Debt can be both an asset and a liability. It is crucial for major purchases, such as cars and homes, but it can also hinder economic stability and growth if not managed properly. Government officials have struggled with managing unpaid debt, with initiatives like President Joe Biden’s student loan debt relief program and two Michigan counties eliminating medical debt for over 300,000 residents. The debate on eliminating debt continues, with economist Richard Vague advocating for it as a natural solution in his book “The Paradox of Debt.”
Vague, an economist and author, argues that lower-income individuals carry a higher proportion of debt compared to their income. Over the past few decades, debt-to-income ratios have remained relatively stable for higher-income groups but have skyrocketed by 75 to 80% for those in lower income brackets. This disproportionate debt burden on lower-income individuals makes it challenging for them to accumulate wealth or meet everyday expenses. If you want to learn more about this topic, tune in to Created Equal with host Stephen Henderson on 101.9 WDET weekdays from 9-10 a.m. ET or stream on-demand.
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