The Political Inquirer

This graph- and this discussion- says it all:

It demonstrates that the average American- through personal decisions they have made- has continued to grow the amount of non-housing related debt they have taken on. I began increasing exponentially over the past decade since the bust of the dot com boom (where false income paid for large consumerism appetites). 

The average American has used its credit cards and personal loans to buy:

• flatscreens and electronics they can’t afford
• winter vacations and Vegas trips their incomes don’t justify
• the Escalade instead of the Caravan, the Lexus instead of the Toyota
• the boats, the ATVs, the motorcycles
• the private university instead of the public
• innumerable private coaches, lawn and maid services

The Average American has learned a bad lesson from the half-century of fiscal irresponsibility from the federal government, a level of irresponsibility the public has tolerated and supported with its votes.  The private sector has massively expanded on that lesson and grown falsely dependent on a debt-financed lifestyle.  ‘Enjoy now and pay much more later’ has grown to a point our grand-children will be suffering it as non-manufacturing debtor nation largely owned by foreigners and with a worthless currency.  The best and brightest will be emigrating elsewhere and our primary export will become military capacity and technology as a mercenary nation.

Can this be prevented?  Extremely doubtful, because the problem exists in the habits and denial of the vast majority of Americans.  Of course, many will try to blame anything but their own lifestyle: the government (which is precisely the way they tolerate it), certain foreign countries (all of which seem to practice better public and private fiscal responsibility than we do), their neighbors (but not them),  But, as in alcoholism, the individual that denies their problem cannot be helped.

Myself?  We bought half the house of people with like incomes and are paying off the 15 year loan early, have not carried ANY credit card debt for 23 years, haven’t had a car payment in 4 years (paid cash for the last new one).  In short, we have lived below our means for decades to gain wealth.  And if you think my family is going to stick around and turn our money over to people who take out second mortgages to pay off credit card debt, then pile up another $20K on them, you are sadly mistaken.  We fortunately have international options and will make use of them, rather than stick around and pay for the stupidity of the majority.   As much as I love this country, it cannot be saved from itself when it doesn’t want to be.