15 Very Surprising Facts About The Messed Up State Of The U.S. Economy Video by Epic Economist
The U.S. economy is an absolute mess right now, and in today’s video, we are going to expose several stats, signs, facts, warnings, and forecasts that prove so. Over the past two years, the state of the U.S. economy has steadily deteriorated, and millions of Americans have never recovered financially from the economic shocks brought on by the health crisis. On top of that, they’ve been dealing with the highest consumer prices in over four decades, and living expenses are still soaring all across the country. U.S. consumers are losing confidence in the economy and have been curbing spending as their buying power shrinks. The younger generations are in disbelief, and most of young Americans, business owners and financial experts don’t see things getting any better any time soon.
“We will get a major recession,” Deutsche Bank economists alerted in a recent report. The problem is that while inflation is still soaring, the economists say it will take a “long time” before it gets back down to the Fed’s goal of 2%. That suggests the central bank will raise interest rates so aggressively that it hurts the economy. “We regard it as highly likely that the Fed will have to step on the brakes even more firmly, and a deep recession will be needed to bring inflation to heel,” Deutsche Bank economists wrote in its report with the ominous title, “Why the coming recession will be worse than expected.” That has led PayPal CEO Dan Schulman to sound the alarm about the financial situation of U.S. households. “The combination of high spending and high inflation means Americans are burning through savings at a rate that could have them running out by the end of this year,” he said. “We are already seeing a reduction in spending at lower-income levels for sure, and it’s moving up to middle-income right now,” Schulman said.
On the same note, a recent survey from the market research firm NPD Group uncovered that more than eight in ten US shoppers are planning to buy fewer things in the next three to six months. “There are storm clouds… it’s a hurricane,” JPMorgan CEO Jamie Dimon noted. “That hurricane is right out there down the road coming our way. We just don’t know if it’s a minor one or Superstorm Sandy.”
Squeezed by higher prices for everyday essentials, American households are taking on record amounts of debt to help make ends meet. With all that said, it’s understandable why almost half of Americans believe that cost of living is the biggest threat to their financial security.
We are in the middle of a long-term economic decline, and it is clear that the system simply does not work as it should anymore. Thanks to decades of reckless monetary decisions, this is only the start of our problems. Things are only going to get worse from here, and the U.S. population can already feel it. That’s why we gathered some important indicators that show things are getting off the rails in America once again.