Consumer debt was heavily restricted in 1940s to curb inflation

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13 pointsdanbolt5 comments

This claims the goal was to mute inflation, but it was also to drive consumption dollars into savings, more specifically war bonds.

Wars are prosecuted now by Chinese and other countries savings because the dollar is the reserve currency. What happens when the dollar reserve currency is under threat? Do they issue war bonds or cut back on wars and the 800 military bases?

I don't know how this could work now with credit cards. What do you do, cancel everyone's cards?

Set the limit below $1000 and make people pay it off bi weekly.

What do you do with people who currently hold high amounts of consumer credit debt and are unable to pay it off to get below that $1000 threshold?

A lot of people, unfortunately, rely on credit cards to get their weekly groceries because they have been so bad with money. Do we just let those people starve?

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