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America's 'House of Credit Cards'

By TheRealNews.com
March 1, 2009

In the United States, unions have been in steep decline, helping to explain recent stagnation in wages, an over-reliance on credit, and today’s painful squeeze on the American middle class.

Economist Richard Wolff said the loss of middle-class status for so many led Americans to turn to credit as a way of maintaining an illusion that they still could afford to consume, and over time that produced a national economy built on “a house of credit cards.”

(The story summary continues below.)

"We took on a level of debt that no working class in any country at any time in the history of this planet ever did before,” Wolff said. "The fundamental issue is that we've run out of ways to keep this going. The wages are not going up and the credit is now tapped out."

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