APNewsBreak: Study: Seattle minimum wage hasn't cut jobs

I do hope you read the links, from the tone you seem to be someone who doesn't understand the difference between Personal and Business/Governmental Debt.

A lot of people don't, they know that debt is bad - generally personal debt isn't great and gets an enormous about of people into trouble but don't really understand the reasoning behind it and think that applies to Goverments or Businesses as well, when really they are two different situations.

This isn't helped by the fact that in recent years the "DEBT CEILING" or whatever has been paraded around as look how bad X is they spent X on this. In reality it's HOW they spend the money that matters, not so much the value, but people get fixated on the size of the debt instead of the reasoning behind it.

Going massivly into debt to fund a war that may not be in the public interest is not a good thing to do, but the actual Debt itself is not the the problem, it's just a scapegoat to avoid the actual issue, the war itself.

See Debt for Goverments/Business are investments into the future, that very rarely applies to Personal Debt.

if I start with a Business Example, 0 Debt Scenario Company A has 1 van, making $1000 per week on Deliverys, $250 profit per week. they have to pay $2000 to buy a second van, they can wait 8 weeks to save up the $2000 and after 8 weeks have 2 Vans and $0 profit.

Debt Scenario Company B has the same setup, takes a loan of $2000 over 8 weeks, but they need to pay back $2500. Now they have 2 Vans, making $500 per week. After 8 weeks they have $4000 - $2500 for the loan, and they finish at 2 vans + $1500 because they took out a loan and ran in the red for awhile.

This is why Business Debt is needed, assuming you have a resonable increase in income from the Debt, you end up ahead of where you were by avoiding any Debt.

This scenario doesn't really apply in Personal Debt. You can spend $200 on a car, or take a loan for a $2000 car, in the end you still have a car, neither has improved your financial situation, it's not like you get a better job instantly because you spent more on a car, and so the debt hasn't really helped you in any way.

It would be better to either buy the cheap car and live with it, or try to save up and buy a better car if possible, without resorting to debt.

Hopefully you can see the difference between the two, Personally taking the loan hasn't really changed anything, other than an increase in the debt for that person, the Business by taking on Debt has increased it's profit.

So how does this apply to Governments, often they arn't in the business of making money in the same way as Businesses, but a lot of the same rules apply, depending what the Government pays for in your country there are a lot of things you WANT them to spend money on, running into the red, rather than just simply wait 5-10 years for the tax income to mount up enough they can afford stuff to buy.

If they are running out of space in a Hosptial, maybe infrustructure needs upgrading for new Trainlines, the Prison needs expanding etc etc

if I lived in an area with insufficent school places, I would want the goverment to invest in opening a new school

I don't want it to wait 25 years to save up the money to open a new school, I want it to borrow the money and do it now

this isn't happening in america anymore, and you can already start seeing the impact in some areas as budgets are slashed and new investments are halted, because the government is so afraid of increasing it's debt

/r/politics Thread Parent Link - rcbtv.com