First Negative Constructive

	“Resolved: That the quantity of credit available to American consumers should be 
significantly reduced.” My partner and I stand here today in total opposition of this 
resolution because of the dangerous implications of its passing. There are simply no 
benefits to affirming such a resolution, and the reduction of credit would endanger both 
the American economy and the American society.
	First and foremost, credit plays an integral part in our modern economy. Banking 
companies provide credit as an easier form of spending, and consumers use it as such. 
The rise of the credit industry has provided consumers with a whole new way to spend 
their money, creating a rapid increase in consumption. Businesses have boomed based 
solely on the wide availability of credit. Credit has helped to increase the circulation of 
currency in the national economy, allowing the US to grow and prosper.
	Reducing the quantity of credit would prove devastating because of it’s vital role 
in the economy. Dr. Kurt Richebacher, an economist and author, states that 

“Simply reducing credit could be disastrous. Even a slight 
reduction of credit could create enormous negative 
repercussions in the asset markets and financial markets.”
	
	This negative impact could be directly seen in the real estate business, where 
loans are a central element. Prospective home owners and estate brokers use credit to 
purchase property - no one has $200,000 in cash. It is the bank loans that provide the 
money necessary to buy the house, and the owners will eventually gain a profit over a 
period of time. If you diminish the availability of home loans, the real estate market 
would crash, distressing the national economy. This is an example of only one industry 
that depends on credit – many others would be similarly affected by a reduction in its 
quantity. Clearly, the strict disempowering of credit would only have deplorable effects 
upon the American economy.
	A second reason as to why credit must remain intact is its positive impact upon 
society. The credit industry provides consumers with a way to afford luxury items – 
essentially improving their standard of living. Now, we are not saying that everyone 
should use a credit card to buy whatever they want – but you must admit that the ability 
to buy a large screen TV and pay for over a period of time instead of in one lump sum 
does provide for a better standard of living. As consumers get a taste of a higher sense of 
living, they feel motivated to work harder in order to finance their refined tastes. It is the 
credit that increases worker productivity and betters the overall sense of society. Linking 
back to our first argument, the increase in consumer spending on luxury items and labor 
output helps the economy via the extended circulation of currency and improvement upon 
the business model.
	Credit also encourages one of the major tenets of capitalism – private businesses. 
Entrepreneurs seeking to start a small business can look towards the mass availability of 
loans to help them get their enterprise up and running. Without that initial amount, most 
would never be able to obtain their dreams of owning their own business and there would 
certainly be a sharp decline in the amount of new corporations. Relating to our previous 
argument, it is the abundance of small businesses that makes our economy unique and 
successful.
	Obviously, credit plays a fundamental role in America today. There can be no 
doubt that a mass reduction in its availability would simply weaken the economy and 
jeopardize our societal values. Therefore, you must vote negative on this resolution. 
Thank you for your time.

(Ian Gibson)