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Thread: American Workers Drowning in Debt

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  1. #1
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    Default American Workers Drowning in Debt



    American Workers Drowning in Debt

    “The average American household carries $137,063 in debt, according to the Federal Reserve’s latest numbers.

    Yet the U.S. Census Bureau reports that the median household income was just $59,039 last year, suggesting that many Americans are living beyond their means.

    Here’s how much debt the average U.S. household owes in credit cards, auto loans, student loans, and mortgages.

    Those numbers are unlikely to shrink anytime soon, according to NerdWallet. That’s because the cost of living in the U.S. rose 30% over the past 13 years, yet household incomes only grew 28%. As a result, more Americans are using credit cards to cover basic needs like food and clothing.

    Medical expenses have grown 57% since 2003, while food and housing costs climbed 36% and 32%, respectively. Those surging basic expenses could widen the inequality gap in America, as a quarter of Americans make less than $10 per hour.


    Politsturm: The fact that Americans are overwhelmed with onerous debts is not surprising to those who understand how capitalism works. These debts are largely the result of credit cards, student loans, mortgages, and auto loans. All of these types of debts are loans of money to purchase certain commodities, such as cars, houses, clothes, or even an education. When this loan is created, there is an interest which is paid from the lender to the borrower. The massive loans are simply a reflection of the debt owned as an asset by the capitalist class and owed by the workers. There are two dimensions to this relationship, lender and borrower, asset and liability, capitalist and worker.

    The companies and individuals who own this debt are able to profit at the expense of the working class. A portion of the unpaid labor of the working class is paid to the bondholders in the form of interest. This article propagates the absurd argument that the working class American is “living beyond their means”. This is just another way in which the idle, parasitic capitalist tells the worker to grin and bear the insufferable domination of capital. The workers truly have nothing to lose but their chains.
  2. #2
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    just lol at this poorly written article.

    A portion of the unpaid labor of the working class is paid to the bondholders in the form of interest.


    lol this isn't even true. The money came from "the working class" therefore it was from paid labor. And wtf? Bondholders? There aren't bondholders in any of the consumer debt categories the article lists, except maybe MBS.
  3. #3
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    just lol at this poorly written article.



    lol this isn't even true. The money came from "the working class" therefore it was from paid labor. And wtf? Bondholders? There aren't bondholders in any of the consumer debt categories the article lists, except maybe MBS.[/COLOR]
    Care to explicate at greater length? I recall that Marx wrote about the working class not being able to afford the products that they created, in the long run. Do you disagree with the 'crisis of overproduction' idea? Isn't it a fact that particular debts from individual workers are bundled up and traded like commodities? I thought that was the essence of the housing crisis circa 2007. Why should student loans and credit cards be any different from Mortgage Backed Securities in this context?
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    Care to explicate at greater length? I recall that Marx wrote about the working class not being able to afford the products that they created, in the long run. Do you disagree with the 'crisis of overproduction' idea? Isn't it a fact that particular debts from individual workers are bundled up and traded like commodities? I thought that was the essence of the housing crisis circa 2007. Why should student loans and credit cards be any different from Mortgage Backed Securities in this context?
    I was mostly criticizing the "article" which is typical of leftist activist writers who don't seem to know much beyond the few bits of Marx they've read.

    What you're referring to is the underconsumption theory developed by Sismondi and Marxists like Baran and Sweezy. Marx's theory of overproduction is actually different than this theory.

    Anyways, your point really doesn't make much sense either. Of course debts are bundled and traded, but what's your point?

    I pointed out the bond thing because it's clear that the writer doesn't seem to know what a bond actually is in relation to debt. Or perhaps I misunderstood and they meant corporate bonds? It's poorly written so doesn't really make sense.
  5. #5
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    I was mostly criticizing the "article" which is typical of leftist activist writers who don't seem to know much beyond the few bits of Marx they've read.

    What you're referring to is the underconsumption theory developed by Sismondi and Marxists like Baran and Sweezy. Marx's theory of overproduction is actually different than this theory.

    Anyways, your point really doesn't make much sense either. Of course debts are bundled and traded, but what's your point?

    I pointed out the bond thing because it's clear that the writer doesn't seem to know what a bond actually is in relation to debt. Or perhaps I misunderstood and they meant corporate bonds? It's poorly written so doesn't really make sense.
    I do not know a simpler way to put my question, so I will just repeat myself. "Politsturm" says this:

    A portion of the unpaid labor of the working class is paid to the bondholders in the form of interest.
    You say that is not true. That is an arguable claim so I would like you to argue for it.

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