The essence of modern economics can be summed up in two words: borrowing money. One generation spends, and the next spends a lifetime paying it back.
I don't know if there is a general consensus among nations in the direction you are saying but it seems to be happening in almost all nations as most of the countries are in debt with no plans of paying back instead they leave it for the coming generation. I have though about it and it never made sense to me why the leaders have to chose that part. The money my country is owing will take 10 generations to pay back meanwhile the money was borrowed within a decade and we cannot point to what the money was used for. If this is not corruption and a grand design to mess up nations and generations to come, I don't know where to place it. 
Topic: A generation spends money, a lifetime pays it back. - page 2. (Read 806 times)
The essence of modern economics can be summed up in two words: borrowing money. One generation spends, and the next spends a lifetime paying it back.
That's right, but the second generation doesn't have to be the one paying it back, but it's the doings of first generation and they must be so cruel and idiots that they only thought about themselves and their coming generation is now slave. But this system is old and is not practised in most of the world, but only in progressing countries, for examples, here in my country if a poor person took loan and died then his children have to pay for that loan but it's not like the parent used that money for enjoyment. Loan should never be taken, and it should never be inherited to the siblings but unfortunately the world has been shaped in a way that, all the loans are not responsibility of their upcoming generations.
If you dont agree that second generation should pay for first generation, then how do you think pension system should work? Right now you work and pay taxes, from which retired people receive pension. When you retire, those who work will pay for your pension. Based on your logic, if you retire now, those who work will be your slaves, because they will work to keep you living.
I think it is ok to borrow money, as long as person understand and have opportunity to repay it. I dont want to spend whole life saving money to buy car and house. I want to borrow money and have all that now, to be motivated to work, pay taxes and have more comfortable life, then save every penny for the my whole life, to allow myself to by buy a house and die in few years later.
The essence of modern economics can be summed up in two words: borrowing money. One generation spends, and the next spends a lifetime paying it back.
That's right, but the second generation doesn't have to be the one paying it back, but it's the doings of first generation and they must be so cruel and idiots that they only thought about themselves and their coming generation is now slave. But this system is old and is not practised in most of the world, but only in progressing countries, for examples, here in my country if a poor person took loan and died then his children have to pay for that loan but it's not like the parent used that money for enjoyment. Loan should never be taken, and it should never be inherited to the siblings but unfortunately the world has been shaped in a way that, all the loans are not responsibility of their upcoming generations.
Depending on the country where you live, the laws can be vastly different, since in most countries the debts you may have with the government are inherited in the case of your demise, however any debt with a private entity is immediately forgiven, it is because of this many companies and businesses refuse to give loans to the elderly and to the sick, since they do not want to lose money in the case of their death, however it seems that now insurance companies are taking part of that risk by giving insurance to those people so those businesses can offer them loans.
I don't think any loans from private entities/companies/financial institutions are forgiven in case of the borrower's demise. Most companies and institutions wouldn't give loans without collateral, which should be something worth more than the value of the loan so that it can be liquidated in case the loan defaults because they barely care about what happens in someone's life; all they need is their money, and they make sure they get it because you can't run a company if you keep forgiving people the loans you have given them if they die, you will need to have a system which doesn't let you lose money if you are in such a business.
This is also why it is not easy to get a loan: You can barely find a company, both private and government-funded, that will give loans without asking for valid collateral. If you don't have anything you can keep with them, you barely stand a chance.
Such things only lead more to local customs or habits in the matter of paying debts, but if we direct it at the government, of course it will lead more to the rules of the government itself. However, my Koran teacher once said that a child has no obligation to pay his parents' debts that were made by his parents in the past. But because most children always love their own parents more, of course they are also not willing if their own parents are still in debt to other people so they prefer to pay it directly even though it is not their obligation as a child.
In the current loan system, it is an obligation for families to pay off debts if the person concerned dies and even in my religious law, it is an obligation to pay off the debt so that the person concerned can be at peace in the afterlife. If referring to religion, maybe most people will think differently, but that's how the law is in my religion because debts must still be paid.It's different when dealing with the government, the debt that is inherited to the next government will definitely run by itself because there is an agreement between one country and another. If the debt cannot be paid off, it is better not to take it and that is if it relates to each individual.
Such things only lead more to local customs or habits in the matter of paying debts, but if we direct it at the government, of course it will lead more to the rules of the government itself. However, my Koran teacher once said that a child has no obligation to pay his parents' debts that were made by his parents in the past. But because most children always love their own parents more, of course they are also not willing if their own parents are still in debt to other people so they prefer to pay it directly even though it is not their obligation as a child.
In the current loan system, it is an obligation for families to pay off debts if the person concerned dies and even in my religious law, it is an obligation to pay off the debt so that the person concerned can be at peace in the afterlife. If referring to religion, maybe most people will think differently, but that's how the law is in my religion because debts must still be paid.It's different when dealing with the government, the debt that is inherited to the next government will definitely run by itself because there is an agreement between one country and another. If the debt cannot be paid off, it is better not to take it and that is if it relates to each individual.
The essence of modern economics can be summed up in two words: borrowing money. One generation spends, and the next spends a lifetime paying it back.
If I understand correctly, then if one generation borrows money, the next generation will still have to pay if the borrower is faced with death, but this is a personal loan concept that is carried out by each individual. If it is broader, it can be simplified, the government that is currently elected starts taking loans and even though its term of government ends, the next government will also have to pay the debt.The essence of modern economics can be summed up in two words: borrowing money. One generation spends, and the next spends a lifetime paying it back.
If I understand correctly, then if one generation borrows money, the next generation will still have to pay if the borrower is faced with death, but this is a personal loan concept that is carried out by each individual. If it is broader, it can be simplified, the government that is currently elected starts taking loans and even though its term of government ends, the next government will also have to pay the debt.The reasons for the need for borrowing can vary and generally the government says it is to make some policies in terms of infrastructure development. But if they are wrong in their calculations, the debt that is taken will not solve the problem and not to mention a corrupt government that will result in a greater gap.
I think what he's trying to say is that we now depend on borrowing to spend and not investing to make more money so we can spend without having to borrow. The people in this modern day economy are more borrowers and we keep debts for the next generation without we knowing if the next generation can be able to clear up the debt. Most federal government are borrowing money to use in spending and not borrowing to invest to help the next generation because when we invest, it's for the future as it helps the economy but when we spend, we're only thinking about the present and not the future. The idea of borrowing was a wrong idea as it has made us lazy and depending on borrowed money that we might never pay back but put the debts on the future generation coming. Before it was we that made the next generation have a better life but we're now making them to suffer.
To be fair, both on governmental scale, and on personal scale, economy is in shambles right now so trying to come up with a way to make money enough to not only spend less than what you earn, but also saving aside some investment money as well, that's not how it works at all, not many people do it that way.We are living in a world where we don't have enough income to live, so we make a debt to keep living, like for example I have debt that is twice as my salary, how am I suppose to save money aside when my income isn't even enough to live? Of course I can't and that is the problem we are facing right now. This isn't just personal individual loans, this is also governments too. Best way to move forward would be just taking a loan to make an investment, so if your investment pays for that loan that is great, if it doesn't then you are even more screwed. That's how things work, most people end up bankrupting when they do that kind of risk and can't move forward.
Your right about saying a generation spends money and anothet pays it back but I'm not sure it has a connection with the modern economics, cause of a truth the world economy is depreciating due to inflation and other factors but it doesn't depends on the amount of money being borrowed to meet up some requirements in the country. I think the economy sectors is at a stop because there's no efficiency in the demands and supply so everything is being affected.
I think what he's trying to say is that we now depend on borrowing to spend and not investing to make more money so we can spend without having to borrow. The people in this modern day economy are more borrowers and we keep debts for the next generation without we knowing if the next generation can be able to clear up the debt. Most federal government are borrowing money to use in spending and not borrowing to invest to help the next generation because when we invest, it's for the future as it helps the economy but when we spend, we're only thinking about the present and not the future. The idea of borrowing was a wrong idea as it has made us lazy and depending on borrowed money that we might never pay back but put the debts on the future generation coming. Before it was we that made the next generation have a better life but we're now making them to suffer.
The essence of modern economics can be summed up in two words: borrowing money. One generation spends, and the next spends a lifetime paying it back.
Those things normally happen on the political government were everybody wants to use the medium or the privilege they have to get or borrow any amount they can so that by the time they leave office those who will assume the office will be the ones to settle the debts, is actually bad because the money that would have been used for more meaningful things will then be use to settle up the loans which was talking by the previous government, for me I see it as an act of wickedness because the act will not only affect the new office but also the growth of people because empowerment will be difficult, though this act also happen in most family were children will have to sell there lands to settle the deed of there father. 
The essence of modern economics can be summed up in two words: borrowing money. One generation spends, and the next spends a lifetime paying it back.
This economic system will revolve around our generation, just as we inherited it from our ancestors, who, in turn, received it from theirs. The reason is that we are trapped in this system, and we are only paying the interest while our loan remains unpaid. We know that we can't afford to repay it all at once, and they benefit from it. One generation secures its present while destroying the future of the next generation. Similarly, that generation also takes loans to repay the debts inherited from their ancestors, and the system continues in this manner. The solution is to spend less, avoid unnecessary expenses, and control our spending. The less you spend and utilize, the more beneficial it will be for your future generations. Every person should follow this approach, which will lead to a stable economic condition. 
The problem starts with either loans coming with high interest rates, making it difficult to meet up the demand, or the most common issue is spending that borrowed money on things that can't be accounted for and having no plan of repayment being laid
That is one of the biggest reasons why countries, firms, and even individuals tend to have debt all their lives because they don't have a repayment plan nor do they have a plan about how they are going to use the money they are borrowing so that it can provide them some benefit. Suppose you are an individual, and you keep borrowing money for personal expenditures without a proper income source. In that case, you are going to get in trouble when the time of repayment comes because you won't be able to repay the loans.
Bad loans become burdens very quickly. This is why it is said that it is not everyone's cup of tea to be able to manage loans and lent finances properly; it requires a lot of critical thinking and planning, and everyone can't do it. You will end up paying interest for your lifetime if you take a loan and can't repay it on time.
I mean, this works for as long as there is population growth. And as the West is experiencing low birth numbers this might become a much bigger problem than it has been in the past.
The essence of modern economics can be summed up in two words: borrowing money. One generation spends, and the next spends a lifetime paying it back.
I agree 100%, 80% of people are in debt all their lives.
The essence of modern economics can be summed up in two words: borrowing money. One generation spends, and the next spends a lifetime paying it back.
I think your point is towards what underdeveloped countries do, the previous generation tried to borrow money under the pretext of improving human resources, but behind all that they also work like a saw, every swing will produce money into their pockets. While the next generation is responsible for paying it back, as far as I know, the new government also has the same ideology, borrowing money under the pretext of wanting to solve more complex problems. This problem is too complicated, it might always revolve around the same line or be like a relay that has no finish line.The IMF or developed countries that have a lot of money will always reach out to lend money to underdeveloped countries, they also have goals, Some countries have to lose their assets because they fail to pay their debts, such as Sri Lanka having to lose its ports and airports because it failed to pay its debts to China.
The essence of modern economics can be summed up in two words: borrowing money. One generation spends, and the next spends a lifetime paying it back.
The essence of a modern economy is to help one with lesser resources gain access to extra resources, which could be used to invest in areas that matter and be productive in order to stand out and meet up with innovation.The problem starts with either loans coming with high interest rates, making it difficult to meet up the demand, or the most common issue is spending that borrowed money on things that can't be accounted for and having no plan of repayment being laid, which is why some governments go from loan to loan, servicing existing loans, and also borrowing new ones to hand over debt to upcoming ones instead of reducing it.
The essence of modern economics can be summed up in two words: borrowing money. One generation spends, and the next spends a lifetime paying it back.
But we shouldn't forget that in every challenges lies a way out of it, when things like this happens, then we must be ready and able to hold ourself down to the capacity of what we can offer, when we are not too dependent, then we are most likely not going to get affected by the way of the effect of these governments actions and inactions, because we are less dependent on them or their economy policies, instead being independent.
Try to look on a situation when one generation takes a loan, and next generations duty is to pay it back as following - all those loans are long-term investments, and the products they were taken for, will start to become profitable only in tens years or even more. Generation that are to pay back loans, are the one who will get most profit from such investments. For example several countries spend millions to build railroad connection, but next generation will be one who will be its main users or tracks will be their main link to other countries.
I often hear how people complain, that their government took huge loan, and their children will be the one who will have to pay those loans back. But those children, when they grow up, will be main users of infrastructure, technology or whatever those loans were taken for.
I often hear how people complain, that their government took huge loan, and their children will be the one who will have to pay those loans back. But those children, when they grow up, will be main users of infrastructure, technology or whatever those loans were taken for.
The essence of modern economics can be summed up in two words: borrowing money. One generation spends, and the next spends a lifetime paying it back.
Borrowing money isn't a problem if this money is being wisely and efficiently invested by the countries. It means the country is developing new sources of future incomes which can be used to pay for the loans, while generating value and quality life for the citizens of that country.Even billionaires and millionaires take loans to boost their businesses, and on long run it's worthful because if they had to save their own money before starting a new investment, it would a long time. And as we know, time is money in financial world.
The problem here lies on the fact most managers borrowing money aren't planning carefully how they are going to use it. Then they are creating only debt for future generations.
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