I agree, but why (for example) cars use to last more than 3 decades just fine, and now their life expectancy has been reduced to just one. I think debt economics has enable the real productive economy to design products with a shorter useful life. If I am not wrong, cars used to be able to handle hundreds of thousands of miles, today when a car makes it to 100k its pretty old, I know of no car that made it to 200k. Think about it. Both banks and car makers (in this example) make a lot of money out of us by making cars that last just less than 10 yrs. It is no coincidence that by the time you finish paying off a 6 year car loan, the car starts having problems and almost 80% of the time you will buy another car.
I am curous, thats all, how many miles per year would you say these vehicles are driven? And what is the average speed limit in Cuba? Thanks
You are missing the point. This is not about the car industry, but I used as an example to demonstrate how this industry has change the quality of its product thanks to cheap credit.
True. It now often costs so much to repair (vs. the cost of "new") that it's logical to throw away and replace... much of our economy is based upon this fact. Years ago I didn't buy extended warranties. Now, however, I do. But if past the extended warranty period and something fails, I replace rather than repair.