Unemployment in the US Essay -- essays papers

Unemployment in the US Why I Chose These Indicators I chose these indicators because all are something that ordinary people deal with every day. All of us have control over our own spending and how far into debt we go. If we are not making the salary we want then we are free to look for a new job or an additional job. There is also the possibility of going back to school to raise your educational level in order to get a better job. This may, of course, put us deeper into debt. We are in debt as a country, and as individuals, but with the economy as strong as it is people have no qualms about going deeper into debt. There are increases in delinquency rates on consumer loans, record numbers of bankruptcy filings, and an increasing share of income devoted to paying interest on debt. These are signs that some households are becoming overextended. In this paper I discuss bankruptcy, consumer credit, inherited wealth and the difference in the way some generations handle debt. Executive Summary Personal income, installment debt and unemployment are coincident or lagging economic indicators or both. By many measures the US economy is very healthy, but increasing consumer debt and personal bankruptcies raise concerns about the future. Credit card debt is higher than ever, and personal bankruptcies soared in 1995 and 1996 (Silverman 1997). Over 10% of Americans are expected to declare bankruptcy during the 1990s unless the trend changes, and there is no longer public scorn for those who file bankruptcy (Darlin 1997). Consumer credit remains readily available despite rising bankruptcies. This trend is attributed to a credit-friendly social policy which requires credit to be extended without discrimination. Furthermore, easy credit is needed to allow consumers to buy goods. The lending business also remains lucrative. To manage risks, financial institutions resort to diversification and risk shifting. The cost of bankruptcy is also incorporated in the cost of credit (Lykins and Plankenhorn 1996). The post baby-boom group known as Generation X is accumulating a great deal of debt, mostly through credit cards. The average credit card balance of households headed by someone under 25 nearly doubled from 1990 to 1995. There seems to be little desire among these people to live within their means (Shenk 1997). However,... ...e News, 6 October 1997 v13 n37 p40. Lykins, Gregory B., and Robert L. Plankenhorn. AEven with personal bankruptcies at record levels, easy consumer credit is here to stay,@ Illinois Business Review, Winter 1996 v53 n4 pg32. McGinn, Daniel. ADeadbeat nation: why are so many people in bankruptcy court?,@ Newsweek, 14 April 1997 v129 n15 p50. Murphy, Robert G. AHousehold debt and consumer spending,@ Business Economics, July 1998 v33 n3 p38. Seiberg, Jaret. AFed card study finds surprisingly little pure convenience use,@ American Banker, 19 June 1997, v162 p4. Shafer, Tim. ASailing over the fence: the rewards of good credit,@ Credit World, July-August 1997 v85 n6 p38. Shrenk, Joshua Wolf. AIn debt all the way up to their nose rings,@ U.S. News & World Report, 9 June 1997 v122 n22 p38. Silverman, Dick. AConsumer debt builds a house of cards,@ Daily News Record, 1 August 1997, v27 n92 p10. Time. AWhen boomers become busted,@ Time 31 March, 1997 v149 n13 p64. Topolnicki, Denise. AYou=d be surprised what folks will do for money today,@ Money August 1994, v23 n8 p12. Ventura, Michael. AThe psychology of money,@ Psychology Today, March-April 1995, v28 n2 p50. Unemployment in the US Essay -- essays papers Unemployment in the US Why I Chose These Indicators I chose these indicators because all are something that ordinary people deal with every day. All of us have control over our own spending and how far into debt we go. If we are not making the salary we want then we are free to look for a new job or an additional job. There is also the possibility of going back to school to raise your educational level in order to get a better job. This may, of course, put us deeper into debt. We are in debt as a country, and as individuals, but with the economy as strong as it is people have no qualms about going deeper into debt. There are increases in delinquency rates on consumer loans, record numbers of bankruptcy filings, and an increasing share of income devoted to paying interest on debt. These are signs that some households are becoming overextended. In this paper I discuss bankruptcy, consumer credit, inherited wealth and the difference in the way some generations handle debt. Executive Summary Personal income, installment debt and unemployment are coincident or lagging economic indicators or both. By many measures the US economy is very healthy, but increasing consumer debt and personal bankruptcies raise concerns about the future. Credit card debt is higher than ever, and personal bankruptcies soared in 1995 and 1996 (Silverman 1997). Over 10% of Americans are expected to declare bankruptcy during the 1990s unless the trend changes, and there is no longer public scorn for those who file bankruptcy (Darlin 1997). Consumer credit remains readily available despite rising bankruptcies. This trend is attributed to a credit-friendly social policy which requires credit to be extended without discrimination. Furthermore, easy credit is needed to allow consumers to buy goods. The lending business also remains lucrative. To manage risks, financial institutions resort to diversification and risk shifting. The cost of bankruptcy is also incorporated in the cost of credit (Lykins and Plankenhorn 1996). The post baby-boom group known as Generation X is accumulating a great deal of debt, mostly through credit cards. The average credit card balance of households headed by someone under 25 nearly doubled from 1990 to 1995. There seems to be little desire among these people to live within their means (Shenk 1997). However,... ...e News, 6 October 1997 v13 n37 p40. Lykins, Gregory B., and Robert L. Plankenhorn. AEven with personal bankruptcies at record levels, easy consumer credit is here to stay,@ Illinois Business Review, Winter 1996 v53 n4 pg32. McGinn, Daniel. ADeadbeat nation: why are so many people in bankruptcy court?,@ Newsweek, 14 April 1997 v129 n15 p50. Murphy, Robert G. AHousehold debt and consumer spending,@ Business Economics, July 1998 v33 n3 p38. Seiberg, Jaret. AFed card study finds surprisingly little pure convenience use,@ American Banker, 19 June 1997, v162 p4. Shafer, Tim. ASailing over the fence: the rewards of good credit,@ Credit World, July-August 1997 v85 n6 p38. Shrenk, Joshua Wolf. AIn debt all the way up to their nose rings,@ U.S. News & World Report, 9 June 1997 v122 n22 p38. Silverman, Dick. AConsumer debt builds a house of cards,@ Daily News Record, 1 August 1997, v27 n92 p10. Time. AWhen boomers become busted,@ Time 31 March, 1997 v149 n13 p64. Topolnicki, Denise. AYou=d be surprised what folks will do for money today,@ Money August 1994, v23 n8 p12. Ventura, Michael. AThe psychology of money,@ Psychology Today, March-April 1995, v28 n2 p50.