The Burden of Debt

The stock markets were rocked again on Monday, and the need to stabilize the financial system is obvious. But the U.S. economy is never going to be really healthy until the country figures out how to provide work at decent pay for all, or nearly all, of the men and women who want to work.

We’ve been living for years in a fool’s paradise atop a mountain of debt. The masters of the universe on Wall Street lost all sense of reason, no doubt. But most of us have been living above our means through the magic of easy credit, ever lower taxes, ever rising property values, stock market bubbles and the gift of denial, which we used to assure ourselves that the bills would never come due. We’ve even put our wars on a credit card.

The burden of debt for a typical middle-income family, earning about $45,000 a year, grew by a third in just the few years from 2001 to 2004, according to the Center for American Progress. The reason for this unsustainable added weight was the rising cost of such items as housing, higher education, health care and transportation at a time when wages grew only slightly or not at all.

In other words, work was not enough.

--Bob Herbert