The Changing American Attitude toward Debt, and Its Consequences
The American people no longer view the government budget deficit as a significant problem. This represents a radical change in the attitude of Americans from thirty years ago, when even small deficits were viewed with great concern. People are not much concerned about our long string of trade deficits, either. Moreover, there is no perception of the linkage between the federal budget deficit and the trade deficit.
The author describes the factors that have produced this change in American values, drawing on his own experience in government. He goes on to assess the consequences, past and future, for the U.S. economy, noting that society's values help to shape the macroeconomic options open to a democratic government.
About the Authors
Frank E. Morris
The Credit Card Debt Puzzle: The Role of Preferences, Credit Risk, and Financial Literacy
What Are the Consequences of Global Banking for the International Transmission of Shocks? A Quantitative Analysis
Consumer Revolving Credit and Debt over the Life Cycle and Business Cycle
Should the Fed Regularly Evaluate Its Monetary Policy Framework?