Rank: Veteran Joined: 8/25/2012 Posts: 1,826
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nakujua wrote:PeterReborn wrote:nakujua wrote:PeterReborn wrote:nakujua wrote:limanika wrote:@ nakujua debt is like fire. Good servant but bad master. You don't borrow to go for expensive holiday trip, rather you can borrow to buy a dairy cow to generate income. Jubilee need to hire someone from outside the box to audit and correct this mess otherwise we'll kick them out of state house before 2017 Indulge my ignorance, but the holiday trip exposes your kids to life outside the farm, knowing only one way of life can be detrimental. I am assuming by the time the lender offers you the money to borrow they already know you can pay. So if you can pay the debt why not enjoy the holiday. Maybe you need to attend a basic economic class but it is economical suicide to borrow to go on expensive holiday,or borrow to do an expensive wedding or even borrow money to consume.The expected return on borrowing should be higher than the interest payments on those loans. I am just trying to discover more about the whole economic tools, it doesn't hurt to seek information, and it also does not hurt to give that information if one happens to be in the know  But isn't there a measure of satisfaction in economics, like if I borrow to go on holiday and I end up happier and more fulfilled than I was before, or the family is soo happy that if they had not gone they would be mostly sulky - does that not count as a form of return in economics, ama returns have to be tangible. I understand it is foolish to borrow if the cash end up being stollen, but if its going to some use should there be a way of measuring that benefit  So how do you measure happiness? that was my query, if economics has a way of measuring that, maybe a satifaction index - where if like in a family you have 1 argument per day with your spouse it is given a score, if they are angry then burn your car it is given a lower satisfaction score - then if you take them to an exotic holiday the satisfaction score goes up again... so using borrowed money to raise that satisfaction score counts as maendeleo. ama economic theory wise I am talking gibberish That is economic gibberish, the investments that afford you tangible returns are all that matter.
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