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Household Debt - Coggle Diagram
Household Debt
Intra-household dynamics and power
Gendered divisons of labour
Bargaining models and outside options
Necessary versus surplus labour time
Relational inequality
Domestic violence and economic dependency
Money-management systems
Motherhood penalty and childcare costs
Caring preferences versus self-regarded utility
Threat points and fall-back positions
Pooling vs independant systems
Resource allocation and child welfare
Social norms as endogenous variables
Gendered wage gaps
Wage-setting and collective bargaining
Human capital investment barriers
unitary (‘homogeneous’) household assumption is unrealistic
relational inequality shapes who gets what within households
consumption/expenditure data can conceal intra-household inequality
time-use evidence as an alternative lens on power and unpaid work
Neoclassical intertemporal choice
Discounting future income
Two-period consumption model
Present vs future value
Interest rate hikes and feasable sets
Substitution and income effects
Life-cycle saving patterns
Net-borrower utility loss
Borrowing vs Saving decisions
Time preference and utility
Marginal rate of substitution between periods
impatient vs patient customers
Rational choice with full info
Intertemporal budget constraint
Biunded willpower and procrastination
Point C = no save nor borrow reference point
optimal choice = tangency of indifference curve and budget constraint (preference-dependent borrowing vs saving)
interest rate rise makes repayment more expensive and shrinks the borrower region below Point C
low interest rates enable credit expansion ‘until interest rates go up’
Socio-economic inequalities
vulnerable household precarity
Absolute versus relative poverty lines
Labour share vs profit share
Personal income inequality
Credit-dependent consumption maintenance
functional distribution of income
Gini coefficient fluctuations
Marginalisation of low-income groups
Wealth-to-income disparities
Productivity pay decoupling
Regressive interest rate impacts
Stagnant real wages
income targeted social assistance
Palma ratio and top-earner dominance
Household credit expansion since 1980 as a growth strategy
Stagnant real wages and rising (under)employment insecurity pushes borrowing from choice to need
debt-led growth is underproductive compared to early credit wave that finances major tech investment
Excessive debt and macroeconomic instability
Precarious aggregate demand
Non-productive capital investment
Debt-driven growth regimes
Secular stagnation
Structural macro-level factors
Indebtedness as growth imperative
cheap money period → vulnerability when interest rates rise
lenders’ budget constraint expands when rates rise; borrowers’ feasible set shrinks
debt-led growth ‘precarious’ and not sustainable
Policy and government intervention
Social protection and safety nets
Profit-led growth critiques
Nudge theory and automatic enrolment
Wage-led demand strategies
Minimum wage as a poverty floor
growth policy often prioritises corporate sector via tax benefits and light regulation (‘trickle-down’ claim)
Inequality breeds political inequality/power inequality, weakening broad-based gains from growth
distributional incidence of monetary tightening: borrowers lose, lenders gain