The Rise of Household Debt in Global Economy and Türkiye

Year 2023, Volume: 73 Issue: 2, 697 - 716, 30.12.2023

Murat Birdal , Serdar Acun , Parla Onuk

https://doi.org/10.26650/ISTJECON2023-1242692

Abstract

This paper investigates the rise of household debt and its impact on class relations and the sustainability of capitalism. The analysis begins with a historical perspective on the factors contributing to household debt growth, such as declining wages, increasing pressure on organized labor, and the need to maintain consumer demand in the face of declining profit margins. The paper then compares the dynamics of household debt across countries and examines Türkiye’s case in a global context. The findings suggest that unsustainable household debt levels, declining wages, and rising inequality; raise doubts about the long-term sustainability of capitalism as we know it. The paper advocates for rethinking economic policies and practices, prioritizing the well-being and prosperity of the majority.

JEL Classification : G51 , E31 , F34

Keywords

Household indebtedness, inflation, financialization

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