House of Debt

In House of Debt, Atif Mian and Amir Sufi explore how the rise and fall of household debt significantly contributed to economic downturns like the Great Recession and the Great Depression. Drawing on detailed data and analysis, they argue that excessive debt leads to reduced consumer spending, foreclosures, and widespread job losses, emphasizing the importance of debt reduction and innovative mortgage contracts to break the cycle. The book offers insights into the underlying causes of severe recessions and suggests policy approaches to prevent future economic collapses.