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Is the economy in the DR worse than in the US?
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08-22-2012, 10:40 PM
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muytreda
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Oct 2005
Posts
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You make an interesting point. There are two answers:
Yes and no
Yes
Yes if you look at amount of leverage. Luckily personal credit is not as widespread in DR society and thusly people own what they have free and clear in much higher percentage then in the US. Exceptions typically are moto's and cars if they are still young or have been able to secure credit on them.
No
No if you look at the general state of the economy. Generally the DR consumers have less and they have less of it then the US consumers. The ability of the DR economy to generate new money going forward is severely hampered by massive debt and endemic corruption, when compared to the US. Thus this situation is likely not going to change.
Concluding
It can be stated that the future economic earning capacity is generally much higher in the US then in the DR. Thusly the economic outlook is better in the US, this goes also for consumers.
On a personal level the consumers in the DR are generally less in debt then in the US making them better positioned to deal with a lower economic outlook. American consumers IMO should be much more frugal in their spending because although their percentage chances are better, if they are hit with personal setbacks the consequences can be devestating
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