For years, Froma Harrop has been a reliable spear carrier for the progressive Democrats, so when she speaks on a national policy issue, you can assume she is speaking for the Democratic establishment. Thus, it is noteworthy that her recent op ed essay sounded the alarm over rising consumer debt.
People are buying groceries and consumer goods under "Buy Now, Pay Later" programs that allow them to pay off their purchases in four monthly payments. Why don't these folks just charge their purchases on their credit cards? Harrop asked. Probably because their credit cards are maxed out.
Harrop also observed that car loan delinquencies are up, which is especially worrisome because the last thing people want to lose is their cars.
And a high percentage of student borrowers are behind on their student loans. Harrop noted that 25 percent of the federal government's $1.6 trillion student loan portfolio is in danger of default, and 31 percent of student borrowers are delinquent on their monthly payments by 90 days or more.
Harrop didn't mention the residential housing market, but there's also trouble in that segment of the economy. Everyone rejoiced when mortgage rates sank below 3 percent, but now they hover around 7 percent.
In Florida, the bellweather state for residential housing, sales have slowed, and in some Florida markets, sellers have been forced to cut their prices to attract buyers. This trend is showing up in other states.
The federal debt is rising too- currently at $36 trillion, with interest payments absorbing more and more of the federal budget. Like the weather, Congress talks endlessly about the national debt, but lawmakers are not doing much about it.
Harrop believes the Trump administration is only making the nation's debt problem worse, and she may be right. Trump has been filibustering the Federal Reserve, hoping to bully Jerome Powell into lowering interest rates, which might only fuel more inflation.
Harrop's essay surely parrots the Democratic establishment's views, but what did the Democrats say about debt when Joe Biden was in office? Did they complain about all the military equipment the Army abandoned in Afghanistan--equipment that had to be replaced at great expense when the U.S. helped the Ukrainians fight the Russians? Did the Dems express concern about the federally funded NGOs that were transporting illegal immigrants into the United States and then putting them up in expensive hotels? Did Democratic congresspeople make any effort to reduce the cost of federal Medicaid programs, which now insure one-fifth of the American population?
The answer to all these questions is no. Now that the Democrats are out of power, they're complaining about inflation, consumer borrowing, and the astronomical national debt--problems they are cheerfully blaming on President Trump.