But It's Not Fair

Sorry to just keep regurgitating Andrew Sullivan, here, but a reader complains about being the undeserved victim of the financial crisis.

But as non-participants in recent bubbles (we rent and don't invest in vapor technology), we have not been rewarded. Our income has been flat or falling, our conservative investments plummeted, and low interest rates assure few viable low risk savings alternatives.

Yes, being debt-free will (hopefully) allow us to suffer less than many. But why does massive stupidity by some always result in universal punishment? You make it sound like everyone benefited from the overindulgence. We did not, but fully share the overdue hangover.

Living a debt free lifestyle isn't just about the economic benefit. It is also a psychological state of not owing anyone anything.

That said - it's tough to get ahead these days without incurring debt. It's the only way a middle class person can afford a home, buy a car, open a business, or attend college/graduate school. As such, we separate debt into good debt - home loans, college loans and bad debt - credit cards, bookies, etc.

The idea is that good debt is process by which you enrich yourself financially by gaining equity in a home or by improving your job prospects through education (although a home and education are more than an economic consideration) and bad debt contributes to self immiseration by digging a hole to big to get out of.

Problem is, the "good debt" is being gamed right now. The high demand for college and easy credit has propped up college tuition. (I think...I don't know this for a fact, it is merely a theory). The housing market "good debt" was being gamed as well by speculators and folks who were offered and who took loans knowing the probability of repayment was low.