Americans Are Dying With An Average Of $61,500 In Debt

[AZJoe]

Median Family Debt to Money Ratio Worst since 1962

[Krugminator2]

Much of this stems from our corrosive monetary system:

I would estimate it is 2% monetary system and 98% on the general attitudes of saving and investing. Inflation is low. The savings rate is also low. People don't invest the way they should. People want stuff and think the government is here to bail them out.

For the people blaming the monetary system, how do you account that the savings rate was much higher in the late 70's when inflation was out of control? Monetary policy has been far less inflationary the last 30 years than it was during the previous 30.

[oyarde]

Median Family Debt to Money Ratio Worst since 1962

I bet though that 1962 debt was better debt than todays debt . Probably only mortgage debt .

[devil21]

I would estimate it is 2% monetary system and 98% on the general attitudes of saving and investing. Inflation is low. The savings rate is also low. People don't invest the way they should. People want stuff and think the government is here to bail them out.

Yeah, it must be the people and not the system. It's not like people have way over half their earnings taken by various taxes and fees. Also, you mean price inflation is low in some sectors and most of the inflation has been hidden through various means like fillers and portion games in food. Monetary inflation is blown the hell out, however.

For the people blaming the monetary system, how do you account that the savings rate was much higher in the late 70's when inflation was out of control? Monetary policy has been far less inflationary the last 30 years than it was during the previous 30.

Wages today are lower than the 70's, when adjusted for monetary inflation since then. Minimum wage has barely risen even though national debt is exponentially higher and cost of living expenses (rent, food, utilities, etc) are all much higher cost. All that money went somewhere and it wasn't into the "people's" pockets. I don't argue that people blow money on crap sometimes (see: iphones) but it's hard to save anything when living paycheck to paycheck. Dunno about you but my cable bill just went up again, car insurance jumped 20% for no discernible reason and imported food is skyrocketing. Those are examples off the top of my head.

[AZJoe]

I bet though that 1962 debt was better debt than todays debt . Probably only mortgage debt .

Yes, good point. The debt then was probably very little consumer credit. Very few people in 1962 had credit cards. If you did not have money to purchase something you put it on layaway, where the merchant held it aside as you made payments and only took the item once it was fully paid. Neither Mastercard nor Visa even existed in 1962. Mastercard debuted in 1966 as Interbank Card/Mastercharge, and Visa likewise debuted in 1966 as BankAmericard.

[Origanalist]

Yeah, it must be the people and not the system. It's not like people have way over half their earnings taken by various taxes and fees. Also, you mean price inflation is low in some sectors and most of the inflation has been hidden through various means like fillers and portion games in food. Monetary inflation is blown the hell out, however.



Wages today are lower than the 70's, when adjusted for monetary inflation since then. Minimum wage has barely risen even though national debt is exponentially higher and cost of living expenses (rent, food, utilities, etc) are all much higher cost. All that money went somewhere and it wasn't into the "people's" pockets. I don't argue that people blow money on crap sometimes (see: iphones) but it's hard to save anything when living paycheck to paycheck. Dunno about you but my cable bill just went up again, car insurance jumped 20% for no discernible reason and imported food is skyrocketing. Those are examples off the top of my head.

I must spread reputation, blah blah blah

[loveshiscountry]

When I die I want to be hundreds of thousands in debt. One can lead, follow, or get out of the way. I choose to lead.