Today’s Chart of the Day is from @hedgeye on X, formerly known as Twitter, and shows what a typical family income would look like if the US was a typical household.
In summary, US families borrow 38% of the amount they spend. This is unsustainable. The big question is how much, and for how long, can we continue to borrow at this rate?
Let’s say we cut back on spending by a draconian 50%, leaving us $32,000 annually to pay down debt. It would still take us 11 years to do so and at a 20% reduction, it would take us 26 years.