Debt and the Great Recession

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In debt

The Great American Recession resulted in the loss of eight million jobs between 2007 and 2009, and more than four million homes were lost to foreclosures. Is it a coincidence that there was a dramatic rise in household debt in the years before the recession—that the total amount of debt for American households doubled between 2000 and 2007 to $14 trillion? Definitely not, says Atif Mian. In House of Debt: How They (and You) Caused the Great Recession, and How We Can Prevent It from Happening Again, Mian and co-author Amir Sufi explain how the Great Recession and Great Depression, as well as the current economic malaise in Europe, were caused by a large run-up in household debt followed by a large drop in household spending.