Overdue remarks on last week’s events.
Opening of the Consumer Finance Congress. I expected the event to be in a practical mood, quite ordinary money making topic, as it is usually considered. But no, I was caught surprised by the lofty wrapper to the subject in the introduction speech. We are apparently on a way heading to ?credit society?, a higher form of society than the one we have at the moment, even though the term itself is somehow fuzzy for me. But it feels like prevalence of credit in the daily lives is what it?s all about.
Some optimistic statements followed, regarding the positive impact of the new society on the economy and general well-being. The credit impacts the economy positively mostly in a way of increasing demand, at least that was what I understood to be the main assumption.
After this promising start there was a bit of backtracking from the industry participants, probably not used to thinking about their craft in such an elevated manner. Some even joked about the ?on the way to credit society? thing, comparing it to some slogans from times of the other economic system and the other society that we were supposed to be approaching.
Nevertheless, there are some interesting questions and as usual I regret I have no time to follow them, like, how exactly is the higher amount of credit impacting the economy (increasing the demand, fine, but first thought ? increasing also the amplitude in the economic cycles?), to what extent it is positive, what difference does having ?credit culture? make when you look at the overall structure of the economy, etc.
Btw, one thing about the ?credit culture? topic ? of course there were examples of US and UK ? but what I was thinking about, why the anglo consumers are so eager to get in debt, while the companies there seem highly averse to be leveraged. Elsewhere, it seems exactly the opposite.