Most Australians “comfortable with their debt”

7 Jul

Australia’s debt to equity ration is the highest in the developed world at around 158%. But 49% of people feel “comfortable with their debts” indicating that most feel pretty comfortable owing considerably more than they earn.  It may be normal like obesity but it’s not a good thing.

There may be an argument that consumer debt is helpful to the economy, and while this is true in the short term in the short term it reduces the capacity of Australians to consume in the longer term.

By increasing the share of GDP occupied by finance it does so at the expense of other sectors rather than increasing the pie.

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