Wall Street investors remain braced for a recession. But a turndown hasn’t yet materialized, due to strong demand from U.S. consumers. Spending makes up roughly 68% of the U.S. economy. It’s remained strong amid high inflation as high-income Americans draw down generous savings accrued in the pandemic. Lower-income Americans who may have exhausted their pandemic savings are increasingly turning to credit cards to finance daily life.
Chapters:
00:00 — Introduction
01:15 — Budgets
04:24 — Credit
06:13 — Split economy
Produced by: Carlos Waters
Supervising Producer: Lindsey Jacobson
Graphics: Christina Locopo
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How The U.S. Is Stalling A Recession…(read more)
BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
Title: How the U.S. is Stalling a Recession: A Closer Look at Economic Strategies
Introduction:
The United States is currently facing unprecedented economic challenges as it navigates the lasting impacts of the ongoing COVID-19 pandemic. With businesses shutting down, unemployment rates soaring, and consumer spending declining, concerns about a potential recession have become a prominent topic of discussion. However, various strategies and measures implemented by the U.S. government and the Federal Reserve have been effective in mitigating the severity of the crisis and stalling a full-blown recession. This article explores some key factors and initiatives that play a pivotal role in ensuring the country’s economic stability.
1. The Fiscal Stimulus Packages:
To counter the adverse effects of the pandemic, the U.S. government swiftly introduced substantial fiscal stimulus packages. Starting with the CARES Act in March 2020, these packages injected trillions of dollars into the economy, providing financial aid to individuals, small businesses, and impacted sectors. Unemployment benefits, direct stimulus checks, and the Paycheck Protection Program (PPP) alleviated the financial strain on households and helped businesses stay afloat. These measures boosted consumer spending, prevented a deeper economic slump, and acted as a crucial buffer against a recession.
2. Monetary Policy:
The Federal Reserve, the central bank of the United States, implemented several measures to enhance liquidity and support the economy. By slashing interest rates close to zero and implementing quantitative easing measures, the Federal Reserve aimed to encourage borrowing and investment, thereby stabilizing financial markets. These actions also prevented a credit crunch and eased the burden on both individuals and businesses, ultimately fostering economic resilience.
3. Targeted Industry Support:
Recognizing the vulnerability of specific industries during the pandemic, the U.S. government implemented targeted support to prevent systemic failures. For instance, the airline industry received significant financial assistance to preserve the national aviation network. Additionally, the manufacturing and healthcare sectors have received support through regulatory waivers, grants, and tax relief measures. These interventions have bolstered these industries, preventing significant job losses and ensuring their continued operations.
4. Vaccine Distribution:
The successful development and distribution of COVID-19 vaccines have been instrumental in stalling a potential recession. Vaccines have allowed businesses to reopen, rekindling consumer confidence and stimulating economic activity. As more individuals get vaccinated, the likelihood of future lockdowns decreases, leading to increased investments, job creation, and improved economic indicators.
5. Long-term Infrastructure Investment:
The U.S. administration has recognized the need for long-term economic recovery and growth. In response, the government is actively pursuing substantial investment in infrastructure development. Proposed plans involve modernizing transportation systems, updating public infrastructure, and fostering clean energy sources. These projects will not only create jobs and stimulate economic activity but also lay a solid foundation for sustainable economic growth in the future.
Conclusion:
While the U.S. continues to face economic challenges, the concerted efforts and the implementation of various strategies have successfully stalled a recession. The combination of fiscal stimulus packages, monetary policies, targeted industry support, vaccine distribution, and focus on infrastructure development have played a pivotal role in stabilizing the economy and instilling confidence. As the recovery process continues, it remains essential to closely monitor economic indicators and adjust strategies accordingly to ensure a sustained and robust economic rebound.
It surprises me why everybody gets really worked up about recession and inflation data. Inflation has always existed, and people have been using investments to beat the inflation. The stock market return, for example, always beats inflation. I heard of someone who invested $121k last October, and has grown the portfolio by more than $400k. I need recommendations that can give me similar return.
There have been several transactions with both strategic investors and private equity over the past 15 years since the Great Financial Crisis — oftentimes the PE component was not 100% and the capital raises were far less than $400 Million, money moves quickly from the hasty to the patient. The biggest hurdle for investors is maintaining mental control through losses, and investing in the right places at the right time
I recently inherited almost $500k. I REALLY need to make this money work for me, and not just disappear over time. I've been scrambling for somewhere to put the money, where I can make an effort to use the gains to pay bills so I can quit my job or should force early retirement. All roads have pointed to the financial market of some sort which is a good idea buh where else should I put money besides the financial market? We have a 13% RPI rate so cash is tough.
Last year, Powell tanked markets while pledging to continue an aggressive fight against inflation. This year, investors hope a more gentle message will be delivered with inflation off the boil this summer. I’m thinking of investing $400k into my stock portfolio but unsure about the market.
This is financial advice and I never give financial advice: DONT LEAVE DURING THE BEAR. If you don’t want to invest…learn. If you don’t want to learn…build. If you don’t want to build observe. DO SOMETHING…other than leave. There is so much opportunity here. Take advantage!
This is financial advice and I never give financial advice: DONT LEAVE DURING THE BEAR. If you don’t want to invest…learn. If you don’t want to learn…build. If you don’t want to build observe. DO SOMETHING…other than leave. There is so much opportunity here. Take advantage!
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got talking about investment and money. I started investing with $120k and in the first 2 months , my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and gets more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family….
I used to think every investor went broke during recessions, meanwhile some make millions. I also thought everybody went out of business during the Great Depression, but some went into business. Bottom line, there's always depression for some, and profit for others, it all starts from having the right mindset. That said, I've set asides $250k to invest for future, unfortunately l'm a complete noob.
Personal thought, in the Midwest a single individual to live comfortably month to month needs to gross more then $72,000 a year. Non home owner.
the long and the short of it is that no one really knows what is going on in the economy. One thing is sure, if you are working in services and hospitality you are not making enough money to buy toilet paper to wipe your ass. Which is fully 30% of the american population. Come to America. The streets are paved in Gold, only you can't buy toilet paper to clean your butt.
Every day we encounter novel challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2023, how can we enhance our earnings during this period of adjustment? I cannot let my $500,000 savings vanish after putting in so much effort to accumulate them.
Income inequality has always been a pervasive part of any democratic capitalist society, because the policies that are enacted favor the business interests and ownership class. Since the 1970s (Lewis Powell Memorandum, Neoliberal School of Thought, Mont Pellerin Society), we've had pro-business policies that have hurt labor and trade unions collective bargaining power to have and negotiate better wages, and relatively better working conditions – compared to other wealthy nations, who permit a degree of negotiation. Also, neoliberalism took a hold since corporations and businesses alike starting consolidating their power to lobby our lawmakers, to push against wage hikes and raising the federal minimum wage. We have more states favoring businesses with lower corporate income taxes, in order to gain more revenues for the states. Wages have not been in tandem with the soaring profit margins of many industries. What people don't know is that we don't live in a free market where the rules are fair, impersonal, and neutral. We have seen corporations exploit workers, race to the bottom, and gouge on prices. Costs of living have skyrocketed not only due to supply-chain issues and cost of production, but due to the fact workers have little to no negotiation rights, and many people have suffered under unrestrained and unfettered markets. Corporations and businesses alike are going to move their manufacturing to places with lower wages, lower work standards, resulting in the highest returns. If people have no spending power, they're going to borrow on credit – overwhelming not only households but banking institutions and financial institutions.
We have a system that favors and elite group of plutocrats that provide goods and services our government doesn't adequate provide anymore – due to privatization and defunding of programs that amend market failures. We have a dual-party system that are both pro-business and neoliberal. They do not want workers to have the countervailing power to fight against big businesses and corporations. We have a entire generation of well-educated, productive, and highly skilled workers who aren't getting paid adequately for their due diligence and hard work. We have politicians, courts, and administrative heads who enact market-oriented policies that give the wealthy and rich a system built advantage. Rather than the economy serving average American households, we are a slave to the economy that has become so lopsided by unfettered and unrestrained markets that have helped the ownership class. Truly, the love of money is the root of all evil – see how it has devastated our system.
Instead of bullshitting about our misery, it’s time for another American Revolution #takeoutthetrash
The US economy is grappling with uncertainties, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.
Youngsters starting in investing need to learn the ropes, know how much risk they can handle and spread their investments around. Some folks get help from money experts or do their homework before making investment moves. It's all about being smart with your money.
Классный канал, от подачи не устаёшь
People continue to spend because we need to eat, house, and transport ourselves.
Corporate America has got us pinned and they love it.
The perfect storm in a tea cup
Call it what you want, it doesn’t feel healthy and prosperous for most of us.
Pretty soon we will be charged for breathing.
Last year, Powell tanked markets while pledging to continue an aggressive fight against inflation. This year, investors hope a more gentle message will be delivered with inflation off the boil this summer. I’m thinking of investing $400k into my stock portfolio but unsure about the market.
If the average household holds $10,000 in credit card debt, how is the "average consumer doing well," exactly?
CC debt has exceeded 1T for the first time in history. If Americans have so much money to spend, why are they putting it on their CC's @ +20% interest? The recession is inevitable!
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.
❤ thanksdrsyeda karenfactory❤
Biden's economy. No matter how CNBC sugar coated it
so the goal is basically drain the middle class's bank account. so the goal is basically drain the middle class's bank account.
The real truth is that consumer spending is based on a pile of debts on credit cards with high interest rates. That's a real recipe for a real disaster.
Inflation depreciates idle money. I'm in a privileged position to be able to save almost 65% of our net household income, as I placed it on safer investments. The key for us was not spending beyond our means. If you invest and have other sources of income outside of dividends then you will be able to live off dividends. Got north of $200K in my portfolio as I bought a lot of dividend stocks before, I'm buying more now, and I will buy more when it drops further
If USA stopped printing money today, it'll be collapsed by tomorrow.
No one is spending beyond their means bc their is no money to do it with. The struggle between rent and food is game on. Let the crime & homelessness begin! Americans need help
the upcoming pandemic will allow the worlds deep state to end humanity for damn sure
I work in a factory. Sales are low. They have been tight on overtime since March. Now starting this month they are cutting our scheduled hours. I hope things gets better in 2024.
Put fools in charge suffer the consequences
Hi, it reach one trillion yesterday
C'Mon Man…….We're Building Back Better……LOL
People really believe the future will be cheap. Lol
This is the end of cheap goods and services in America forever.
Including other countries.
As long as there is a camera in your face you are their product.
Where are people getting all this money from?!
Don't say: job. That doesn't make sense. Inflation is outpacing income raises.
High prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.
My theory:
AI is reluncantly able to take over many jobs, to produce economic output. So the more AI is replacing jobs, the more economic output produced in theory. So when companies dont use AI and people dont reproduce enough… it means companies are not producing enough profit. When there is an overwhelming supply of money and people dont produce enough goods, you get inflation.
There are MANY copyright issues regarding celebrities, art shows and entertainment online, as you have heard. So AI has to be used to produce original content and economic output and profit… so where else people gonna get profit from – copying and violating someone elses work? Destroying more natural land habitat and resources??? Which is why Christopher Columbus saled the seas in the 1400's to discover more land for profit for the economy…. and hence why YouTube removed many videos and content back a year ago to make room for new content
There was an AI surge in the last year, so that is probably why the prices went down temporarily. Once the surge was over, the temporary gas price lowering was over. Now prices will just go up.
Keep spending on overpriced market? You guys are stupid, unfortunately most businesses owners will always kills us.
Stay low key, bull market in 2025
Its fake news
I sure hope she knows how blessed she is to not even have to look at the price of food before buying it!!