The Fact the Media Missed: Overall Debt in the United States Grew at the Fastest Rate Ever Last Year

Economist Dean Baker, in his weekly newsletter (March 8, 2004):

Nation's Debt Grew at Rapid Pace in 2003 Eduardo Porter
New York Times, March 5, 2004, Page C4
http://www.nytimes.com/2004/03/05/business/05fed.html

This article reports on new data from the Federal Reserve Board on debt and financial flows in 2003. It notes that overall debt, and especially consumer debt, grew at their fastest pace since the mid-eighties. It is worth noting that the inflation rate in the mid-eighties was approximately 3.5 percent, while it was less than 2.0 percent in 2003. In real terms, the rate of debt growth in 2003 was the fastest on record.