Altogether, American consumers today owe about 1.3 trillion dollars.
There is some danger in taking on debts, however. When the economy slackens and employers lay off workers, families that lose breadwinners often fail to make the payments on their debts. (46. If they fall behind too far on these responsibilities. they run the risk of having their houses, cars, or other items taken over or repossessed by the lenders).
But in the U.S. economy, most people are lenders as well as borrowers. Normally a family has a saving account, money that is, in effect, loaned to a saving institution in return for interest. Most also have life insurance. The insurance company takes the premiums, guarantees a payment to be made when a policy-holder dies, and meanwhile invests some of the money.
(47. Many experts recommend that families save no less than 5 percent of their disposable income for further needs.)
Many countries depend much less than the U.S. does on the marketplace to decide who will sell goods and in what quantity. In communist and socialist countries, government agencies decide the amount, type and price of many of the goods to be produced. Many or all places of economic activity such as factories, farms, mines, utilities and transportation network are owned chiefly by the government.
In the U.S., too, the role of government is growing. (48. Corporate leaders and economists are wondering how much regulation the market system can take before it loses its ability to respond to consumer needs.) But the system continues to function, and businesses continue to work for more profits and consumers for more income, knowing that they will be able to retain much of their wealth.
(49. Most men and women learn early that society places a certain monetary value on various professions and skills, based again on the law of supply and demand.) Doctors, who must study long years to develop specialized skills and are therefore in short supply, earn more than labors who have little training and many competitions for the same job.
That's not to say that good jobs and more wealth are guaranteed to Americans. The U.S. economy has been plagued periodically with two major problems: high unemployment and the rising cost of living—inflation.
The two problems are closely linked. (50. When prices climb faster than people's incomes, families sooner or later are forced to cut back on buying in order to make each end meet.)
(51. That limits what business can produce and how many people they can employ. It may even start a temporary decline in the country's economy—such as the one that ran from late 1973 to the spring of 1975, when millions of people were laid off from their jobs.)
Still, despite all of the problems that exist, most Americans prefer the U.S. economic system to any other, as the result of poll after poll indicates.
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