{"id":2355,"date":"2011-11-25T14:00:03","date_gmt":"2011-11-25T19:00:03","guid":{"rendered":"http:\/\/goldstocksforex.com\/?p=2355"},"modified":"2011-11-25T14:00:03","modified_gmt":"2011-11-25T19:00:03","slug":"a-radical-redistribution-of-income-undermined-us-entrepreneurship-bill-mitchell-billy-blog","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2011\/11\/25\/a-radical-redistribution-of-income-undermined-us-entrepreneurship-bill-mitchell-billy-blog\/","title":{"rendered":"A radical redistribution of income undermined US entrepreneurship | Bill Mitchell \u2013 billy blog"},"content":{"rendered":"<p>All components of private debt grew significantly in the decade leading up to the financial crisis which consumer debt leading the way. The household sector, in particular, already squeezed for liquidity by the move to build increasing federal surpluses during the Clinton era, were enticed by lower interest rates and the vehement marketing strategies of the financial engineers to borrow increasing amounts&#8230;..While this strategy sustained consumption growth for a time it was unsustainable because it relied on the private sector becoming increasingly indebted. &#8230;&#8230;With growth being maintained by increasing credit the balance sheets of private households and firms became increasingly precarious and it was only a matter of time before households and firms realized they had to restore some semblance of security by resuming saving.<\/p>\n<p>via <a href=\"http:\/\/bilbo.economicoutlook.net\/blog\/?p=16992#more-16992\">A radical redistribution of income undermined US entrepreneurship | Bill Mitchell \u2013 billy blog<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>All components of private debt grew significantly in the decade leading up to the financial crisis which consumer debt leading the way. The household sector, in particular, already squeezed for liquidity by the move to build increasing federal surpluses during the Clinton era, were enticed by lower interest rates and the vehement marketing strategies of &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/thepatientinvestor.com\/index.php\/2011\/11\/25\/a-radical-redistribution-of-income-undermined-us-entrepreneurship-bill-mitchell-billy-blog\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;A radical redistribution of income undermined US entrepreneurship | Bill Mitchell \u2013 billy blog&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[34],"tags":[962,972,2766],"class_list":["post-2355","post","type-post","status-publish","format-standard","hentry","category-us-canada-countries-regions","tag-debt-crisis","tag-debt-service-ratio","tag-private-debt"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>A radical redistribution of income undermined US entrepreneurship | Bill Mitchell \u2013 billy blog - the patient investor<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A radical redistribution of income undermined US entrepreneurship | Bill Mitchell \u2013 billy blog - the patient investor\" \/>\n<meta property=\"og:description\" content=\"All components of private debt grew significantly in the decade leading up to the financial crisis which consumer debt leading the way. The household sector, in particular, already squeezed for liquidity by the move to build increasing federal surpluses during the Clinton era, were enticed by lower interest rates and the vehement marketing strategies of &hellip; Continue reading &quot;A radical redistribution of income undermined US entrepreneurship | Bill Mitchell \u2013 billy blog&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/thepatientinvestor.com\/index.php\/2011\/11\/25\/a-radical-redistribution-of-income-undermined-us-entrepreneurship-bill-mitchell-billy-blog\/\" \/>\n<meta property=\"og:site_name\" content=\"the patient investor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61572934660810\" \/>\n<meta property=\"article:published_time\" content=\"2011-11-25T19:00:03+00:00\" \/>\n<meta name=\"author\" content=\"ColinTwiggs\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ColinTwiggs\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2011\\\/11\\\/25\\\/a-radical-redistribution-of-income-undermined-us-entrepreneurship-bill-mitchell-billy-blog\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2011\\\/11\\\/25\\\/a-radical-redistribution-of-income-undermined-us-entrepreneurship-bill-mitchell-billy-blog\\\/\"},\"author\":{\"name\":\"ColinTwiggs\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#\\\/schema\\\/person\\\/cb072791ac83e8bae585007c133d54a5\"},\"headline\":\"A radical redistribution of income undermined US entrepreneurship | Bill Mitchell \u2013 billy blog\",\"datePublished\":\"2011-11-25T19:00:03+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2011\\\/11\\\/25\\\/a-radical-redistribution-of-income-undermined-us-entrepreneurship-bill-mitchell-billy-blog\\\/\"},\"wordCount\":151,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#organization\"},\"keywords\":[\"debt crisis\",\"debt service ratio\",\"Private Debt\"],\"articleSection\":[\"US &amp; Canada\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2011\\\/11\\\/25\\\/a-radical-redistribution-of-income-undermined-us-entrepreneurship-bill-mitchell-billy-blog\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2011\\\/11\\\/25\\\/a-radical-redistribution-of-income-undermined-us-entrepreneurship-bill-mitchell-billy-blog\\\/\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2011\\\/11\\\/25\\\/a-radical-redistribution-of-income-undermined-us-entrepreneurship-bill-mitchell-billy-blog\\\/\",\"name\":\"A radical redistribution of income undermined US entrepreneurship | Bill Mitchell \u2013 billy blog - the patient investor\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\"},\"datePublished\":\"2011-11-25T19:00:03+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2011\\\/11\\\/25\\\/a-radical-redistribution-of-income-undermined-us-entrepreneurship-bill-mitchell-billy-blog\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2011\\\/11\\\/25\\\/a-radical-redistribution-of-income-undermined-us-entrepreneurship-bill-mitchell-billy-blog\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/index.php\\\/2011\\\/11\\\/25\\\/a-radical-redistribution-of-income-undermined-us-entrepreneurship-bill-mitchell-billy-blog\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/thepatientinvestor.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"A radical redistribution of income undermined US entrepreneurship | Bill Mitchell \u2013 billy blog\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/thepatientinvestor.com\\\/#website\",\"url\":\"https:\\\/\\\/thepatientinvestor.com\\\/\",\"name\":\"The Patient Investor\",\"description\":\"Smart. 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GDP recovery from 2008\/2009 is accompanied by only a modest rise in Domestic (Non-Financial) Debt -- which is now constraining further growth. Domestic (Non-Financial) Debt is made up of Government Debt and Private\u2026","rel":"","context":"In &quot;Debt Levels&quot;","block_context":{"text":"Debt Levels","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/debt-levels\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3904,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/03\/21\/us-public-debt-growing-at-unsustainable-rate\/","url_meta":{"origin":2355,"position":1},"title":"US public debt growing at unsustainable rate","author":"Colin Twiggs","date":"March 21, 2012","format":false,"excerpt":"We often blame Fed monetary policy for the GFC, with interest rates at exceptionally low levels leading to \"Greenspan's bubble.\" Treasury was just as culpable, however, with the massive 2004-2005 surge in public debt flooding the market with liquidity. The repeat in 2008-2011 was more justifiable: the spike in public\u2026","rel":"","context":"In &quot;Debt Levels&quot;","block_context":{"text":"Debt Levels","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/debt-levels\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9474,"url":"https:\/\/thepatientinvestor.com\/index.php\/2014\/03\/12\/how-a-private-credit-boom-can-lead-to-a-sovereign-debt-crises-frbsf\/","url_meta":{"origin":2355,"position":2},"title":"How a private credit boom can lead to a sovereign debt crises | FRBSF","author":"ColinTwiggs","date":"March 12, 2014","format":false,"excerpt":"From a FRBSF paper Private Credit and Public Debt in Financial Crises by \u00d2scar Jord\u00e0, Moritz Schularick, and Alan M. Taylor: Recovery from a recession triggered by a financial crisis is greatly influenced by the government\u2019s fiscal position. A financial crisis puts considerable stress on the government\u2019s budget, sometimes triggering\u2026","rel":"","context":"In &quot;Debt Levels&quot;","block_context":{"text":"Debt Levels","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/debt-levels\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":60739,"url":"https:\/\/thepatientinvestor.com\/index.php\/2025\/02\/04\/the-debt-liquidity-spiral-michael-howell\/","url_meta":{"origin":2355,"position":3},"title":"The Debt-Liquidity Spiral | Michael Howell","author":"Colin Twiggs","date":"February 4, 2025","format":false,"excerpt":"Michael Howell sums up the growing importance of liquidity in the business cycle: The ultimate cause of all financial crises always remains the lack of liquidity as compared to the tendency of modern credit systems to over-accumulate debt. Crises are always and everywhere, debt re-financing crises. In other words, they\u2026","rel":"","context":"In &quot;Banks &amp; Interest Rates&quot;","block_context":{"text":"Banks &amp; Interest Rates","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/the-fed-banks-interest-rates\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":3345,"url":"https:\/\/thepatientinvestor.com\/index.php\/2012\/01\/25\/whats-going-on-with-debt-in-u-s-real-time-economics-wsj\/","url_meta":{"origin":2355,"position":4},"title":"What\u2019s Going on With Debt in U.S.? &#8211; Real Time Economics &#8211; WSJ","author":"ColinTwiggs","date":"January 25, 2012","format":false,"excerpt":"The chart shows clearly the build up of debt heading into the bust, and the subsequent deleveraging. Overall public and private debt, by this measure, peaked at 302% of GDP in the first quarter of 2009. Since then, it has fallen to 279% as the economy has grown and some\u2026","rel":"","context":"In &quot;Debt Levels&quot;","block_context":{"text":"Debt Levels","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/economy\/debt-levels\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2664,"url":"https:\/\/thepatientinvestor.com\/index.php\/2011\/12\/16\/mark-carney-growth-in-the-age-of-deleveraging\/","url_meta":{"origin":2355,"position":5},"title":"Mark Carney: Growth in the age of deleveraging","author":"ColinTwiggs","date":"December 16, 2011","format":false,"excerpt":"Today, American aggregate non-financial debt is at levels similar to those last seen in the midst of the Great Depression. At 250 per cent of GDP, that debt burden is equivalent to almost US$120,000 for every American (Chart 1). .....backsliding on financial reform is not a solution to current problems.\u2026","rel":"","context":"In &quot;China &amp; HK&quot;","block_context":{"text":"China &amp; HK","link":"https:\/\/thepatientinvestor.com\/index.php\/category\/countries-regions\/china-hk\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/2355","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/comments?post=2355"}],"version-history":[{"count":0,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/posts\/2355\/revisions"}],"wp:attachment":[{"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/media?parent=2355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/categories?post=2355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thepatientinvestor.com\/index.php\/wp-json\/wp\/v2\/tags?post=2355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}