Income Inequality Fuels Debt Crisis Among Low-Income Americans.
The study looked at why some people have more debt compared to their income in the US. They used a model with different income levels to see what factors affect debt levels. They found that when income growth is unexpected and financial services are easy to access, people tend to have more debt. Also, differences in productivity between high and low-income groups have a smaller impact on debt for lower-income people compared to redistributing taxes across income groups.