Inequality in debt burden fuels economic instability from "summary" of House of Debt by Atif Mian,Amir Sufi
The unequal distribution of debt burden among households can exacerbate economic instability. When debt is concentrated among a small segment of the population, it can create a fragile financial system that is susceptible to shocks. High levels of debt among a few households mean that any adverse event, such as a decrease in income or a decline in asset prices, can have ripple effects throughout the economy. Inequality in debt burden can also lead to a vicious cycle of economic downturns. When a significant portion of the population is highly indebted, they are more likely to cut back on spending in response to negative shocks. This reduction in consumption can further depress economic activity, leading to job losses and income...
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