Thom Hartmann: Private Debt – Not Government Debt – Will Destroy America

[marmar]

from truthout:


Private Debt – Not Government Debt – Will Destroy America

Thursday, 14 February 2013 15:15
By Thom Hartmann, The Daily Take | Op-Ed


There are two kinds of debt. One that’s relatively harmless. And one that can destroy us all.

There’s public sector debt – or government debt – which is over $16 trillion. This is the sort of debt that politicians scream and holler about when they demand austerity.

And then there’s private sector debt – the debt owned by you and me and millions of Americans across the nation in the form of credit cards, home and auto loans, along with America's corporate debt. This sort of debt doesn’t seem to bother politicians at all, even though total private sector debt is $38 trillion, more than double government debt.

Now here’s what you need to know. Public sector debt is not a problem at all. Our national debt, despite the big number, is not a threat to the nation. .................(more)

The complete piece is at: http://truth-out.org/opinion/item/14566-private-debt-not-government-debt-will-destroy-america

[Cary]

1. If minimum wage had kept up with growth in productivity it would be about $21.75

If the average household income kept up with the 1970s it would be double what it is today, at over $90,000. If college education costs were as reasonable as they were when I went to school, kids wouldn't be graduating with hundreds of thousands of dollars in debt.

In other words the middle class is getting squeezed out of existence. The transition was facilitated by the easing of credit.

In the meantime the economy has grown so there's no excuse for this. "Conservatives" hate WE, THE PEOPLE. The fleecing of the middle class is intentional. It's part of their coup de etat.

[libtodeath]

3. Returning us to serfdom is what it amounts to.

[ananda]

2. I understand that the student loan bubble is about to burst..

.. and will have a severe effect on the economy.