The Mythical Collapse In American Living Standards

It’s no secret by now that America is in an economic rut.   I’ve described our current predicament as a balance sheet recession which is essentially the hangover after a great great party.  And let’s not kid ourselves – Americans threw one hell of a great party over the last 20 years as they accumulated massive debts as they stockpiled McMansions with all the big boy toys a person could dream of.  But the bill on these toys has come due and now we find ourselves with a sizable private sector debt issue which is capping real growth.

But it’s also important to keep things in perspective.  What is not happening in America is some dramatic collapse in our livings standards.  I know it’s not popular to try to imply that things aren’t so bad in the USA these days, but we have to keep things in perspective.  We are after all, the largest economy in the world and our GDP per capita ranks at an astounding 7th in the world.  A remarkable feat for such a large country.   We are an enormously wealthy group of people despite the recent economic woes.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.