Daily VideoAugust 18, 2011
Income Inequality Fuels Borrowing Cycle
Just as many Americans had started to pay down debts racked up before and during the recession that began in 2008, a new wave of economic trouble is hitting the country. Now, more people are facing layoffs and challenges that may make it difficult to continue to work their way out of debt.
More people are borrowing money again, as they did in droves before the economic crash three years ago. The gap between the rich and the rest of America also continues to grow, so many economists predict that ordinary Americans will borrow more money to try to ‘keep up’ with their wealthier counterparts.
In the meantime, home foreclosures continue to plague many and middle-income Americans’ salaries aren’t keeping up with rising costs. To economists, that equation adds up to a possible repeat of the borrowing problem that led to the most recent recession.
Warm Up Questions
1. What does the term ‘wealth gap’ mean to you?
2. What is credit? How does a credit card work?
3. Name some factors that led to the economic crash of 2008.
1. Do you see a solution to the borrowing cycle described in this video? What do you think needs to change to keep people from borrowing more money than they can pay back?
2. Have you ever borrowed money? If so, what for? What do you think are good and bad reasons to borrow money?
3. According to the video, what are the main differences between Americans’ lifestyles and borrowing habits after World War II and today?
Tooltip of related stories
Tooltip of more video block
Submit Your Student Voice
Fighting has escalated in Aleppo, Syria as rebel groups try to hold off government forces attempting to take back the eastern section of the city. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
Fidel Castro, the 90-year old communist leader of Cuba, died on Friday. He had ruled the country with a firm grip for nearly half a century, withstanding a 50-year long U.S. economic embargo and multiple assassination attempts. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
Throughout the 2016 presidential campaign, President-elect Donald Trump promised to crack down on undocumented immigration, including hundreds of thousands of young people who have obtained temporary legal status under the Obama Administration. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
The proliferation of fake news sources on social media has raised questions about the duty of sites like Facebook and Twitter to screen content and distinguish fact from fiction. Continue readingArts & CultureEconomicsHealthScienceU.S.UncategorizedWorld
PBS NewsHour co-anchor and longtime political journalist Gwen Ifill died Monday after battling cancer for the past several months.Arts & CultureEconomicsHealthScienceU.S.UncategorizedWorld