Saturday, January 21, 2017
The American Debt Trap
Most of the comments in the media about a "debt trap" refer to the rise in government debt. The source of these comments is typically from Republicans who want to cut government spending on programs that do not benefit them or their rich donors. This article takes a different slant. It describes the problem facing many millennial"s. They are the most indebted generation in our history. Student loans to finance a college education is one of their biggest debt burdens. Some of that debt is the result of cuts in state spending on state universities. Students are forced to take out loans so that state governments can reduce state taxes. In any case, the debt trap reduces the options of indebted millennial"s in many ways. It is not good for them or for the economy. Options are valuable but they are a hidden cost of the debt trap.