Yes, many people are in debt, but they converted the debt to assets. And those assets are still around. They have to produce value to be able to finance those assets, and so in all, it balances itself out. In economic terms, I don't see how population debt is bad for an economy. If this 'debt' was paid from money that was excess in the economy anyways, then for the country, there is no direct loss.
Let me explain.
A bank has $10.000. The government gives then $2000 for free.
You come to the bank and ask for $1500. They give it to you. Over the next 4 years you work for an employer, giving him about $4000 of value. Of that, you pay $500 in taxes, payback $2000 to the bank and keep §1500 for yourself. The bank makes more money, the government makes more money, and you had to work harder to stay in the same spot.
Debt is a way to make slaves of citizens, but for the economy, it is good because it forces productivity out of people.
You do understand that the reason the economy sucks right now is that people are defaulting on their mortages? There's a lot of debt out there that will not get paid back... much more than anyone was willing to admit.
Let me explain.
A bank has $10.000. The government gives then $2000 for free.
You come to the bank and ask for $1500. They give it to you. Over the next 4 years you work for an employer, giving him about $4000 of value. Of that, you pay $500 in taxes, payback $2000 to the bank and keep §1500 for yourself. The bank makes more money, the government makes more money, and you had to work harder to stay in the same spot.
Debt is a way to make slaves of citizens, but for the economy, it is good because it forces productivity out of people.