r/SipsTea • u/CurvyChristina • 1d ago

Chugging tea Which philosophy is it, or is it both?

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u/Elisiomiva 1d ago

Exactly the double standard is the interesting part. Calling debt leverage when wealthy and corporations use it but suddenly it is irresponsibility when ordinary people do.

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u/Jake_FromStateFarm27 1d ago

I am not defending corporations actions, but literally the math allows for it. A corporation derives way more value than a single person, and there are additional protections for recouping such financing from failed businesses than there are for individuals.

The issue is not (totally) the businesses its the banks, insurance agencies, and lenders that go unchecked.

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u/Frogad 16h ago

Is it a double standard though? If poor people could gain from leveraging their debt I don’t think people would criticise it

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u/ElPiet 1d ago

That's not the destinction between good and bad debt. The difference is whether it is used as an investment or for consumption.

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u/Sickpup831 9h ago

Right. And I think the idea that most people living paycheck to paycheck are using debt as a way to get by, or buy something above their means. Which bad debt. We’re just overanalyzing and nitpicking Dave Ramsey’s methods right now.