Record levels of private debts

(Ref. 319)
Problem Components
Policy issue area: Economics
Policy issue: Monetary system
Description: Stimulative budgetary and fiscal policies promoted a huge expansion of domestic spending.
Symptoms: Domestic spending expanded 60% over other industrial nations' spending the last six years; total non-Federal debt is now over $6 trillion; personal savings rates are the lowest since the Depression of 1929; United States became the world's largest debtor nation.
Causes: Reckless consumer and corporate spending, unwarranted by economic realities and borrowing against the future.
Cost of problem: -
Solution Components
Resources: Business and industry; Federal government (Congress and executive branch agencies).
Goal: 1. Gradually reduce consumption and speculative business borrowing
2. Bring ratio of total debt and gross national product (GNP) down to a sound level.
Program area: Financial resources development
Program-remedy: 1. Implement policies that will cause a reduction in consumer spending, and stimulate exports and personal savings
2. Expanding and vibrant economy to keep debts as a reasonable ratio of GNP.
Program-prevent: Better management of the economy and fiscal/monetary policies.
Cost of program: -
Beneficiaries: All who need to borrow money.

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