CONTACT: Kai Swanson 309/794-7473 [email protected]
Web: http://www.augustana.edu
GIVE NO CREDIT TO MEMORIES OF A DEBT-FREE PAST
RROCK ISLAND, ILL.--"A river of red ink flows through American history," writes Dr. Lendol Calder, assistant professor of history at Augustana College, in his new book, Financing the American Dream: A Cultural History of Consumer Credit. The book, published by Princeton University Press, traces the history of consumer credit in America and draws the conclusion that, contrary to conventional wisdom, borrowing acts as a positive influence on consumers who might otherwise fall into hedonism. As Calder puts it, "Indolence is not an option for people living on the installment plan."
In researching the subject, Calder found that debt is a common theme throughout American history, going back to the Pilgrims' use of borrowing to finance their passage to the New World. During the course of this century, access to credit has grown steadily for women, minorities and younger consumers.
Rather than condemning the growth of consumer borrowing, Calder argues that those with credit cards and other loans must practice discipline and hard work. The process of "budgetism" entails a decision by consumers to regularize their income by removing it from their control and entrusting it to the moderation of outside forces such as credit bureaus.
While Calder maintains throughout that consumer credit must be properly managed in order to have this effect, his conclusions are nonetheless provocative. As Wall Street Journal reviewer Cynthia Crossen noted, "Americans feel ashamed about so-called consumption debt, writes Mr. Calder in prose that's clear as a bell, because they're psychologically frozen in a 100-year-old mindset that's not so different from the way they see sex: It feels good, but it's actually bad for you." (The Wall Street Journal, April 19, 1999.)
Editors: For more information, please contact Dr. Lendol Calder at 309/794-7679 or at [email protected]. Further information on the book is available at the Princeton University Press Web site, http://pup.princeton.edu/titles/6555.html.
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