Wilkinson also brings up a story of someone also in

This preview shows page 6 - 7 out of 7 pages.

Wilkinson also brings up a story of someone also in college but is not attending a school she is happy with but will not transfer because that would require her to increase her loans. It is argued that your happiness and wellbeing should come first before any amount of money. Being in debt does not mean you are irresponsible as long as it is for a meaningful purpose. Being secure with the loans you take out and confident that you are making the right decision is very important in this process. Krugman, Paul. "Debt Is Good." The New York Times, The New York Times, 21 Aug. 2015, - economy.html. Paul Krugman argues that American actually needs to acquire more debt. The federal government is able to take out loans at very low interest rates, therefore they should be taking advantage of this and put themselves in good debt. It is even said that having at least some government debt is a good thing, "some government debt outstanding helps the economy function better. How so? The answer, according to M.I.T.'s Ricardo Caballero and others, is that the debt of stable, reliable governments provides "safe assets" that help investors manage risks, make transactions easier and avoid a destructive scramble for cash" (p. 8). Just as we should invest in ourselves individually we need to invest in America too. The debt that is acquired by America not only affects the present but greatly changes our future. This debt can be used to build institutions, fix roads, improve water systems and much more. Building institutions create more jobs, bettering the economy, fixing roads and railways allows for better transportation and improving water systems around the US allows for better access for clean water. All of this debt acquired would be considered good debt and therefore worth it.
Image of page 6

Subscribe to view the full document.

Charron-Chénier Raphaël, and Seamster Louise. "(Good) Debt is an Asset." Contexts02 2018: 88-90. ProQuest. 7 Nov. 2018. Most Americans are in debt, what varies is how much debt and what the debt is used for. Debt allows people to do things that they normally would have to wait years to do through saving, for example, going to college, buying a house, or beginning a new business. All of these things are investing in one's future and if done right through money management can lead to great accomplishments and happiness. Having debt even allows for greater net worth due to having more financial assets. Being in debt is not always correlated with being in a poor financial situation. Studies even show that American households who owed the most money in 2016 were also the most likely to have a total net worth of more than $1 million. Nearly 65% of the most indebted households in the U.S. are millionaires (pg. 89). Good debt should be seen as an asset and not as a financial burden.
Image of page 7
You've reached the end of this preview.
  • Spring '07
  • Jack
  • Debt, Deaton, DEBT-FREE

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern