One Nation, Under Debt.

Well of course more is produced and traded as a result of population growth, automation, transportation logistics, trade relationships, and general efficiencies. The BOLDED part is just not true.

us-import-exports-divided-by-gdp.png


The point is that the decline in manufacturing employment isn't related to a decline in manufacturing, and WWII wasn't a good thing for U.S. exports.

Obviously, but he won't move past it. Since you're here, are there any other indicators, coupled with these debt numbers, that illicit concern?

I'm not saying that I'm concerned (I don't like the methodology used in the OP). Just saying that a high level of indebtedness can be a problem.
 
us-import-exports-divided-by-gdp.png

The point is that the decline in manufacturing employment isn't related to a decline in manufacturing, and WWII wasn't a good thing for U.S. exports.


What does any of this^^^ have to do with your completely incorrect claim that manufacturing has grown as a fraction of GDP since WW2?
 
What does any of this^^^ have to do with your completely incorrect claim that manufacturing has grown as a fraction of GDP since WW2?

Oddly aggressive response. Meant to say that we're selling more stuff, which was a refutation of the (disturbingly common) notion that the devastation of WWII benefited the U.S. economy by eliminating competition.
 
Is there a reason for a person to worry about other people's personal debt?

Absolutely. The amount of debt people (or companies) hold is highly indicative of their ability to withstand economic downturns. If most Americans have a large amount of debt, even small changes in the employment rate can really hurt the economy as people start defaulting driving them into bankruptcy and seriously hurting both small and major banks. In general, leverage increases risk and decreases flexibility, both bad things on a widespread basis.
 
I'm not saying that I'm concerned (I don't like the methodology used in the OP). Just saying that a high level of indebtedness can be a problem.

I didn't mean to suggest you were concerned. I was just trying to find out if there was anything to pair with the household debt numbers that might lead to concern, since the numbers all by themselves don't tell us anything (good or bad).

Absolutely. The amount of debt people (or companies) hold is highly indicative of their ability to withstand economic downturns. If most Americans have a large amount of debt, even small changes in the employment rate can really hurt the economy as people start defaulting driving them into bankruptcy and seriously hurting both small and major banks. In general, leverage increases risk and decreases flexibility, both bad things on a widespread basis.

Now that you've established that, any reason to be concerned presently? And how did you rule out that any rise in debt as a good sign (of increased consumer confidence)?
 
I didn't mean to suggest you were concerned. I was just trying to find out if there was anything to pair with the household debt numbers that might lead to concern, since the numbers all by themselves don't tell us anything (good or bad).



Now that you've established that, any reason to be concerned presently? And how did you rule out that any rise in debt as a good sign (of increased consumer confidence)?

You need to pair it with income I think, the link to the FED I provided on page one does that and from that result I am not overly concerned right now.
 
You need to pair it with income I think, the link to the FED I provided on page one does that and from that result I am not overly concerned right now.

Thank you. So the short answer to my original question would be "Not at this time."?
 
Now that you've established that, any reason to be concerned presently? And how did you rule out that any rise in debt as a good sign (of increased consumer confidence)?

I don't know that it's a problem right now, but it is worth paying attention to at all times (as are many other economic indicators). In terms of being a good sign...perhaps, but while it might reflect increased optimism it is, factually, a reduction in financial flexibility to take on debt and is therefore inherently risky.
 
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