The sky-high debt levels of American households may be responsible for the high unemployment rate that continues to weigh on the economy, according to research by Amir Sufi, professor of finance, and Atif Mian of the University of California – Berkeley Haas School of Business.
In a working paper that has drawn the attention of blogs published by the New York Times and Mother Jones, Sufi argues that depressed consumer spending is causing high unemployment, and spending has fallen because of deep household debt.
Seth Maxon 