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But expenditures for popular projects have outrun income, particularly in recession years, and the state has increasingly become dependent on borrowing to keep the books balanced.
If formal credit raising fails, households are dependent on borrowing money based on informal institutions.
These companies are also heavily dependent on borrowing funds in order to grow their businesses, making them even more vulnerable to interest rate fluctuations.
"Obviously we're doing something right," says Herb of his disdain for credit scoring, which he contends is too dependent on borrowing histories accumulated during a relatively benign economy with strong housing prices.
The book strongly suggests that a financial system that relies exceedingly on debt to make it grow "amplifies wealth inequality". In fact, it suggests strongly that the debtors in 2008 were the less wealthy cohort of the nation, dependent on borrowing a great deal of money to own their home.
Before joining WfWI, Alphonsine was dependent on borrowing money from other women to venture in selling sorghum and beans.
Similar(41)
For one thing, he said, South Korean companies are much less dependent on borrowed money than before; the average ratio of debt to equity has fallen to 136percentt from 400percentt.
They are heavily dependent on borrowed money to operate day to day, whether making loans or paying interest to depositors.
During Mr. Ackermann's tenure, Deutsche Bank also faced criticism that it took too much risk and was overly dependent on borrowed money.
Banks in Germany are also overly dependent on borrowed money, he said, and some need to raise more capital or reduce the size of their financial holdings.
Responding to criticism that it is overly dependent on borrowed money, the bank also announced plans to shrink its total financial holdings to reduce risk and address demands by regulators that lenders increase their ability to absorb losses.
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