Created Equal: How your debt fuels our economy 

Debt is a paradox – it is necessary to make some big purchases possible – cars, homes – but it can also be a boat anchor, weighing down economic stability and growth.

Government officials have been wrestling with how to manage unpaid debt. President Joe Biden attempted to wave student loan debt for a select number of borrowers, and in Michigan, two counties announced plans to eliminate medical debt for over 300,000 residents combined.

Eliminating debt is widely debated, but economist and author of “The Paradox of Debt” Richard Vague believes this is the best solution when dealing with debt and that this solution is just another natural step in the process. 

Vague joined Created Equal on Tuesday to discuss how debt works and who it benefits.

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Guest:

Richard Vague is an economist and author of “The Paradox of Debt.” He says lower income people carry more debt in proportion to their income.

“Over the 35 or so years, debt to income in the upper-income levels has increased hardly at all while debt in the lower income ranges has increased 75 to 80%. And that really creates a disproportionate debt burden on the lower part of the income spectrum that makes accumulating wealth and just living day-to-day more challenging,” he said. 

Listen to Created Equal with host Stephen Henderson weekdays from 9-10 a.m. ET on 101.9 WDET and streaming on-demand.