Friday, December 7, 2012

U.S. Consumer Debt Hits All-Time High: Borrowing Rises To $2.7 Trillion

The Federal Reserve said Friday that consumers increased their borrowing by $14.2 billion in October from September. Total borrowing rose to a record $2.75 trillion.
Borrowing in the category that covers autos and student loans increased by $10.8 billion. Borrowing on credit cards rose by $3.4 billion, only the second monthly increase in the past five months.
The Huffington Post
U.S. Consumer Debt Hits All-Time High: Borrowing Rises To $2.7 Trillion
Martin Crutsinger

6 comments:

netbacker said...

How come none of the MMT promoters focus on Private debt and the problems it is causing? I think a narration like "Our Government cannot go broke, but the people can and will if the govt does not act" would help.

paul said...

What???

We talk about that very thing here pretty much every day.

Dan Kervick said...

MMT always says that the government should spend to get to full employment, and that requires satisfying the public's desire to save in the currency. If the public is deleveraging, the desire to save is very high.

netbacker said...

I mean they don't expressly link these two debts together. The reason the private debts are high, esp with student loans, is because in the belief that the Govt is broke, we reduce funding to education and instead allow banks to make loans to students to go to college.

paul said...

"The reason the private debts are high, esp with student loans," - netbacker

I think this has more to do with our absurd policy of making our kids pay for education. This is privatization in the extreme.

And yes, the meme that "we are running out of money" or "can't afford it" helps promote these privatization schemes.

netbacker said...

Paul,
Exactly. We are brainwashed to believe that the govt that can get all the money it needs is somehow broke AND shouldn't be allowed to "borrow" But it is OK and preferred that for the people to borrow when can't get the same money.