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People Outsmart Government

Recorded on November 28, 2011

From The Heritage Foundation, I'm Ernest Istook.

Here's some good economic news. It doesn't come from government, but from us the American people.

We are paying down our debts.

In the third quarter of this year, households reduced their consumer debts and reduced their mortgage debts. Mortgage debt is down almost 10 percent from when it peaked in 2008, according to the New York Federal Reserve.

A lot of Black Friday shoppers said they had saved to afford their purchases, rather than buying now and paying later. They paid with paper, not plastic.

There is still a rise in delinquencies, so it's obvious that not every person and family is being successful in reducing debt.

But it's even more obvious that government is not reducing its debt. Government could learn from the public—when you're spending and borrowing too much, it's time to cut back on loans and only spend what you can afford.

From The Heritage Foundation, I'm Ernest Istook.