This blog started out as a companion piece to my book, Musings from the Christian Left (excerpts of which can be found in the July 2004 link) and to support a planned radio show. Now, its simply a long term writing project from a Christian Left Libertarian perspective (meaning I often argue for liberty within the (Catholic) Church, rather than liberty because the church takes care of a conservative view of morality.

Wednesday, August 23, 2006

Unwinding the Credit Boom

Robert Samuelson writes in August 23th's Washington Post on Unwinding the Credit Boom. He traces the advent of high consumer borrowing to its current historic levels. He reports that the Fed is trying to slow it down gently but that only time will tell whether their strategy will lead to a soft landing or a recession.

We shall see. In other countries, people can get consumer debt through their unions rather than the marketplace. Perhaps employee-owned firms will begin to do this as well. If they do, you will see people moving their credit business from the marketplace where interest is required to private sources, where it might not be. If interest payments merely boost profits, then charging interest in an employee-owned firm would be an implict transfer from younger borrowers to older borrowers, who are already advantaged by owning more shares, which accumulate other shares unless the full payout goes to the worker. For the bigger picture, see the text of my book at,,


Anonymous Rudicus said...

This is an intriguing idea if I understand you correctly. It would also be a nice opportunity to take the power back from some of the CC companies.

I saw something yesterday called where people lend money to each other grass roots style - looked a little sketch, but I'd be curious to get your take on it.

Most of my friends in Europe don't even have a credit card, or if they do, it's only one and they hardly ever use it.

But it's a different story over there socially.

1:28 PM


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