And there are more who produce their fortunes but not like jack Ma. We all know these are challenging times for the global economy everywhere in the world. People are losing money. Many fear recession, is now unavoidable in some countries. It is already happening. Leading economies of the world are Contracting, which includes the United States. The US economy is Contracting but the u.s. is not ready to accept that it is in recession. Let me share some numbers in the first quarter of this financial year. The US economy contracted by how much 1.6 percent yesterday.
Main Point Why America in a recession
Fresh numbers came out this for the last three months. The second quarter The American economy has contracted again this time by 0.9%. The US economy has contracted for two straight quarters. This is the definition of recession negative growth for two quarters but America refuses to accept this it. Rejects the claim that a recession is here. Different officials are giving different. Explanations. The US Federal Reserve. Chairman says, growth is slowing. That’s all labor market is extremely tight, and inflation is much too high. So I do not think the u.s. is currently in a recession. As I mentioned, it’s true that growth is slowing
US Treasury secretary and Italian has put her own spin on this data. She too says that the US is not in a recession. Then what is it? Yellin likes to use the word weakening. She says the US economy is getting weaker. Most economists in most Americans have a similar definition of recession. Substantial job, losses, and mass layoffs. Businesses shutting down private sector activities, slow and considerably family. Budgets, under immense strain in some, a broad-based weakening of our economy.
What about the president? What is Joe Biden? See, how does he assess America’s economy? The president is in total denial mode. Let me speak to one of the issue. The GDP and whether or not there we are in a recession. Both chairman Powell and many of the significant banking personnel and Economist say we’re not in a recession.
That is no recession. Growth is slowing. The economy is weakening three different people with three different explanations. It doesn’t change the facts. However, it is a fact that the US economy has contracted for two states straight quarters, the u.s. government might not declare a recession and yes, there are different ways to assess how an economy is performing. But if you ask the people of America, they’re already feeling a recession. They feel the pinch of rising prices.
And the rising interest rates Americans are no longer confident about their economy. Recently, a survey was conducted and American citizens, were asked what they feel about their economy. The results are revealing consumer confidence has dropped to its lowest level since February 20 21, What are Americans worried about the most inflation? They say they’re worried about the price of gas about the rising price of food, items. Americans are putting off big-ticket purchases for many plans to buy cars and major appliances are on hold now. Fewer Americans want to buy a home. Demand is at its lowest since 2015 and this sentiment is also reflecting in sales home sales have dropped to a two-year low in the US. What does all this mean? When people put off Major purchases. They want to make sure they can afford Essentials.
The basics live food and fuel. When do people fear? They may not be able to make ends meet when they’re afraid of losing their jobs officially Americas job numbers look. Good unemployment numbers are below 4%, and that’s a good thing, but people fear, they could lose their jobs. In the coming months, I have more numbers. 78 percent of workers in the US are worried today. They fear, they could lose their jobs. Managers also fear, they will have To make Cuts 87 percent of managers, say, they’re likely to order layoffs. So it doesn’t matter what the lawmakers say, what their spin is, you might not call the situation A recession yet, but Americans are feeling the pinch. They say for them, recession is already here.