From Owners to Debtors in Fifty Years
How did America go from being a nation of owners to a nation of debtors in 50 years?
Long term mortgage debt. We owe a lot of it. Far too much of it.
How did that happen? What caused this delusional behavior?
Marketing. Lots of it. Washington bureaucrats and Wall Street bankers have spent decades and trillions of dollars changing getting us to think that long term debt is a good thing.
Of course, long term debt isn’t a good thing. It runs against our cultural heritage as Americans, because it prevents economic independence. In contrast, long term mortgage debt makes us economically dependent.
Not only that, the proliferation of long term mortgages has made our housing market a leveraged and speculative gamble rather than the sound investment it once was.
Worse, it’s created a multi-decade bubble in housing that is only just now starting to unwind.
Of course, we don’t have to go on this way. Recognizing falsities like this is a step towards returning to the prosperity of the American Way.