Debt as a proportion of personal income rose from 58 percent in 1973 to 85 percent in 1997. Credit cards have become a routine way of financing everything from household appliances to college educations. And, much like the 1970s and 1980s when the World Bank and IMF encouraged much of the third world to borrow heavily, the lenders must share a portion of the responsibility for the domestic credit card-fueled debt that has grown astronomically in recent years. As a consequence of stagnating wages and increasing consumer debt the number of individuals who filed for bankruptcy roughly doubled in the 1990s. One of the strong suits of Shifting Fortunes is the authors discussion of the wealth gap between black and white Americans.
Hispanic households have even less wealth than blacks.
Some of the discriminatory practices that have contributed to this situation are discussed, particularly in the housing industry, as well as some of the consequences regarding opportunity for attaining a decent college education. Shifting Fortunes closes with a brief synopsis of various proposals to reduce the wealth gap. These include both asset-building policies as well as suggestions for a wealth tax. While not detailed the proposals certainly provide some good starting points for discussing a problem that has largely been ignored.