Death Of the Consumer Economy: Over A Third of U.S. Adults Now Struggle to Pay for Their Most Basic Expenses

New American Prophet ^ | September 7, 2024 | Michael Snyder

[Rev M. Bresciani]

When U.S. consumers are doing well, the U.S. economy does well. But of course the opposite is also true. When U.S. consumers are not doing well, the U.S. economy really suffers. The government has been trying really hard to put a happy face on things, but the truth is that the standard of living for most U.S. consumers has been going down for a long time. The cost of living has been rising faster than paychecks have, and so most of us have less discretionary income than we once did. And that is really bad news for the U.S. economy, because as the official White House website has pointed out, consumer spending typically accounts for about two-thirds of all economic activity…

Consumption spending makes up two-thirds of the U.S. economy on average, so as the U.S. consumer goes, so goes the U.S. economy.

[Starboard]

“You CANNOT plan on living on social security.”

***************

Absolutely true. Its not really “security”; its more like a supplement to (hopefully) other sources of income.

And then there’s the inflation problem that affects every source of income.

[Starboard]

Spot on post. The costs of all the necessities of daily living (food, shelter, utilities, transportation, insurance, taxes, medical, etc.) have been driven up by inflation. Then add to that the high cost of debt service (e.g., interest rates on credit cards). The consumer is tapped out. Even the customers of dollar stores are pulling back.

Many pundits are expecting a Fed interest rate cut(s) to turn things around but consumers are so strapped and loaded up with debt that they are not in a position to take out more debt, even at lower rates.

Consumer weakness is here to stay for a while.

[Ruy Dias de Bivar]

I retired with a small pension and SS back in 2008. I did well during the bad Obama years and great TRUMP years but now have to pinch every penny and make it squeel.

Biden inflation is the worst thing that has ever happened in my lifetime.

[brianl703]

Just like how the IRS will process a return you owe on in less than 2 weeks and suck that money right out of your bank account...

...but if you are due a refund they drag their feet. I have a return for my deceased father that is now going on 16 months without a refund being issued—and the IRS has thrown up every single road block they can (the refund due is substantial).

[Texas resident]

I used to be able to feed 5 people on what it costs to feed 2 today.

[Sequoyah101]

I expect worse