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Full-Text Articles in Income Distribution
Distribution And Debt: How Consumption And Household Debt Can Affect Economic Growth, Jeremy Rees
Distribution And Debt: How Consumption And Household Debt Can Affect Economic Growth, Jeremy Rees
Senior Theses and Projects
Over the past 30-40 years, consumer debt has grown substantially faster than income in the United States. As a result, consumption has grown fast relative to national income. The economic growth that we have experienced in the US economy has shown to be unreliable as demonstrated by the Great Recession in 2007-2008. By creating unstable growth, consumer behavior could be an explanation behind the recession as well as the cause of future economic downturns. This paper implements a new theory of consumption practices and tests for the stability of economic growth and sustainability of consumer debt by using a neo-Kaleckian …