August 5, 2019 | IFA Staff
The American economy is breaking records, some good, some bad. The Bureau of Labor Statistics reported that a record number of people were employed in July 2019: 157,288,000. The unemployment rate was 3.7%, the same number as June 2019.
Those who work their land will have abundant food, but those who chase fantasies have no sense. (Prv 12:11)
Unfortunately, the level of consumer debt also broke records. According to the Wall Street Journal, consumer debt (not including mortgages) is now $4 trillion. This number is record-setting, even after adjusting for inflation. Although incomes have remained at the same level for the past two decades, the cost of college, houses, and cars have risen. Student debt is about $1.5 trillion. Auto debt is $1.3 trillion (up 40% in the last decade) and the average loan for a new car has increased to $32,187.
“In one sense, the growing consumer debt is a vote of confidence in the future. People borrowing money today expect to have the income tomorrow to pay it back. . . . But the debt pile is also an accumulated ledger of economic risk. It should be manageable so long as unemployment remains low. If job losses begin to rise, it would become unsustainable for some share of borrowers.”
The rich rule over the poor, and the borrower is servant to the lender. (Prv 22:7)
What do you think about the current economy? How is your financial situation in this economy?