First of all, many people who bought a house before said that they used to buy a house by biting their teeth, and life was very tight. Now that the house has appreciated, wages have also risen, and the pressure of repaying loans has also eased. Buying a house early benefits early. If you choose to buy a house now, the house will appreciate in the future and the salary income will also rise. So the pressure of buying a house with a loan is only temporary, and it will be much better in a few years.
And now many people can't do it without buying a house, because the house has other functions. For example, if you want to buy a house when you get married, now young people can't get married without buying a house; If you want to buy a house, it is difficult to settle in the city without buying a house; Children also need to buy a house for education. Some parents take out loans to buy school districts in order to send their children to a good school. If you don't buy a house, you can rent a house in a big city, and it's really inconvenient for your children to go back to their hometown for the college entrance examination. So many people buy houses for a better life.
Here we go again. Buying a house has a money-making effect. Over the years, house prices have risen year by year, and you can make money by buying a house with your eyes closed. At present, investing in the stock market, funds, gold and equity is risky, which may erode the capital. Of course, many people are also afraid of buying a house with a loan and can't afford the mortgage, but as long as the house price rises and the property appreciates, they can sell the house at a high price and make a lot of money in a few years, so many people haven't thought about repaying the mortgage for decades, and everyone is playing the game of passing parcels.
Finally, the domestic housing rental market is chaotic, which also makes many people choose loans to buy a house. For example, if the landlord wants to sell the house, the tenant can only move overnight. Landlords have to raise rents every year, and tenants can only accept them silently. In the eyes of many people, even after paying the rent for a lifetime, the house is still the landlord's, not his own. Even if buying a house is a loan for decades, the house will eventually belong to him. However, buying a house and paying off the loan for 30 years and the interest of the bank is equivalent to buying another suite. In fact, people who borrow money to buy a house also have to pay high interest to the bank.
Why should the state repay bank loans?
Because loans need interest, countries need loans to get interest. Loan is a credit activity that banks or other financial institutions lend loans with certain interest and must repay them, even if the state still has to repay the banks.
Why should countries lend money to other countries?
If money is issued without restriction, without the support of economic aggregate, inflation will occur.
The essence of lending to other countries is to lend money to other countries to buy materials or technology, and materials will flow in through various channels. Because of the actual material support, it will not lead to inflation.
Why don't countries directly print the money they need, but borrow from the World Bank?
As we all know, money is something we trade normally. If we don't have money, there is no way to trade. However, many people are very skeptical. Why don't countries or banks directly print the money you need, but borrow from the World Bank when there is no money?
First, it is not within the scope of the national plan.
In fact, we all know that money is a very special thing, and it cannot be printed and distributed by people's subjective will, because we still need to consider the changes in the market and people's lives. If every country can issue money at will, it will have a very bad influence on the development of the country. Moreover, many countries' economies will be bad, so they can't print money directly according to their own needs at this time, because this is not a national expenditure plan, and loans can actually balance the country's income and expenditure, so many countries will choose to borrow from the World Bank in the case of economic shortage.
Second, it will lead to inflation.
If there is an economic shortage in the country, it will print money at will, resulting in a high circulation of money in the market, so in the long run, it will lead to inflation, which means that money is worthless. Then at this time, everyone will find that the price of goods on the market has risen very fast, so the money in everyone's hands has depreciated at this time. In other words, the corresponding purpose can't be achieved, even if the state prints money, it can't solve the practical problem. Moreover, this behavior will also have a certain impact on market transactions, which will lead to fluctuations in the entire market.
Third, it will lead to currency depreciation.
Money is very important for the normal operation of a country and also related to people's livelihood. Excessive issuance will lead to currency depreciation. Therefore, the state's management of money is very strict and must be handled in accordance with the rules of the market. Therefore, the country will not directly print the money it needs, but borrow from the World Bank.
What does state lending mean?
Because there will be temporary capital turnover in the development of some enterprises, individuals can buy a house and a car without paying it in one lump sum.
Loan means that banks, credit cooperatives and other institutions lend money to units or individuals who use money, and generally agree on interest and repayment date. Loans in a broad sense refer to loans, discounts, overdrafts and other borrowing funds.
Banks put concentrated money and monetary funds out through loans, which can meet the needs of social expansion and reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation.
So much for the introduction of why the country needs loans.