The Dual Economy: Unpacking Personal Debt and National Liabilities This episode reviews Chapter Twelve of American economist and economic historian Peter Temin’s The Vanishing Middle Class. Temin explores how debt operates at both the personal and national levels within the dual economy, underscoring the stark disparities between the financially secure FTE (finance, technology, and electronics) sector and the indebted low-wage sector. The chapter examines how individual debts—such as mortgages and student loans—fall disproportionately on the low-wage sector, often as a result of public policies that subsidize housing markets while reducing support for higher education. Temin critiques debt relief programs like the Home Affordable Modification Program (HAMP), which largely failed to help struggling households and instead bolstered financial institutions aligned with the FTE sector. He also extends the discussion to societal debts, including government obligations such as Social Security and Medicaid. Temin argues that the FTE sector frequently works to weaken these programs while paradoxically supporting higher national spending in areas like the military. Together, these dynamics illustrate how debt, both personal and collective, reinforces inequality and sustains the divide between America’s two economies.