[Toddsterpatriot]

Actually the proper analogy would not a raise to finance your increased expenditures, but by trading away assets. Sell off 6% of your house to finance your expenditures, after all your house will rise in value so that your equity will grow, you were able to enjoy greater consumption and have an increasing net worth. You were able enjoy a free lunch.

The gain in net worth is bigger if it includes the value of housing. The Fed's measure of the net worth of households reached $40.3 trillion in 2001, up from $27.2 trillion in 1995.

David Malpass, May 2002

Home ownership is at an all-time high, as are existing home sales. U.S. household wealth stands at a record $51 trillion.

Larry Kudlow, December 2004

While I agree that there is no such thing as a free lunch, it looks as though, despite the apocalyptic $600 billion trade deficit last year, household wealth indicates that we can enjoy greater consumption and have an increasing net worth. Oh before you say something about house of cards built on debt, these numbers include household liabilities.

[fallujah-nuker]

Toddsterpatriot posted "despite the apocalyptic $600 billion trade deficit last year"

What is so apocalyptic about our economy growing so much faster than our trading partners?

[ninenot]

net worth of households reached $40.3 trillion in 2001, up from $27.2 trillion in 1995.

Adjusted for inflation, of course?