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House Price Crash Forum

Does Debt Drive The Economy?


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Do people need debt to give them an incentive to work?

I mean what if we lived in a society that had very low or zero cost housing, would that mean that Joe or Jane would not commute 100 miles a day for the well paying job that they need to service the debt?

Would they sit on their arses?

Or would they be freed from the tyranny of the rat race and develop as individuals and I dont know read philosphy or try and find a cure for cancer?

Is debt damaging or in a bizarre way is it necessary to oil the wheels of the economy?

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I don't think they need debt as an incentive to work. They need capitalism. It aint perfect, but its the best we've got.

Ultimately, if the debt gets too big they may just say 'sod it' and give up?

My (now bankrupt) sister has......

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I don't think they need debt as an incentive to work. They need capitalism. It aint perfect, but its the best we've got.

Ultimately, if the debt gets too big they may just say 'sod it' and give up?

My (now bankrupt) sister has......

Sorry to hear about your sister.

Thats the thing debt is good for the lender just as long as the debtor can just about aford to pay the interest but never pay back any capital, but like you say if they squeeze too hard too many people will give up (hand back the keys) and suddenly debt will be the lenders problem.

Debt is negative capital, if we eradicted debt, the richer would be richer, the poorest might not have debt but the differentials necessary for capatailsm to work would remain no doubt.

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if its about control,

would it not also be of interest to the Government to create boom and bust cycles in the housing market. In order to tie people to debt (using negative equity to lock them in to the market)

If housing (or land) where free or very cheap people would spend more time doing better things. In Medieval times the average peasant (that basically what joe public is) only had to work for 50 days out of the year to pay his rent for his home and land. How many do we now work to live somewhere now.

May be if joe public did only work 50 days a year then maybe they'd be doing something more interesting like........... :huh:

Mmmm i think they'd just want to go shopping ( oh well :( )

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Thats what I think.

I don't currently have any debt so therefore I don't slave

away as much as someone with the 'average' 100k mortgage.

The govt,employers etc. want wage slaves who will not complain

and ask for higher wages.

Remember most employees would rather shave all their hair off rather than

ask for a pay rise.I am alright as I no longer have any hair.

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  • 439 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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