David Brooks once again finds the head of the nail and hits hard. The debt and spending problem in this country will be ruinous unless social norms of savings and frugality can be reestablished. The credit card debt statistics he quotes are astounding.
I have always maintained that our education system has long been remiss in its failure to teach basic economics in school. everywhere in our society we are exposed to the charlatans of the 'have it all; have it now' gospel. It's no wonder our social norms and values are sliding downhill.
One of our biggest culprits, of course, is the Federal government which will/can not restrain spending. They should be setting the example, and, of course, they are...the worst one possible.
Have we lost fiscal discipline? Read David's full column at the link below.
The deterioration of financial mores has meant two things. First, it’s meant an explosion of debt that inhibits social mobility and ruins lives. Between 1989 and 2001, credit-card debt nearly tripled, soaring from $238 billion to $692 billion. By last year, it was up to $937 billion, the report said.
Second, the transformation has led to a stark financial polarization. On the one hand, there is what the report calls the investor class. It has tax-deferred savings plans, as well as an army of financial advisers. On the other hand, there is the lottery class, people with little access to 401(k)s or financial planning but plenty of access to payday lenders, credit cards and lottery agents.
The loosening of financial inhibition has meant more options for the well-educated but more temptation and chaos for the most vulnerable. Social norms, the invisible threads that guide behavior, have deteriorated. Over the past years, Americans have been more socially conscious about protecting the environment and inhaling tobacco. They have become less socially conscious about money and debt.
Op-Ed Columnist - David Brooks - The Great Seduction by Debt - Op-Ed - NYTimes.com
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