Public Policy Brief Highlight No. 90
July 01, 2007
Cracks in the Foundations of Growth
What Will the Housing Debacle Mean for the U.S. Economy?
With economic growth having cooled to less than 1 percent in the first quarter of 2007, the economy can ill afford a slump in consumption by the American household. But it now appears that the household sector could finally give in to the pressures of rising gasoline prices, a weakening home market, and a large debt burden.