US Debt Load Falling at Fastest Pace Since 1950s

Wipe our Debt (Photo credit: Images_of_Money)

US debt load falling at fastest pace since 1950s.Total domestic — public and private — debt as a share of the economy has declined for 12 quarters in a row after surging over the previous decade. Everyone knows America has too much debt. What they don’t know is that things are getting better, not worse.

Little by little, our economy is reducing its debt burden, slowly repairing the damage caused by 10, 20 or 30 years of excess.

If you want to know why economic growth has been so tepid, here’s your answer. Four years after the storm hit, the economy is still deleveraging. And it’s very hard for any economy to grow when everyone is focused on increasing their savings.
The rapid rise in federal debt over the past four years has distracted us from the big picture. The level of public debt is indeed worrisome, but it’s not as big a worry as the economy’s total level of debt — public and private....Continue to read.

Related articles

• Rex Nutting: U.S. debt load falling at fastest pace since 1950s (marketwatch.com)
• US consumer cut back on credit card use in April (miamiherald.com)
• U.S. credit card spending growth falls sharply (cbc.ca)