Saturday, July 20, 2013

It's Wrong to Borrow Today, Stick the Repayment on Your Kids and Grandkids

The reason many U.S. voters are outraged by $17 trillion in federal government deficits is that it represents inter-generational borrowing: simply, older people borrow to support their benefits today, while leaving the repayment for their children, grandchildren and great grandchildren.

It’s wrong. It’s just that simple.

High unemployment and debt loads arguably have led to a decreased ability to save for a down payment or qualify for a mortgage.

Between 2006 and 2011, those 25 to 34 experienced the largest decline in home ownership rates in the country, according to a USA Today analysis of Census Bureau data.



Source: U. S. Census Bureau, Monthly Labor Review, Project on Student Debt, Institute for College Access and Success, Consumer Financial Protection Bureau

Hadley Malcolm and Frank Pompa, USA TODAY

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