Debt can be a valuable tool for making major purchases, but it can also hinder economic stability and growth if not managed properly. Government officials have struggled with managing unpaid debt, as seen in President Joe Biden’s attempt to forgive student loan debt and two Michigan counties eliminating medical debt for over 300,000 residents. The debate around eliminating debt continues, with economist Richard Vague advocating for it as a natural solution.
Vague, an economist and author, highlights that lower-income individuals tend to carry a higher proportion of debt compared to their income. Over the past few decades, debt-to-income ratios have remained relatively stable for higher-income groups but have skyrocketed by 75 to 80% for those in lower income brackets. This disproportionate debt burden on lower-income individuals makes it challenging for them to accumulate wealth or meet everyday expenses.
To learn more about this topic, tune in to Created Equal with host Stephen Henderson on 101.9 WDET weekdays from 9-10 a.m. ET or stream on-demand. At WDET, we are committed to producing trusted, accurate, and up-to-date journalism that is accessible to all. As a public media institution, we rely on independent support from readers like you to maintain our journalistic integrity. If you appreciate WDET as a source of news, music, and engaging conversations, please consider making a donation today to support our work and help us continue to serve the community.