Dynamics behind the Rise in Household Debt in Advanced Capitalist Countries An Overview

This paper examines the dynamics behind the rise in household indebtedness across different countries as a part of financialisation of household income over the last few decades. It argues that the current rise in consumer credit and household debt is historically unique, especially regarding the socioeconomic conditions under which consumer credit operates. An accurate understanding of the phenomenon necessitates including a multidimensional analysis of the many transformations that capitalism has been undergoing such as transformations in the welfare systems, changes in labour markets and developments in the financial sector. In doing so, an emphasis should be put on differences within and across countries and how the rise in household debt and the financialisation of household income have occurred in various ways.