How The Economic Machine Works by Ray Dalio13 insights · See all
- Borrowing pulls future spending into the present because you consume more today than you produce and commit to repaying later, creating waves of higher current spending followed by lower future spending that form cycles.
Borrowing pulls future spending into the present because you consume more today than you produce and commit to repaying later, creating waves of higher current spending followed by lower future spending that form cycles.
- Credit amplifies economic activity because lending lets people spend beyond current income, and that extra spending becomes someone else's income, raising overall demand in a self-reinforcing loop.
Credit amplifies economic activity because lending lets people spend beyond current income, and that extra spending becomes someone else's income, raising overall demand in a self-reinforcing loop.
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