Comments on: American Debt is No Accident

By: David

David — Fri, 29 Aug 2008 21:48:10 +0000

Frank – I agree with you wholeheartedly.

By: Frank Staheli

Frank Staheli — Fri, 29 Aug 2008 21:31:54 +0000

I see 20-somethings on the freeway all the time with brand new Ford F-350s towing brand new camping trailers towing another trailer with 3 four-wheelers on the back. My first reaction is "Man I want to work where that guy's working!" But in reality, probably none of that booty is even close to paid for. It's unfortunate that (at least members of the LDS church), instead of paying attention to what Gordon B. Hinckley said 10 years ago, are going in the opposite direction--getting further and further in debt. Part of his observation and warning:

We have witnessed in recent weeks wide and fearsome swings in the markets of the world. The economy is a fragile thing. A stumble in the economy in Jakarta or Moscow can immediately affect the entire world. It can eventually reach down to each of us as individuals. There is a portent of stormy weather ahead to which we had better give heed. I hope with all my heart that we shall never slip into a depression. I am a child of the Great Depression of the thirties. I finished the university in 1932, when unemployment in this area exceeded 33 percent. I repeat, I hope we will never again see such a depression. But I am troubled by the huge consumer installment debt which hangs over the people of the nation, including our own people. In March 1997 that debt totaled $1.2 trillion, which represented a 7 percent increase over the previous year.

By: David

David — Wed, 20 Aug 2008 16:31:03 +0000

I think that there is one primary factor at play and that’s the relentless drive for more. Individuals want more money, more stuff, more time, etc. Government, economists, businesses, and banks want more GDP, more spending, and a larger money supply (by any means necessary).

I’m not opposed to having, creating, or wanting more, but I am concerned when that becomes the ultimate goal in society.

By: Reach Upward

Reach Upward — Wed, 20 Aug 2008 16:02:43 +0000

There is no doubt that we are a much more mobile society than we once were. Moving frequently reduces equity in general due to the costs of buying, selling, and moving. It sounds like there are multiple factors at play here.

By: David

David — Wed, 20 Aug 2008 15:51:09 +0000

Percentages don’t change when the value of the dollar fluxuates – that drop from 70% ownership to 50% ownership is that number that bothers me the most. Not only does it suggest an increase in debt, but also a decrease in stability. People are probably not setting down roots and investing in the communities they live in.

By: Tom

Tom — Wed, 20 Aug 2008 04:13:50 +0000

… and we have more people, and the value of the dollar hasn’t remained constant, so the (still significant) increase seems even higher. (I have the same complaint when people talk about public ed funding.)

I strongly believe your main point is still accurate, but the numbers make it seem worse than it is.

By: Reach Upward

Reach Upward — Tue, 19 Aug 2008 22:57:01 +0000

“we are faced with a debt that we are going to hate paying off”

Most Americans — and certainly politicians — don’t think they will ever have to pay it off. They think they have successfully foisted it off onto future generations.

Part of the reason we owe a lot more on our houses is that the average square footage of living space per person has also risen dramatically during this period. The average American is living in a much larger home. The payment for that extra space has to come from somewhere.