Difficulties among renters may pose some risk to the economy overall, but this risk is likely to be limited, since renter households currently receive only one-sixth of overall after-tax household income. Renters’ debt-service and financial obligations ratios have trended down a little during the past two years, a hopeful sign that is likely correlated with the overall improvement in the economy.
We recovered by developing new goods and services and entering new markets. There can be no doubt that we have the entrepreneurial spirit, the skills, the educated work force and the expertise to compete successfully in the global marketplace. But that does not make it easy.