Nothing Good Comes Of Debt

The fallout from the coronavirus is cutting a swath of destruction through the finances of millions of everyday Americans. Those living beyond their means, overextended on credit, and who suddenly find themselves out of a job are among the hardest hit. The rhythm and momentum of regular paychecks can lull people into a false sense of security, an assumption that money will continue to arrive in their bank account every two weeks. But for many of the hapless victims of this pandemic, the abrupt economic upheaval has jettisoned an untold number of Americans to the precipice of financial ruin.

House of Cards
The truth is that the American economy has been a house of cards for a long time. America bought into its own delusion - that it was the richest and most powerful country in the world. Technically, that is correct. But the most important detail of that statement is that the country’s wealth is only held by a tiny fraction of the population - the one percent. The rest of us – well, we are just supporting that echelon. The average American is not rolling in wealth. The average American has not seen a meaningful increase in wages in decades. The cost of housing, healthcare, cars, food, hell – everything – has increased exponentially, while wages remain stagnant.

Houston, We Have a Problem
With an average consumer debt of $12,000+ per household, it is safe to say that most Americans cannot afford the lifestyles they are living. Eight out of 10 Americans are in debt. Eighty percent! This same 80 percent report living paycheck to paycheck. There is no end to the figures and statistics that outline the painful details – from credit cards, to student loans, car loans and mortgages.

It all comes down to this: most Americans are in financial trouble. Maybe you went to a school you couldn’t afford, or took a vacation you couldn’t afford, bought a car you couldn’t afford, or a house you couldn’t afford – the list goes on. Maybe you got sideswiped by a hospital bill, a family emergency, a car repair, or your roof sprung a leak – there are a myriad of reasons for America’s debt debacle.

The Music Stopped
The financial fallout from the pandemic highlights that the American debt model is unsustainable. The music stopped, and most Americans find themselves without a chair. Many furloughed and displaced workers will find that there will not be a job to return to, while corporations will shelter their executives and conveniently claim bankruptcy to protect their assets. Our economy will be in shambles.

My hope is that something positive might come from this disaster.  That some Americans will break from their pervasive consumerism and choose to stop living beyond their means. They will stop dedicating themselves to a lifetime of debt and the subsequent servitude it requires.