Maxed Out

Introduction:James D. Scurlock offers a groundbreaking look into the culture of debt that has been institutionalized over the past generation. From Washington, DC to Macon, Mississippi, to Beverly Hills, CA, Scurlocks reveals the breadth and depth of America's dependence on easy credit to finance war efforts, tractors, mobile homes, to acquire the best body and face that plastic surgery can provide and, of course, to keep the American Dream -- home ownership -- a reality. Scurlock builds a compelling case that the individual is not solely to blame for rising consumer debt, just as irresponsible "gamers" are not the cause of skyrocketing bankruptcy rates and the now-infamous "subprime" borrowers did not precipitate the international credit crisis ; indeed, Scurlock uncovers how revolutionary changes in the banking, credit, and debt collection industries virtually ensure that consumer debt continues to mount, month after month, in order to realize double-digit profit growth. But, Scurlock argues, the financial industry has not changed the laws of mathematics; they have only postponed the day of reckoning. It is now up to individual Americans to re-examine their lifestyles in the context of new definitions of financial success and security. Ultimately, each of us must decide if the American Dream can really be purchased with easy credit.Discussion Questions:1. What does Scurlock mean when he says that debt is the only product of the banking industry? How do banks sell and ensure their profitability from this product? Does Scurlock's conceptualization of debt as product alter your understanding of the role and nature of banks? Why or why not?2. How did Dee Hock's introduction of the credit card impact people's understanding of and relationship to money? What two characteristics of consumer credit were exploited by Hock's Bank Americard?3. How has credit been marketed to consumers? What roles do distinctions between good and bad debt and high and low credit scores play in this marketing process? Do the aforementioned distinctions have meaning outside of the credit marketing process? Why or why not?4. What are some of the commonly used metaphors for credit? How have these metaphors been internalized by consumers? Which of the metaphors resonate with you?5. According to Bob Manning, professor at Rochester Institute and Technology, what underlies America's addiction to credit? Do you agree or disagree? How does Scurlock's exploration support or challenge his claim?6. What were the banking practices and government policies towards banks in place prior to the 1970s? What assumptions did the banking industry and the federal government make about the American consumer and their responsibilities to them? How and why did banking practices change? How has this contributed to the recent international crisis in subprime mortgage lending?7. According to Scurlock, how does the federal government participate in and maintain the culture of debt? What government indices of progress are tied to the culture of debt? How does Scurlock suggest that the federal government evaluate its success?8. How has the meaning and value of homeownership evolved for the American consumer? What do terms such as American Dream, home equity and refinancing mean in the current debt culture?9. What does the term "debt snowball" mean? How do public misconceptions of "debt snowballing" extend rather than curtail consumer debt?10. What roles do financial gurus such as Dave Ramsey of Financial Peace University and Suze Orman play in propagating the culture of debt? What does Scurlock suggest underlie these gurus' glorified status in popular culture? Do you agree with his analysis? Why or why not?11. Scurlock proposes that the solicitation practices of the tobacco and alcohol industries are analogous to those employed by the credit industry. What does his analogy reveal about the nature of Americas' relationship to credit aScurlock, James D. is the author of 'Maxed Out', published 2007 under ISBN 9781416532538 and ISBN 1416532536.