“So are we in what Phil Gramm — remember him? — once called a “mental recession,” a sort of mass delusion that the economy is bad? It’s likely that some of Americans’ sour mood is driven by political unease.”
Ironically, it appears the “mention recession” occurred a year before the election; $4.00 eggs and runaway inflation: NOT!
Today, the concerns are 💯 on the money! While we haven’t seen major job loss: Yet! We have seen large defaults in auto loans and credit card debt. Medical debt has multiplied and is the leading cause for personal bankruptcies, and they are increasing exponentially each year; over 650k and growing annually.
In addition, hiring for recent college graduates is at an all-time low due to a combination of economic uncertainty, a tight labor market, and the increasing influence of AI. And these people have student loans!!!
Furthermore, while AI may improve workforce efficiencies, they also create massive layoffs into the future. We are a mixed economy dependent on 70% consumer spending, and 30% government spending. When workers are laid off, it means less consumer spending.
And let’s face it, the top 10% can only spend so much and they do so in certain high end markets, outside of our normal consumer staples. Therefore, many additional industries relying on everyday consumers are in jeopardy as well.
Coupled with Trump’s tariffs; taxes on consumers, our unsustainable growing debt which is leading to a deflated and devalued dollar, and Trump’s haphazard economic policies (destroying green initiatives and jobs), as well as so many other industries thanks to his depraved immigration policies, and we are headed into the perfect storm! IMHO…:)