Discuss the rise of the credit industry in the United States and the present-day consumer’s relationship to debt.
What will be an ideal response?
Ans: Consumption continued to rise during wage stagnation, driven by growing credit markets. In 2013, U.S. consumers held almost 392 million credit cards, and their combined credit card debt was about $870 billion. Average of 3.7 cards and owed about $8,222. Bankruptcies have become more common; car debt. During recession, U.S. consumers have cut back on spending--meals away from home, apparel, housing, and transportation.
KEY: Learning Objective: 15.5: Describe historical and contemporary trends in U.S. consumption and consumer debt.
REF: Cognitive Domain: Analysis
Answer Location: Credit: Debt and More Debt
Difficulty Level: Medium
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