One Side Effect of the Recession Was a Surge
One side effect of the recession was a surge in college attendance. Nearly 3 million Americans enrolled in the fall of 2009, half a million more than in fall 2007. However, barely more than half of those students—52.9 percent—have graduated with a bachelor ’s or associate’s degree in the six years since.
The combined working-age population of the world’s advanced economies will shrink next year for the first time since 1950. This demographic reversal will mean slower economic growth, less demand for durable goods such as cars, and more demand for services like health care.
Between March and September, more than $110 billion in auto loans went to U.S. borrowers with credit scores below 660, the cutoff for what’s considered “good” credit. About $70 billion went to borrowers with scores below 620, a level deemed “bad.” Subprime auto loans are now at nearly the same level as they were in 2006.
Just 57 percent of American adults were able to pass a basic, five-question financial decision-making test, according to a global study conducted by the World Bank, Gallup, and George Washington University. That put the U.S. 14th in the world for financial literacy, behind other developed nations like Finland, Australia, and Germany.
Congress is considering a bill that would revoke or deny passports for U.S. citizens who are “seriously delinquent” on taxes of $50,000 or more. Lawmakers have estimated that cracking down on delinquent taxpayers in this manner will raise $398 mil lion over 10 years.
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