quote:I'm not sure what you are asking. Clearly there is a positive correlation between consumer debt and bankruptcy. That that correlation increases exponentially with greater debt is intuitive. What specifically are you asking?
"consumer depreciation business"? Are you just noting that consumers are, on average, buying more "stuff" now than before and financing it with consumer debt? Are you inferring that the whole idea of the American Dream is something that is designed to advance consumerism and therefore we mortgage our financial health and futures to "buy" it? What? bsm
quote:Wanting a house (territory), a car (mobility), and income (security) is fine, however the perception and reality of the so-called American Dream depend entirely on the person dreaming the dream.
That is an interesting sentence.
What is the reality of a dream, any dream?
I don't give a damn about any dreams. I am talking about understanding reality and manipulating it into a more desireable future reality. The future is coming and will enentually be the current reality, but what it will be like depends on decisions we make and actions we take today. But our decisions depend on our understanding of current reality.
That association between income and security for instance. There are people with pensions from General Motors who assumed their incomes were secure but Wall Street is worried about General Motors going bankrupt. If that happens how secure will the income from those pensions be? Suppose a man had $10,000,000 in a safe deposit box. He could live the rest of his life with zero income. Many people would consider that dumb but he would be secure with NO INCOME.
The state of the American economy doesn't really surprise me and IN MY OPINION the economics profession still isn't distributing the necessary information to understand what is going on. I understood that planned obsolescence was going on in automobiles before I graduated from grammar school. I haven't been to an auto show since 1965 but I didn't notice that economists were ignoring the depreciation of durable consumer goods until 1976.
I figure the American people have lost at least TEN TRILLION DOLLARS on depreciation of automobiles since 1945. This doesn't count more money spent on car loans and insurance due to higher prices caused by planned obsolescence. Henry Ford brought the price of the Model T down from $850 in 1908 to $300 by 1927 by not changing the car. I think he was mistaken by not changing the car during a time when mechanical engineering technology was actually improving. The P-51 Mustang could not have been designed and built in 1927. Most of the changes in cars since the 50s have either been unnecessary or compensations for bad designs that never should have been made in the first place. An electronic ignition system could be retrofit to a 1957 Chevy, entire cars don't need to be redesigned to obtain genuine improvements.
Our present could be very different if different decisions had been made in the past, like making accounting mandatory in all high schools for all students since 1945. Would that graph of bankruptcies be very different? We cannot change the past we can only try to affect the present. That is why I put this stuff on the internet.
I do find it curious that no one has commented on my suggestion of mandatory accounting. No agreement, but no disagreement. LOL