As the country contemplates a recession, economists are wringing their hands over a slow-down in consumer buying. About two-thirds of the economy is driven by consumer purchasing. Without that engine, economists fear that the economy will be in serious trouble.
But I haven’t read much about the role that debt will play in slowing down consumer spending–recession or no recession. The staggering debt burden that American families are carrying should have everyone worried. The math is easy: Every dollar that goes to paying interest is a dollar that is not used to buy socks or movie tickets or double lattes.