Household Debt as a Percent of GDP

I compiled this chart about 2-3 years ago and thought it worth of an update. Household debt includes not just credit cards, but mortgages as well.


Of the many things that will bring down this country, Americans' desire to spend more than they make will be one of the key ones. Household debt is now at 97% GDP. We could all work one year and (assuming the government doesn't tax us, nor that we'd eat or spend any of our money on anything) then we could pay back our debts.

What's sad however is that this is even worse THAN THE GOVERNMENT! Federal debt as a percent of GDP last I checked was at about 48%. The government is a less voracious spender of money than the American public! American consumers and households are on par with the Italian government and it's knack for deficit spending and racking up debts.

Not to mention, as I've mentioned before, with all the Baby Boomers retiring shouldn't this figure be declining? You know, that as you approach retirement you'd pay off all your debts so you don't saddle future generations with yours? Though I don't doubt for a second it is my generation that is the primary culprit in skyrocketing this figure up since 2001.

And people ask me why the dollar is dropping.

Sheesh.