Krystal and Saagar discuss the latest economic data and how Americans feel about the current state of the US economy.
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Americans Feel RECESSION Despite Inflation Cooling | Breaking Points
In recent times, there has been an interesting contrast in the economic indicators in the United States. While inflation appears to be cooling down, many Americans still find themselves dealing with the effects of a recession. This phenomenon is an unusual occurrence that has left experts puzzled, as it defies conventional economic wisdom.
Inflation, which measures the rate at which prices for goods and services rise, has been a cause for concern in recent months. However, there seems to be some relief on the horizon as inflation rates have started to stabilize and even decrease in some sectors. This news should be seen as a positive sign for Americans, as it means that the rising cost of living might start to ease in the coming months.
But despite these developments, there is a prevailing sentiment among Americans that they are still living in a recession. This perception can be attributed to several factors that continue to impact the everyday lives of individuals and families across the country.
First and foremost, the job market remains highly volatile and uncertain. Many Americans have lost their jobs or experienced significant income reductions during the pandemic, leading to financial instability. While the economy has shown signs of recovery, with new jobs being created and unemployment rates decreasing, the recovery has been uneven, leaving many people struggling to regain their pre-pandemic financial footing.
Furthermore, the pandemic has exacerbated existing social and economic inequalities. Minority and low-income communities have been disproportionately affected by the recession, compounding the perception of economic hardship. These communities often face significant barriers to accessing quality education, healthcare, and employment opportunities, further perpetuating the cycle of poverty.
Another factor contributing to the sense of recession is the rising cost of essential items such as housing, healthcare, and education. While inflation as a whole might be cooling down, the prices of these necessities have been steadily increasing, making it difficult for many Americans to make ends meet. This rise in costs, coupled with stagnant wages for some, has led to a feeling of economic stagnation.
Finally, the psychological toll of the pandemic cannot be ignored. Even with the easing of restrictions and the increasing number of vaccinated individuals, many Americans still grapple with anxiety, fear, and uncertainty about the future. This has a direct impact on consumer spending and confidence in the economy, further perpetuating the sense of recession.
Overall, while it is encouraging to see inflation cooling down, it is important to recognize that many Americans still feel the effects of a recession. The combination of an uncertain job market, increased economic inequalities, rising cost of living, and the psychological impact of the pandemic has created a unique circumstance where economic indicators do not align with people’s lived experiences.
Moving forward, policymakers and economists must address these underlying issues in order to bridge the gap between economic indicators and the reality felt by Americans. This entails implementing targeted measures to stimulate job growth, address income inequality, and make essential goods and services more affordable. Additionally, investing in mental health support services and providing economic relief for those most affected by the pandemic are crucial steps in rebuilding and strengthening the economy.
Ultimately, by recognizing and addressing the disconnect between economic indicators and people’s lived experiences, policymakers can work towards creating an economy that truly benefits all Americans, leaving behind the feelings of recession and promoting a sense of stability and prosperity.
Read The Secrets Of The Federal Reserve by Eustace Mullins.
You are not living in the real world prices have doubled in some cases tripled. Thats like 100% big deal 15 hour should be more like 27 hour. This show os so out of touch with Reality.
I'd say rent/housing + the hard increases in insurance costs really sets off the red flags for people. Even though there are declines in other areas, most of them are still much more expensive then they were just a few years ago.
All prices/costs would have to deflate in order for us to not feel the inflation/depression/recession
Krystals' characterization of wages being up "significantly" over inflation is just silly. Wages are up 4.4% compared to 4% inflation. That means people got a 0.4% raise relative to inflation. I imagine if Hollywood execs offered a 0.4% raise to the writers on strike, she would feel very different.
The essential food, gas (some, but not much), rent, car maintenance and insurance prices have not dropped, yet inflation supposedly has dropped from 9 to 3%. I heard on the news recently that food prices will not retreat. Once up, always up. Some food packaging sizes have been reduced even though the cost per weight has not. Creative inflation packaging and math to confuse the mind, IMO.
Recessions are part of the economic cycle, all you can do is make sure you're prepared and plan accordingly. I graduated into a recession (2009). My 1st job after college was aerial acrobat on cruise ships. Today I'm a VP at a global company, own 3 rental properties, invest in stocks and biz, built my own business, and have my net worth increase by $500k in the last 4 years.
This is all on credit. People are spending way beyond their means. There are 40 million people on snap benefits. Wages aren’t out stripping inflation. Inflation compounded for years, if you have 7%, 9%, 4% and THEN you get a 5% raise…. You aren’t higher than inflation, you still got taken for 13%
Fun fact, inflation run at its peak recently June of last year. Of course the inflation numbers are going to lower compared to last year when oil prices were at their highest. July will also have a low inflation numbers for the same reason. The numbers will start picking up again around September.
Also, inflation going up less doesn’t mean prices are coming down. We would need a strong amount of deflation to get prices to come down to pre pandemic levels. That will never happen. Our higher prices are here to stay.
Last point, because of the way they calculate GDP, we won’t see an official recession because the price increases are going to keep GDP numbers up over last year, even if the number of items sold were lowered by 20%, the 25% price increase will make GDP still show growth.
I'm always curious when they say "wages are up". Who's wages?
Economic divide still too big. So government tells the public things are getting better, and people still need 2 jobs and a roommate just to afford rent
My health insurance reset it's out of pocket maximum last year in October, so I had to pay another $2,000 dollars our of pocket above and beyond the out of pocket maximum at the beginning of the year at $3500. Then I had a $5,500 out of pocket maximum I had to pay for January and February medical care. Then my company negotiated with a new insurer. My biweekly paycheck is now $250 less and I have a lower out of pocket maximum of $2,000 but I have to come up with it again. On top of that I paid for cancer meds my wife needed by the insurance company death paneled my wife. I have hospital bills that should have been fully covered but the insurance company is fighting it, leaving me in spiraling debt, all while dealing with skyrocketing inflation. I am going to go bankrupt. It was that or let my wife die. She's recovering now, but the chemo meds damaged her teeth beyond repair and they all need to be removed and she needs dentures. I'll have to find a way to fabricate $50,000 dollars that I don't have and can't borrow because this isn't covered by medical insurance and dental insurance is a joke. This country's medical system is a nightmarish hell on earth. I want it to die so anything can take it's place because anything would be better.
There is corrupt at the highest level of every branch of government at the national level, in every state, and most local governments as well. This corruption flows from power industries, private interest, and billionaires to the government and back like blood from the heart to the brain. We have inflation because companies swallow the competition and then jack up the prices with no reasonable competition left. We have inflation because companies like Facebook, Apple, Google, etc. hired people to keep them off the market to stifle innovation, which cratered productivity and hampered entrepreneurship. We have inflation because retirees have their money in interest bearing accounts and those are going through the roof each time the Fed jacks rates. We have inflation because the government borrows endlessly against America's future to minimize taxes on everyone from the middle class to the billionaires and that borrowing devalues our currency. We have inflation because private equity companies buy up hospitals and other medical providers and make it so miserable to work there we're losing medical professionals. In the past, I was told about long wait lists in Canada. Now we don't even have wait lists, there are just medical services you can't get. The one thing that hasn't caused inflation is the pittance of relief the government has enacted during the Covid-19 madness. That was to mollify people just enough so they didn't show up with torches and pitchforks and for a convenient scapegoat to blame inflation on.
Most of you people in the comments sound like you don’t know anything about buying/owning houses. Do you have a savings account towards a down payment on a home? Have you gone to a mortgage broker and talked to them about your credit and what you will need to change to be able to get a loan? Have you gone to the government website (CPFB) about understanding mortgages and loans? Have you taken a Personal Finance class? Have you tried to learn basic carpentry and repairs? Do you budget your money? Do you eat at restaurants? Do you buy coffee at Starbucks?
Don’t just listen to Krystal’s “poor me”, get going and change this for your family. It will take all your effort and make all the difference for your family.
Everything is up! Rent is up 40%! Who gives a shit if eggs are down 30¢ a dozen? We are being gaslight by the media. The bankrupting of America is full blown and the elites are mocking the masses. We need another American Revolution.
Who is getting better wages?
I think we're headed for deflation and a real collapse of all asset prices. I'm in Boston so I think my property will avoid it but places like Las Vegas most of those people are service sector employees how can they buy a million-dollar?
Real inflation is NOT cooling. FFS. Everyone insists on gaslighting. Real inflation, not the new manipulated redefined inflation definition, is NOT cooling.
For the first time in decades, america is losing its clout as a federal reserve currency. They don't have any more economies to use to control inflation, and less money is being spent on stock and oil trading than in the past. They all lend support to the idea that a new multilateral world order is in the works.. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stocck portfolio.
Used car prices went up 40% during the pandemic. And is now down 5%.. that is not good
It's very bad that things like gas, used cars, meat, and flying are getting cheaper. All of those things are very environmentally harmful. Figures that unevolved fools who obsess on money and material things think it's good that those things are cheaper.
I'll start trusting the numbers when administrations stop changing the way things are calculated to best reflect their own interests. Until then, I'll trust my own eyes and wallet.
As long as unemployment is low people have income that's what's most important. It's not a recession. You can't expect everything to get better that fast. We have been making progress and we will continue to. Give it a few months as I see interest rates starting to decrease and once rates get to around 5% say within a year people will start selling homes again increasing the supply which will decrease housing prices.
Part two of this segment because we obviously can’t handle it all in one sitting.
Prices aren’t coming down one iota. Krystal is always a moron when it comes to economics
Inequality has come down?
Inflation down but I am still paying 25% more in rent, 20 to 40% more in groceries and basically double on a full tank of gas. No the economy is not better and its not going to be in a long time. Biden has been a fucking failure on how to run an economy and its going to get even worse.
The flights to vacation locations are fully booked and that is your argument the economy is weak?