The Household Debt to GDP Ratio is 100%. That means the average family has as much debt (mortgages, auto loans, credit card debt) as they earn in a year.
For a most of the 20th century, the Household Debt to GDP Ratio’s been under 50%. The last time it reached 100% was 1929. Note the twin peaks in following graph.
This suggests that our current crisis is about something much simpler than credit default swaps, derivatives, or toxic assets. It might be that the significant increase in the standard of living we’ve seen over the past twenty five years was not brought about by an increase in the median wage. It’s been brought about by an increase in the median household debt.
We can’t just keep borrowing more and more forever and paying it back is painful.
Here’s a link to an excellent easy-to-understand radio program on the whole banking mess:
http://www.thisamericanlife.org/Radio_Episode.aspx?sched=1285
Should we trust our ideological guts to make our public policy decisions for us? Or should we examine the relevant empirical data and use reason to come up with the most effective solution to the problems we face? Truth, Damn Truth, and Statistics crunches the numbers to help you make reasoned decisions on the most important political decisions of our time.
I’m sure it won’t be on the front for more than a few hours so here’s a direct link:
Commentary: GOP should ask why U.S. is on the wrong track
I recommend reading the full article, so I won’t detract from it by pasting here.
CNN let him have a good deal of space and he used […]
Bloomberg reports:
The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.
Fed Chairman Ben S. Bernanke and Treasury Secretary Henry Paulson said in September they would comply with congressional demands for transparency in a $700 billion […]
Click to join the discussion: Vote up if you think Ron Paul, not Palin, should be GOP’s future
For those who are not familiar with the site, Reddit is like Digg, but with actual intelligent conversation. (It’s an open source project managed by the folks at Reason Magazine, a libertarian-leaning publication.)
The Conservative Political Action Conference will be one of the first major events of 2009 that will find the Republicans seeking a direction for the party.
You’ll recall that this is the event at which Mitt Romney dropped out last year. John McCain was booed emphatically and Romney won the straw poll despite having dropped out […]
Paul was interviewed Friday on ‘American Morning.’ The topic of discussion was the bailout. Nothing new was really said but the interview did end on this more hopeful note, one which it seems Dr. Paul is trying to work into more of his public appearances.
Chetry: I know what you’re saying. Staff members writing on […]
No, not that good doctor… a different one.
This is something I found on the website for a local legal newspaper, The Record. They report that, “Dr. Randy J. Jung filed the request for a restraining order Friday, arguing Congress and Bush exceeded their constitutional authority when passing H.R. 1424, otherwise known as the bailout bill.”
Here […]
(Hello again, everyone. I’m going to start posting some news again and see if people are interested in reading it. Let me know if I’m posting things that you would have found without me pointing them out.)
The candidates Paul endorsed have been mentioned quite a bit on liberty-minded blogs. They are Richard Matthews, Mike Hargadon, […]
I became aware of the announcement through CNN:
WASHINGTON (CNN) – Texas Rep. Ron Paul announced Thursday he is suspending his bid for the Republican presidential nomination to focus his time on building an organization to help recruit and elect “limited government Republicans.”
“We want to elect constitutionalists, limited government Republicans across the country at the state […]
Ron Paul will be on the Situation Room on CNN Friday, June 13th and the show is asking for user-submitted questions.
From CNN:
Wolf Blitzer will interview Republican presidential candidate Ron Paul this Friday. What would you ask him?
Visit the iReport site to submit your question.
Ask him if he were president would he appoint Cafferty as Press […]
From the official blog:
Ron Paul Grassroots A Gem in Idaho
ARLINGTON, VIRGINIA – Presidential candidate Ron Paul received 29,741 votes, or 24 percent, in the Idaho Republican primary yesterday, making it his strongest Republican primary showing to date. Dr. Paul made one stop in the Gem State during the month of April.
“Dr. Paul’s grassroots supporters in […]
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