Household Debt Bubble Research Paper

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1. The Household Debt Bubble Abstract: Comments on the decline in real wages & paradoxical rise in consumption in the US, arguing that the potential exists for particularly negative consequences. Data on the family debt burden indicate the class nature of the distribution of household debt, with mortgages, credit cards, & installment buying the areas of highest debt for most families. It is argued that low-income families are prime targets for predatory lending, eg, payday loans, subprime mortgage lending. Of greatest macroeconomic significance is home-secured borrowing, & it is contended that the housing bubble & strength of consumption in the economy are linked to the "household debt bubble," which could burst if interest rates rise & housing prices stagnate or decline. A step up in business investment in the US is required to forestall economic crisis. Further, the US economy's problem lies in the pursuit of wealth by a few at the expense of the population as a whole; only a radical reconstruction of society can arrest this. Tables, Charts. D. Edelman Foster, John B. 2006. "The Household Debt Bubble." Monthly Review 58(1):1-11. 2. Sticking It to…show more content…
Here, data obtained from 2 samples of 75 undergraduates are used to examine: (1) perceptions of social information in credit card use; & (2) agreement between the meaning of these cues & the actual social identity of people who use that cue (credit card). Differing credit cards were found to have specific & measurable differences in social meaning. However, these social perceptions were not found to be related to actual differences in social identities of individuals who use the specific credit cards. These findings fit with a range of research which shows that while products have meaning, the relationship between products, meaning, & individual identity is not a simple one. 2 Tables, 23 References. Modified

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