The US Recovery Is Funded By New Consumer Debt Because Of Negative Wage Growth

This article describes the growth in household debt during our recovery. It is almost at the peak that it reached during the recession. Consumer spending is being funded by debt because there has been no increase in real income during the recovery. We have more jobs but they pay less than the jobs that were lost. The economy has not grown as fast as it has done historically after recessions either. We have an oversupplied global economy with inadequate demand. It is also troubling to see student loan debt reaching the $1 trillion level. Repaying that debt will slow down new household formation and it will decrease future demand for products and services.