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qew • 2 years ago

US household wages (red) versus household debt (blue) --- not adjusted for inflation --- The middle class filled the gap between rising costs and stagnating wages with debt. Now that the average household is heavily indebted, its ability to leverage a declining income into more debt is seriously impaired. So "filling the gap" with more debt is no longer a possibility. Living within their means and servicing their mountains of debt remove most families from the middle class.

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