Commentary
High expectations and disastrous monetary policy have put Americans into a vicious debt spiral.
In the first quarter of 2023, American household debt hit a record high of $17.05 trillion, about 73 percent of the nation’s GDP. One of the many issues with the high debt rates that Americans carry is that with rising interest rates, this heavy debt burden will become more difficult to bear. Americans have become used to borrowing, but that borrowing will now be more costly.
To make matters worse, 62 percent of people live paycheck to paycheck. To survive, they remain in a perpetual cycle of borrowing because they cannot afford the cost of living while also servicing their existing debt. In order to survive the recent years of inflation and rising debt, about 44 percent of Americans have begun working a side job of some type. Most people, once they are working two jobs, will be out of options if they find they still cannot afford to live….