Jay Evensen
  • Front Page
  • Opinions
  • Second Thoughts
  • Portfolio
  • Awards
  • About

The debt bomb just keeps ticking away

2/13/2019

0 Comments

 
Quick quiz: When was the following published in a major newspaper?
“While most have been worrying about the public debt and its unwieldy proportions, private debt too has been sneaking up on us … . The situation could make a readjustment in the case of a recession very difficult. It was the attempted liquidation through the market of a vast volume of private debt that brought on the 1929 debacle, at least in large part.”
You probably guessed it wasn’t written yesterday, or I wouldn’t have quoted it. But it could have been. Today’s problems have plenty of echoes from the past.
But this particular quote came from an editorial in the Los Angeles Times on March 1, 1952.
The editors were prompted by figures showing private debt at a combined $278 billion nationally. The national debt that year was $259 billion, as calculated by a website called thebalance.com.
It’s easy to get lost in figures, so I’ll try to keep this simple. With inflation, that year’s consumer debt would be about $2.6 trillion today, and the national debt $2.5 trillion.
Today, however, private debt is $13.5 trillion, as measured in the fourth quarter of 2018. The national debt just crossed the $22 trillion mark and continues to rise rapidly.
Those comparisons can be tricky because there are a lot more Americans today than 67 years ago and the economy is much bigger. It’s more instructive to see today’s numbers in the context of recent history. So chew on this: Household debt today is $869 billion more than its previous peak in 2008, when the great recession hit.  And the national debt grew by more than $30 billion so far this month alone.
The website bankrate.com conducted a survey recently that found 44 percent of American households have more in emergency savings than they owe on credit cards. If you think that’s good, it’s not. Last year the figure was 58 percent, and this year’s total is the worst in the survey’s nine-year history.
The same study found 29 percent have more credit card debt than emergency savings. Only 40 percent could come up with $1,000 or more in cash for an emergency, and 60 percent say they aren’t even prioritizing the need to pay off debt.
This, the website’s chief financial analyst said, is “an ominous indicator of the financial health among American households.”
It’s human nature: Prosperity breeds complacency, and when people feel complacent, they don’t give much thought to the future. If recent history has taught anything, it is that the culture of deficit spending, at home and in Washington, is impervious to jarring events. At least, it is to the sort of jarring events we’ve had so far in the 21st century.  
Ten years ago, a lot of people thought the culture had learned a lesson. We would keep our credit cards holstered, or at least keeping balances low enough to be easily paid off.
That was true for some who lost homes and jobs or had to make do on smaller salaries. But it was a temporary condition.
There is one more interesting comparison between 1952 and today. Back then, more people seemed to sounding warnings. They remembered the Great Depression.
Even a few years ago, Republicans were shutting down government in order to spur deals to minimize debt and possibly reduce the need to continually raise the nation’s debt ceiling.
Today, the complacency of prosperity has infected both parties. The recent shutdown was waged over how to direct more spending, not less.
Call it what you want: The ticking time bomb, the steadily growing fungus that threatens to eat us all, the hideous swamp creature that will come in the night and destroy all we have.The older people of my youth spoke of debt as bondage.
In past generations, conventional wisdom kept people from accumulating too much unsecured debt because a day of reckoning always comes.
Someone’s great grandparent likely wrote that editorial in 1952. Sure enough, a recession came a year later, just as one eventually will come in this age. The smart thing, for everyone but especially for the federal government, would be to reduce debt while the sun is shining.
As that old editorial said, not doing so could make weathering the next downturn difficult and painful.

​
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    RSS Feed

    Search this site


    Like what you read here?

      Please subscribe below, and we'll let you know when there is a new opinion.

    Enter your email address:

    Delivered by FeedBurner

    Picture

    The author

    Jay Evensen is the Opinion Editor of the Deseret News. He has more than 40 years experience as a reporter, editor and editorial writer in Oklahoma, New York City, Las Vegas and Salt Lake City. He also has been an adjunct journalism professor at Brigham Young and Weber State universities.

    Archives

    June 2025
    May 2025
    April 2025
    March 2025
    February 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012

    Categories

    All
    Campaign 2012
    Congress
    Crime
    Culture
    Iran
    Oil And Gas
    Poverty
    Steroids
    Taxes
    Utah
    Washington
    World Events
    World Events

    Links

    Deseret News
    Newslink
    Marianne Evensen's blog

Powered by Create your own unique website with customizable templates.
Photos from jamesjoel, DOWN ESPAÑA, garethjmsaunders, University of Salford, Adam Jones, Ph.D. - Global Photo Archive, marcoverch, See-ming Lee 李思明 SML, edgarzunigajr, Theo K, ActuaLitté, Mike Licht, NotionsCapital.com, Backbone Campaign, OIST (Okinawa Institute of Science and Technology), bradleygee, @sage_solar, sianiweston, makelessnoise, COD Newsroom, philozopher, Congressman George Miller, Jordi Bernabeu, edgarzunigajr, National Assembly For Wales / Cynulliad Cymru, simpleinsomnia, Mike Bonitz, Becker1999, manhhai, BiblioArchives / LibraryArchives, amira_a, Ken Lund, Bread for the World, r.nial.bradshaw, DearEdward, sinisterbluebox, denebola2025, thedoc31, ** RCB **, IQRemix, sandiegoduiattorney, Rob.Bertholf, Seluryar, Ben Sutherland, O.S. Fisher, Tony Webster, www.rubenholthuijsen.nl, Zachi Evenor, jonnwilliams, Lion Multimedia Production U.S.A., penjelly, jillccarlson, ADAM TAS IMAGES, UNMEER, DonkeyHotey, USDAgov, The Prime Minister's Office, Maicon Garcia, CountyLemonade, familymwr, Muffet, DonkeyHotey, tedeytan, KristineL761, penjelly, Leap Kye, sully213, NLNY, frankieleon, haven't the slightest, ljlandre, jalbertbowdenii, Rvs1966, Marion Doss, Vassilis Online, Dan Bock, Prestonbot, Frontierofficial, L. Bartha, educators.co.uk, Kelly Hunter, lindsayloveshermac, Michael.Jolley, dw_ross, Janitors, KAZVorpal, combusean, wuestenigel, apardavila, BodyWorn, MDGovpics, MHS Touchdown Club, JeepersMedia, Elvert Barnes, fred_v, CountyLemonade, mitchell haindfield, qbac07, David Holt London, Hoshi_sae, DonkeyHotey, aaronrhawkins, Ruth and Dave, CountyLemonade, Akademija Oxford, NASA Goddard Photo and Video, Chimpanz APe, huskyte77, GotCredit, sandiegoduiattorney, pacificpelican, streetsensedc, ell brown, Aaron Volkening, rgserapio, Asian Development Bank, paularps, ThoseGuys119, USDAgov, SIM USA, gnrklk, kthypryn, Zeitfixierer, vwcampin, regan76, frankieleon, Robert Couse-Baker, JoeInSouthernCA, SounderBruce, ThoseGuys119, CDC Global Health, Gage Skidmore, bunnicula, Fire At Will [Photography], Alexandre Prévot, Anth0ny Gale, vastateparksstaff, raphael.chekroun, Gerry Dincher, halseike, Prayitno / Thank you for (12 millions +) view, Gage Skidmore, infomatique, omarsalvatierragracida, Jerk Alert Productions, DonkeyHotey, Österreichisches Außenministerium, Photocapy, USDAgov, Taymaz Valley, jencu, Peter Krantz, WayShare, Mike Licht, NotionsCapital.com, gruntzooki, CountyLemonade, makelessnoise, Denise Cross Photography, Roadgeek Adam, Tony Webster, amy.gizienski, faungg's photo, makelessnoise, FolsomNatural, Loimere, free pictures of money, Exile on Ontario St, EvinDC, ell brown, kamirao, coachphatty, Keith Allison, Raido Kaldma, avrene, Shutterbug Fotos, Elvert Barnes, Andrew Feinberg, Tony Webster, danxoneil, GrandGeneralStormCommando, MShades, Joe Frazier Photo, Kurdishstruggle, Omranic, SounderBruce, Mike Morbeck, Got Credit, Scudamore's Punting Company, wuestenigel, r.nial.bradshaw, NIAID, torbakhopper, 81disasters, gaobo, John Haro, Metro Atlanta Transit Productions, foundin_a_attic, Sten Dueland, tedeytan, CarbonNYC [in SF!], Mike Licht, NotionsCapital.com, marcn, pburka, BBurchell Photography, wbaiv, heyexit, Phillie Casablanca, Neil T, LendingMemo, Elsie esq., Mike Licht, NotionsCapital.com, n4rwhals, WalterPro4755, railsr4me, JLaw45, Janitors, USDAgov, MarkDoliner, educators.co.uk, wuestenigel, Franco Folini, JeanneMenjoulet&Cie, WayShare, Gamma Man, ninara, Bob Linsdell, H.KoPP, Vegar S Hansen Photography, denebola2025, Aircaft @ Gloucestershire Airport By James, Talusss, LaBellaVida, wwarby, easysentri, evelynquek, Ken Lund, rdmsf, North Charleston, t--h--s, denisbin, stcyshn, Tim Evanson, KAZVorpal, jurvetson, Simon_sees, thisisbossi, Photographing Travis, Phil Roeder, rich701, BPPrice, Kadano, quinnums, MoneyBlogNewz, wickenden, Lost Albatross, Bernd Thaller, Dave Snowden, CountyLemonade, au_ears, annikaleigh, magerleagues, MICOLO J Thanx 4 725k+ views, DonkeyHotey, progre, frankieleon, quinn.anya, Ryan Hallock, jsnsndr, abominable_eagle, Alan Cleaver, aflcio, CDC Global Health, NASA Goddard Photo and Video, jellygator, Jason M Parrish, USDAgov, Mystery in the mail, CJS*64 "Man with a camera", BenDibble, Joybot, JoeInSouthernCA, Pawel Maryanov, kennethkonica, mitchell haindfield, USDAgov, stevebott, Tyler Merbler, NCDOTcommunications, Exile on Ontario St, CBP Photography, jboe2009, WWYD?, liveoncelivewild, vaxomatic, Hunky Punk, tedeytan, GotCredit, Find Your Feet, Fibonacci Blue, Nicholas_T, Sergey Galyonkin, shock264, Georgie Pauwels, EU Humanitarian Aid and Civil Protection, adifferentbrian, Seluryar, Riik@mctr, Andrew Moura, Michael.Jolley, kellybdc, inkknife_2000 (7.5 million views +), JeepersMedia, TheTruthAbout, Anton V. Larionov, HloomHloom, surreynews, {Guerrilla Futures | Jason Tester}, Secretary of Defense, The All-Nite Images, FootMassagez, You're In My Light (jerrysEYES), BLMOregon, Achilli Family | Journeys, Gerry Dincher, Ken Lund, Triple-green, yourbestdigs, Richard Elzey, Prestonbot, automobileitalia, Fora do Eixo, mary_gaston22, bk2000, AutrementDit Toronto., Elvert Barnes, dualdflipflop, mikemacmarketing, Hoshi_sae, torbakhopper, eburniche3, Mike Licht, NotionsCapital.com, Abeeeer, Rob.Bertholf, Don Hankins, dannielleblumenthal-thinkbrandfirst, USDAgov, wuestenigel, Michael.Jolley, xiquinhosilva, Images_of_Money, OregonDOT, [email protected], gregfriese, SounderBruce, Kevin Johnston, Imagens Evangélicas, loop_oh, Magic Robot, funktionhouse, Gage Skidmore, Yosuke WATANABE, Mark Scott Johnson, F43r1x, ljlphotography, dsearls, David Holt London, ER24 EMS (Pty) Ltd., Images_of_Money, roberthuffstutter, monkeyz_uncle, zemistor, fred_v, DonkeyHotey, Obama-Biden Transition Project, CedarBendDrive, nestor galina, brianholsclaw, ryochiji, thisisbossi, Bright Meadow, richard winchell, Svadilfari, Edward M Johnson, NavaInstigator>>>, VarsityLife, ourbethlehem, Mr. T in DC, mwanasimba, Franco Folini, qnr, Dougtone, LightinkLibrarian, Obama-Biden Transition Project, The Official CTBTO Photostream, AstroSamantha, MoreSatisfyingPhotos.com, The Shopping Sherpa, The National Guard, craigdietrich, kamshots, ewan traveler, World Can't Wait, Gila Forest, kaffeeringe, jgurbisz, gruntzooki, Supermac1961, thievingjoker, Rod Waddington, PlayfulLibrarian, Philip Taylor PT, AlicePopkorn, Raido Kaldma, dan taylor, Cannabis Culture, surreynews, cliff1066™, Lars Plougmann, ANZ Cluster Munition Coalition, Tracy O, www.davidbaxendale.com, Rob Barrett Photography, BuzzFarmers, Political Graveyard, ojbyrne, US Mission Geneva, inkknife_2000, ubiquit23, Dan Bock, irrezolut, Frankie Roberto, Abode of Chaos, KOMUnews, John Pavelka, ElectronicFrontierFoundation, DonkeyHotey, carlos.a.martinez, pnoeric, ARTS, ubiquit23, Ken Lund, Tony Fischer Photography, brewbooks, || UggBoy♥UggGirl || PHOTO || WORLD || TRAVEL ||, blackplastic, cristee12, Shan213, OPEN Sports, Korean Resource Center 민족학교, cocoate.com, karola riegler photography, 4nitsirk, gnuckx, citizenactionny, rezsox, Jeffrey Beall, david_shane, Mrs. Gemstone, Erik Daniel Drost, stockicide, kadluba, joaquinuy, quinn.anya, ReneS, StockMonkeys.com, loop_oh, Steve Tolcher, Iqbal Osman1, kiwanja, rawmustard, Anthony J, El Bibliomata, International Information Program (IIP), Alex McClung, danielmoyle, "G" jewels g is for grandma, slgckgc, Images_of_Money, fivedollarones, x1klima, Gabriel GM, redjar, andertoons, gvgoebel, .Larry Page, Mr. T in DC, chintanamin, KatVitulano Photos, Ken Lund, adactio, shroncin, RobotSkirts, jeffschuler, VinothChandar, Joybot, neurollero, erasergirl, Matías Garabedian, viviandnguyen_, Digitale Gesellschaft, markhillary, mkphotonet, jgBeachcomber, jimbowen0306, Franco Folini, dno1967b, jurvetson, MargaretNapier, Elvert Barnes, muddum27, [email protected], Frontierofficial, dsearls, Shamanic Shift, Andrew Feinberg, Prayitno/ more than 2 millions views: thank you!, playerx, FSonne-pennstate73, The Daring Librarian, Vicky Hugheston, thenestor, Dusan Simonovic, David Reber's Hammer Photography, Justin A. Wilcox, Hollywood_PR, AR McLin, BrownGuacamole, Gage Skidmore, zache, Medill DC, wheat_in_your_hair, patricialow, Matt McGee, Bill Stanley, jerekeys, cletch, 6SN7, killrbeez, شبكة برق | B.R.Q, colros, Eric Kilby, kenteegardin, Mike Licht, NotionsCapital.com, Erik Daniel Drost, Edward Dalmulder, chris friese, simone.brunozzi, Daquella manera, stevebott, stevendepolo, DFID - UK Department for International Development, justinmatthew21, a.drian, cudmore, Extra Ketchup, wbaiv, Loren Javier, swanksalot, CountyLemonade, indigoprime, Bryn Pinzgauer, Paul Robertson, Gruenemann, r.nial.bradshaw, Sam Beebe, Ecotrust, Fibonacci Blue, .jocelyn., RESchroeder, MoneyBlogNewz, matze_ott, swskeptic, peterolthof, Charleston's TheDigitel, Tony Webster, Themeplus, sDanOoO, CountyLemonade, Our Dream Photography (Personal), anitakhart, Waiting For The Word, Matt-Zimmerman, Dougtone