U.S. Consumer Debt at Record Levels

In around the last decade in the U.S., there has been a particular theft of wages into a conversion of corporate profits. From about 1977 to 2007, the main story of income inequality there was upwards redistribution (theft) of income directly to higher-income professions. (See chapter 2 of the book Rigged for further data.) If wages hadn’t been largely stagnant over the last four decades (among other policy failures) for many workers, there wouldn’t be consumer debt of this magnitude. This is because stagnant wages and rising costs (such as U.S. university) force many to borrow more than they’d otherwise have to with higher incomes.

Also, $193 billion is a lot of money, and the reporting would be better if it and other figures were expressed in terms that most people could understand more easily. An increase of household debt by $193 billion is an increase of about $1529 per U.S. household.

Total household debt rose by $193 billion to an all-time high of $13.15 trillion at year-end 2017 from the previous quarter, according to the Federal Reserve Bank of New York’s Center for Microeconomic Data report released Tuesday.

Mortgage debt balances rose the most in the December quarter rising by $139 billion to $8.88 trillion from the previous quarter. Credit card debt had the second largest increase of $26 billion to a total of $834 billion.

The report said it was fifth consecutive year of annual household debt growth with increases in the mortgage, student, auto and credit card categories.

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