over the next few years. But as we’re seeing, not doing enough isn’t a safe strategy, either." Economist Amir Sufi at the University of Chicago argued in July 2011 that a high level of household debt was holding back the U.S. economy. Households focused on paying down private debt are not able to consume at historical levels. He advocates mortgage write-downs and other debt-related solutions to re-invigorate the economy when household debt levels are exceptionally high. Several European countries also had high household debt levels relative to historical averages leading up to the European sovereign-debt crisis. Recent research also supports the view that excessive household leverage has contributed to the weakness in consumption. Effects on employment Rana Foroohar wrote in July 2012: "[R]esearch shows that the majority of job losses in the U.S. since the Great Recession were due to lower consumer spending because of household debt, a decline that resulted in layoffs at U.S. firms. Parting back debt is the precursor to greater spending and greater growth." Effects on economic recovery Neil Irwin explained the economic effects of rising consumer credit outstanding (i.e., all types of household debt other than mortgages) in July 2013: "Americans are finally feeling more confident about the economy and thus willing to take on debt. Lenders, meanwhile, are growing more comfortable extending loans. The spending enabled by this rising consumer debt can help create a virtuous cycle in which more demand for goods and services creates more jobs, which creates rising income. Indeed, more borrowing by households (and the spending that results) is likely offsetting some of the pain caused by federal spending cuts and deficit reduction." Reducing household debt Household debt can be challenging to reduce. Major approaches include: Paying down debt over time from income or accumulated savings, if available Debt write-down or refinancing via negotiation, bankruptcy or government bailout Inflation, although if wage increases do not exceed inflation, this approach is mostly academic Paying off debt from income or savings Since most middle income households have the majority of their wealth invested in their home, paying down debt from income can take a decade or longer when a housing bubble bursts, as it did for much of the developed world in 2007–2012. For example, this debt accumulated over a 30-year period (1980–2007 peak) in the U.S. and much of the increase was mortgage-related. Debt restructuring or write-down Debt can sometimes be