Monday, August 15, 2011
Picture of the Day: Credit
A striking picture from the Wall Street Journal. In some respects it is not too surprising: when jobs are hard to find, many go back to school to get new skills. The question is, is this increasing debt a bad thing? Well, if these are investments in human capital that will make our country more productive in the future, no. But if this money is being spent on areas where the job prospects are dim (e.g. if everyone is going to law school) then, yes. I think in general, however, that it is not a bad thing to see people investing in themselves rather than things like new cars - it is just that the effects take a while to be realized.