Spencer Heath Archive

Item 868

Verbatim note by Spencer MacCallum from conversation with Heath

The vice of installment buying is using credit for consumption instead of for production. Installment buying so far as it contributes to future productivity is justified.

Installment buying, sometimes called the “hire system,” comes properly into much ill repute because of its employing credit for consumption instead of for production. Installment buying so far as it contributes to future productivity is justified. It is a good thing to borrow capital to put into your business.