If loans didn't exist (like now, because foreigners have cottoned on to what we are doing) and we didn't save any money (like in 2000s) there would be no way for business to borrow to develop stuff such as cars, new efficient machines or new ways to harvest food to increase efficiency, which in turn makes everyone wealthier because products are more common and easier and cheaper to manufacture.
The only reason we had this boom is because we are living off the savings of the Chinese!!!
Our economy would LOOK worse off, because the GDP figures are based 70% on consumption rather than 80% production (which is unsustainable). If our national product was based on more manufacturing less spending would hadly make the GDP figures worse atall.
Loans were given to people who consumed rather than invested for their own benefit in the future.
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