Episode 184: Reevaluating Regulations
Words & Numbers
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The History of Consumer Credit
In the 1920s, Henry Ford said he didn't believe in credit because that's just bankers getting their hooks into good of American consumers. But when you look at the average household balance sheet, what did people borrow for? Mortgages, cars, human capital investments, student loans and consumer durables - all of which are capital goods. This notion of borrowing that consumers can borrow like a business can borrow is really hard for people to wrap their heads around.
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