According to Bob Herbert,
“We have an economy that is based on increased debt,” said Mr. Hinchey. “The national debt is now slightly above $9 trillion, and ordinary working people are finding that they have to borrow more and more to maintain their standard of living."Wow... Personally, I prefer to live below my means. If that's the average then "unsustainable" may be an understatement.
“The average now is that people are spending close to 10 percent more than they earn every month. Obviously, that can’t be sustained.”
I assume that this pattern has its roots in home equity lending. Spending your home equity to keep your head above water isn't particularly wise, but when home values are flat or falling, is it possible to continue to spend at that level and avoid disaster? And if we're talking credit card debt....