money the economy would collapse. THIS IS RIDICULOUS!!!

If everyone stopped borrowing money, started paying off their debts with what they earned, then they would have CASH in hand to buy what they want/need. When you don't have $1000 a month in loan bills to pay, you have $1000 a month in money to spend. This is not rocket science.

The people who want to sell new cars, houses people can't afford, and furniture on credit would LOVE for you to believe you are helping the economy by going into debt for getting what you want but can't afford outright. The ONLY people who benefit from your buying what you can't afford on credit are the banks who collect the interest and the sales people who close the deal and earn commission.

Our economy WILL NOT collapse because people STOP borrowing money.
Our economy WILL collapse if people CONTINUE to borrow money to the point they cannot pay it back, thereby causing the banks to go under.