Economic Slowdown Could Be Looming for the U.S. Economy
We are told on a daily basis that the U.S. economy is fine and that all’s well going forward. If you talk about a looming economic slowdown, you are ridiculed. Well, the people doing the mocking shouldn’t get too complacent.
Sure, unemployment is at its lowest levels in a few decades. For proof, consider that U.S. gross domestic product (GDP) grew at an annual pace of 4.2% in the second quarter of 2018. This was the best GDP reading in several years. (Source: “Gross Domestic Product,” Bureau of Economic Analysis, August 29, 2018.)x
The stock market also serves as proof of economic growth in the U.S. economy. It’s back to its all-time highs, with companies reaching $1.0-trillion valuations and having great-looking earnings.
So no worries, right? Wrong, because an economic slowdown could be brewing in the U.S. economy.
Understand that there are problems that nobody seems to be talking about. Sure, Amazon.com, Inc. (NASDAQ:AMZN) is on track to become the next trillion-dollar company, but that doesn’t say much about the struggles of average Americans.
Study Says the U.S. Economy Could Be Headed Toward an Economic Slowdown
Consider a recent study done by the Urban Institute, a think tank focused on economic and social policy research. This study is worrisome to the say the very least, and its findings are something you shouldn’t be seeing when there’s economic growth.
According to the study, in 2017, 40% of adults between the age of 18 and 64 said that they or their families had trouble paying for at least one basic need, be it food, healthcare, housing, or utilities. That’s four out of every 10 Americans struggling to pay for the most basic necessities. (Source: “Material Hardship among Nonelderly Adults and Their Families in 2017,” Urban Institute, August 28, 2018.)
Looking at this, if someone says there’s economic growth in the U.S. economy, they may not be entirely correct. This looks more like an economic slowdown. After all, economic growth is when the general standard improves.
More Americans on Food Stamps Than the Population of Canada
This is not the only troubling statistic that reveals that the economic growth we hear about daily may not be as robust.
For instance, since we are talking about basic needs: as of May 2018, there are 39.3 million Americans using food stamps. To put it in perspective, this number is still higher than what it was just before the previous economic slowdown of 2008 and 2009 and higher than the total population of Canada. (Source: “SNAP Web Tables,” United States Department of Agriculture Food and Nutrition Service, August 3, 2018.)
U.S. Economic Outlook
The U.S. economy isn’t as strong as we are told it is. Don’t listen to the noise; it’s not a good indicator that Americans are struggling financially.
In conclusion, ask yourself: “How can the U.S. economy continue to go on without an economic slowdown when average Americans are struggling to even pay for basic needs?”