Economics
Debt is a major source of money creation in modern economies. Some economists, especially the Austrian school believe that fractional reserve banking should not be allowed and banks should not be allowed to lend money deposited in their accounts by individuals, unless they approve so. Money creation should either be banned (Austrian school) or be a government privilege.
Fluctuations in debt levels are the same as fluctuation in optimism (boom) and pessimism (bust). The middle path is to be advocated at the individual or collective level. In boom times, the debt/GDP ratio rises, this prepares tough times ahead, as sooner or later people are bound to realise that the reality does not match their irrealistic expectations, then they collectively stop to lend and borrow, bankruptcies and debt deflation follow.
Read more about this topic: Criticism Of Debt
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