The State of the American Debt Slaves, Q2 2019

by | Aug 8, 2019

Wolf Richter at Wolf Street.

Consumer credit – auto loans, student loans, and revolving credit such as credit card balances and personal loans, but not housing-related debt such as mortgages and HELOCs – grew 5.4%, or by $208 billion, in the second quarter compared to a year ago, to a new record of $4.06 trillion.

The student loan ponzi scheme.

But that surge in student loan balances is not because there are more students enrolled. On the contrary: According to the latest data available from the National Center for Education Statistics, enrollment fell by 7% between 2010 and 2017, from 18.1 million students to 16.8 million students.

So who got this $1.6 trillion that students now owe and that the taxpayer guarantees? Students are just the conduit for this money. Who ends up with it? Universities; Apple and other companies, such as textbook publishers, that focus on selling their goods and services to students; other participants in the economy such as grocery stores and concert venues; and importantly, investors in a booming asset class called “student housing.” They are the recipients of these taxpayer guaranteed funds. And every dime of this debt contributes to the economy as measured by GDP – on the time-honored principle of Apocalypse not now.

This is also how the Military Industrial Complex operates.  Tax dollars are funneled to other countries via aid then the money is used by that country to purchase military hardware.  This also adds to GDP.

Steven Woskow

Steven Woskow

Steve Woskow is an entrepreneur and was President of Agtech Products, Inc., a research and development company specializing in animal agriculture. He has a Ph.D. in Nutrition and Food Science from Iowa State University. He is retired and lives with his family in Northern Nevada.

View all posts

Our Books

libertarian inst books

Related Articles


New Book Is A Must Read For Iraq War 2 Enthusiasts

Iraq War 2 is ancient history, like Athens’ defeat at Aegospotami or the NATO-Russia Founding Act. But for some of us, it seems like only yesterday we were being lied into one of the greatest geopolitical disasters of the Western imperial order. There’s a new book...

read more

It’s a Crazy World

What's to be said about people who grieve over the deaths of Palestinian children in Gaza at the hands of the U.S.-backed Israeli military while simultaneously cheering the Mengele-style wrecking of children's lives in America and elsewhere at the hands of...

read more

Pin It on Pinterest

Share This