Wages and Debt

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sv133's picture
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Joined: Feb 4 2009
Posts: 2
Wages and Debt

Could someone please help me with this?  I have been aware for some time now of our mounting debt problem, both at the national and consumer levels, but I always thought the problem resulted from wrongheaded policies and could have been avoided.  For example, rather than continue to increase the budget deficit and the national debt, the government could have raised taxes (tax and spend, rather than borrow and spend), cut spending or a combination of both.  At the consumer level, wages have failed to keep up with productivity over the last 20-25 years, and consumers have filled the gap by going into debt - - demand for products has been fueled by consumer debt (credit cards, home equity loans, etc.) rather than wages. Now, after viewing and reading Chris' materials as well as the writings of others (such as Ellen Brown, Richard Cook and the wonderful materials at http://www.moneyaswealth.blogspot.com/), it seems to me that even if wages had kept up with productivity and the government had taken efforts to reduce the deficit and national debt, it wouldn't have mattered.  Because all money is debt, wages represent debt from somebody to someone somewhere else up the chain in the system, and our debt problem would still be just as bad.   Do I have this right?   I feel like I'm missing something but I'm not sure.  Thanks.


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