Your World in Charts: Debtor Nation
This comes via Federal Reserve Bank of San Francisco economists Reuven Glick and Kevin Lansing's excitedly named paper, "U.S. Household Deleveraging and Future Consumption Growth."
Not good. The authors estimate that getting our debt-to-income ratio down to a more sustainable 100 percent would require the household saving rate to rise from about 4 percent currently to 10 percent by the end of 2018. This would, in turn, slow economic growth by a bit less than one percentage point per year. I say again, not good.
(Via James Hamilton.)
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