• Red_Sunshine_Over_Florida [he/him]
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    edit-2
    8 months ago

    Is this the beginning of households breaking under the taking credit with increased interest rates? I wonder what that would mean over the next couple of years?

    • ☆ Yσɠƚԋσʂ ☆@lemmy.ml
      hexagon
      ·
      8 months ago

      Given that most people are living paycheck to paycheck, that means they're simply not able to absorb continued increase in cost of living. Meanwhile, we see inflation keep climbing while salaries are stagnant. Something will definitely have to give here.

      https://fortune.com/2024/02/01/emergency-1000-expense-most-americans-broke-debt-bankrate/

      • PeeOnYou [he/him]@lemmygrad.ml
        ·
        8 months ago

        pg&e announced they'll be trying to curb their planned annual electricity and gas price increases to under 5% from the current nearly 20% over the past two years

    • Rx_Hawk [he/him]
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      edit-2
      8 months ago

      The economy is overdue for a recession. I don’t mean that facetiously, we’ve been in a growth stage since 2009.

      Of course that’s all in the capitalistic framework, if we didn’t have the need for unfettered growth, recessions wouldn’t be needed either.

        • Rx_Hawk [he/him]
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          edit-2
          8 months ago

          shrug-outta-hecks

          I have a very basic understanding of economics, but recession would definitely reduce inflation.

          I think the real issue is that the "economy" and markets are so disconnected from the reality of the everyday American. Wealth inequality was already bad in 2008, but its only gotten exponentially worse. Who cares if the stock market is good and GDP growth is steady if none of that value is making its way to the workers' pockets. Shit is bad out here but the market movers fail to see that.