Debt – Is it the thing that keeps capitalism going?

What is it that keeps capitalism going? Capitalism is followed by most of the countries. Now, countries need to borrow in order to run the government, for various purposes. Thus, countries incur debts. Same is the state of America. In order to keep the government going, the government will have to go on borrowing. Thus, it is true that debt keeps capitalism going. Debt is almost like that necessary devil that helps the capitalism to go on.

What is capitalism?

Capitalism is a kind of society which is mainly ruled by the profit motive. The wealthy in such a place holds the disproportionate power and then uses it so as to preserve especially the interests, which is mainly the concern with making more money. But in order to generate any kind of profits, the system may result into different forms of trauma – social, political or ecological. Socially, the human potential is also absorbed by relentless cycle of work and then the consumption. Now, as this happens with regards to the ecology, nature is gradually worn away from the surroundings and then packaged as the lifeless products which are to be sold in the market and then discarded as waste.

In fact, capitalism is that dominant social, political and economic system in our world which is seen to have been affecting all the corners of our Earth, all the countries, the government and inevitably the people.

With regards to the nation, excessive lending has always been the only way of maintaining the living standards of the population. This has been happening while the wealth is still not being concentrated into the hands of the elite.

The debt ceiling drama was just a part of the regular action to put up with capitalism. All the politicians knew that the nation would never let itself default. In fact, government debt is the basic thing which determines the price of things. Against this all the other instruments are then compared. In addition, things like fixed-income securities markets, paradoxically as are characterized above all with the intense application against private ingenuity, the technological innovation, and the concentrated competition are being compared too.

Thus, debt is what it is and it helps capitalism grow. It is one of the main ingredients that helps spice up the whole show and keeps capitalism going. So, debt is where capitalism is and capitalism is where debt is.