The Problem Is Not Debt: Consumption Is High Not Low

Economists and economic reporters continually try to make the problem of the weak economy and prolonged downturn appear more complicated than it is. After all, if it is very simple then these people would look foolish for not having seen it coming and figuring out a way around this catastrophe. Fortunately for us, if unfortunate for them, it is simple.

One of the efforts to make it more complex than necessary is to assign an outsized role to the debt associated with the collapse of house pric...