Debtor Nation
— Doris from New York City. Listen to more of your stories or add your own »
The United States is a nation built on debt. We spend far more than we earn. We save very little or nothing at all. Collectively, we owe about $14 trillion — roughly equal to the entire economy's yearly output. View graphs and explore data about our debt »
Our debt seemed acceptable to many of us before, when the economy looked like it had an endless upward trajectory. Now, as the economy worsens, credit tightens, and more and more companies lay off workers, debt is crushing people. More and more people are delinquent on their credit cards. Nearly 5,000 Americans filed for bankruptcy every day last month.
The Takeaway took a hard look at our debt problems in November 2008, talking to experts, financial advisers and people who are in debt about how we got into this mess, how we can get out of it as individuals and a nation, and the ripple effects on our lives, country and economy.
How we got here
Our guest: Ronald Wilcox, a professor at University of Virginia’s Darden School of Business and author of "Whatever Happened to Thrift?: Why Americans Don't Save and What to Do About It."
Web-only! Wilcox's blog post, "Prodigal sons?"
The housing crisis and American debt
Our guest: Richard Green, director of the University of Southern California's Lusk Center for Real Estate.
Credit, bankruptcy and the future of banking
Our guest: Elizabeth Warren is a professor at Harvard Law School. Warren specializes in consumer bankruptcy and commercial law. She is the co-author of "All Your Worth: The Ultimate Lifetime Money Plan
America as a debtor nation
China now owns more U.S. public debt than any other nation — about one out of every 10 debt dollars — a reflection of its growing global economic influence. Blame wars, bailouts and stimulus plans — all big-ticket and unbudgeted expenses. With China buying our debt, it is, in effect, boosting the U.S. dollar relative to the yuan, making imports cheaper (and more attractive). The United States has imported five times as much as it has exported to China this year.
Our guest: Kevin Phillips is author of "Bad Money: Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism" (2008).
Dealing with debt
Our guest: Alvin Hall is a financial educator and author.
Web-only! Alvin Hall answered your questions about debt.
— Financial educator and author Alvin Hall. Read the Q&A »
We’re still sharing your stories on how debt has affected your life. Leave a comment, give us a call at 1-877-8-MY-TAKE or email us at mytake@thetakeaway.org to let us know how you got into debt, whether you're in danger of losing your job or your house, or what debt is preventing you from doing. We also want to hear your questions about getting out of debt.
once again, the staid banker tells the consumer that they have to take on more responsibility- read between the lines: consumer this is all your fault. Damn you, you fell for our bogus financial products.
I took on all the responsibility for my retirement, it's called a 401k and whoopie, it's worth nothing. Thank you, Mr. Banker, can I act responsibly again and give you another bail out?!
Posted by Mike, 9:02 a.m. Wednesday, November 19 2008 Permalink
Won't anybody just tell the truth? We live in a culture based on greed and moving product. Easy credit is the foundation upon which this culture is built. I think someone ought to make the link between our credit crisis and the end of usury laws which permit banks and credit card companies to profit enormously by encouraging their customers to over spend.
Posted by Tal Yarden, 9:48 a.m. Wednesday, November 19 2008 Permalink
Question for Alan: Living apart from my husband. Credit report indicates he has thousands in credit card debt and a low-paying job that's at risk. I'm pretty sure I already know the answer, but in a community property state, any way to save myself from his debt short of divorce?
Posted by Marie, 11:37 a.m. Friday, November 21 2008 Permalink
The following letter was written in jest, but has anyone had a better idea?
Dear Secretary Paulson.
I suggest that to improve the economy, adults and children should send "Dear Secretary Paulson" instead of "Dear Santa" letters. You could then allot funds for the gifts, and the hiring of shoppers, gift wrappers and deliverers. Requests for automobiles should only be honored if they are for GM, Ford, or Chrysler models.
Thus, a disastrous decrease in consumer spending for Christmas would be averted, and unemployment decreased. Even after Christmas, this boom could be continued by the hiring of personnel to handle returns and exchanges. And, if next year the economy still needs a boost, the same policy could be applied to Valentines Day, Easter, Mothers Day and Fathers Day. But, hurry Mr. Paulson, after Thanksgiving there are only 26 shopping days until Christmas.
Sincerely,
Al Kaufman
Posted by Albert Kaufman, 8:39 a.m. Tuesday, November 25 2008 Homepage Permalink
Your show about underemployment mentioned that CA gives unemployment benefits to part-timers. What you didn't mention is that CA has more part-time employees because it has a health insurance mandate that requires employers to pay health benefits or into an insurance pool for full-time employees. The unintended consequence of this, which my daughter, who graduated from Berkeley last May, has discovered, is that employers are willing to hire only for up to 30 hours a week. This way they can avoid paying for health care benefits.
Posted by Deborah , 9:36 a.m. Thursday, December 4 2008 Permalink
Listen
- All I want for Christmas (12/24/2008)
- New Year's Day food traditions with the Lee Brothers (01/01/2009)
- Nothing to fear, maybe (01/07/2009)
- 10 Tips: How to recover from holiday clutter (12/29/2008)
- A speculative look at what's ahead in the year in sports in 2009 (01/01/2009)
- Carnegie Hall: 2009 is the year of the multimedia opera (01/02/2009)
- NASA's future under the Obama administration (01/02/2009)
- Fifth graders suggest books for President-elect Barack Obama's reading list (11/14/2008)
- Shop(lift)ing for the holidays (12/23/2008)
- It IS about the bike: Ryan Bowen's cross-country journey to the inauguration (01/05/2009)
The show is a co-production of WNYC Radio and Public Radio International,
in collaboration with The BBC World Service, New York Times Radio and WGBH Boston.
Posted by Alan Harvey, 7:18 a.m. Monday, November 17 2008 Homepage Permalink