Comments on: Cutting Up the Card http://dqydj.net/cutting-up-the-card/ The Intersection of Economics, Politics, and Personal Finance Thu, 09 Feb 2012 17:28:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Cameron Daniels http://dqydj.net/cutting-up-the-card/comment-page-1/#comment-819 Cameron Daniels Thu, 11 Feb 2010 14:24:52 +0000 http://dqydj.net/?p=1083#comment-819 Making a comparison of consumer debt as a function of dispoasble income is not necessarily ceteris parabis across time periods. For example, the unemployment rate from third quarter 2008 to third quarter 2009 increases by about 50% (not 50 percentage points, 50 percent). Since real wages of the employed stayed relatively constant across the short time period (unlike what happened, for example, during the Great Depression), it is very difficult to make a comparison. Although, of course, a rising unemployment level would also suggest that those unemployed would use MORE credit. It is difficult to see what effects this reduction in the liquidity of money will have until a while down the road. .-= Cameron Daniels´s last blog ..<a href="http://feedproxy.google.com/~r/DQYDJ/~3/5tP4ydO_nTA/" rel="nofollow">Cutting Up the Card</a> =-. Making a comparison of consumer debt as a function of dispoasble income is not necessarily ceteris parabis across time periods. For example, the unemployment rate from third quarter 2008 to third quarter 2009 increases by about 50% (not 50 percentage points, 50 percent). Since real wages of the employed stayed relatively constant across the short time period (unlike what happened, for example, during the Great Depression), it is very difficult to make a comparison.

Although, of course, a rising unemployment level would also suggest that those unemployed would use MORE credit. It is difficult to see what effects this reduction in the liquidity of money will have until a while down the road.
.-= Cameron Daniels´s last blog ..Cutting Up the Card =-.

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