Here's A Message For Everyone Who Says The US Economy Cut The Debt And Take Its Medicine

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http://www.businessinsider.com/the-us-economy-has-taken-the-pain-2012-10

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Advocates of spending cuts frequently argue that in order to ensure long-term economic health, the US needs to "take some pain" right now and reap the benefits later on. Partly this is due to the idea that too much debt acts as a gigantic weight on the economy going forward. Part of this thinking is just due to a general moral view that suffering is a good thing that will be benefit us in the long run.

But here's the thing. The US already has taken the pain.

Yesterday, Bloomberg noted that on a debt-to-GDP basis, America's debt has fallen to a 6-year low:
Total indebtedness including that of federal and state governments and consumers has fallen to 3.29 times gross domestic product, the least since 2006, from a peak of 3.59 four years ago, according to data compiled by Bloomberg. Private- sector borrowing is down by $4 trillion to $40.2 trillion.

***SNIP

For example, here's Household Debt as a share of GDP, which as you can see has fallen to levels not seen since the early part of the century.


***MORE DISCUSSION HERE:
http://www.democraticunderground.com/10021498810