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April 23, 2005

Does mine eyes decieve me?

Daniel Gross at Slate is incredulous that Americans are actually paying down their credit card debt in response to increasing interest rates. Could it be? Consumers actually responding to changes in incentives as if they make their financial decisions with some semblance of rationality?

I must say you can also color me surprised, if pleasantly so. Like witnessing a pack of lemmings preternaturally change directions at the ragged edge of disaster.

-- Battlepanda

April 23, 2005 | Permalink

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When Daniel Gross writes:

There are signs at both companies that consumers may be responding to higher rates by doing something almost completely unexpected and practically un-American: paying down credit card debt,

I'm pretty sure it's tongue-in-cheek. There are a lot of pundits who believe it is the duty of Americans to consume beyond their means to keep the economy afloat, particularly when a Republican is president. But Daniel Gross isn't one of them.

Posted by: ktheintz | Apr 23, 2005 8:31:40 PM

Oh. Tongues firmly in cheek, no doubt. Gross is a favorite of mine.

Posted by: Battlepanda | Apr 23, 2005 10:23:13 PM

If I'm an example, those Americans who can afford to pay down credit card debt, are. Please inform Mr. Gross that we less-learned types can still do simple math: the interest rate on a savings account is x; that on a credit card is x times six, eight, or ten. One flows into my pocket; one flows out. Which benefits me more? Hmm...

Good grief, I now use credit so seldom that I didn't realize that a card had expired until two months after the fact. Does that brand me unpatriotic? Probably.

Posted by: Glen | Apr 24, 2005 4:26:58 PM

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Posted by: peter.w | Sep 15, 2007 7:26:26 AM

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