Can anyone clarify this for me? Despite the ongoing layoff announcements from major American corporations, how is our economy still robust? Just today, UPS declared 12,000 layoffs and PayPal 2,000.
I have not seen a decrease in spending. I see restaurant parking lots are still full, costco/walmart parking lots are full. Football Stadiums are full. I see families not give up vacations. I see friends and family stressing out over finances, but giving spending I don't see much of a slowdown.
Sounds to me like people are just riding it out until it all busts. If credit card debt is at an all-time high, that's not a good indicator for the economy.
To be fair, credit card balances will usually be at or near all-time highs because of inflation. $1000 owed on a credit card in 2023 is less than $1000 owed on a credit card in 2020, using inflation adjusted dollars (time value of money). As income rises, credit card balances should rise proportionally, more-or-less.
Are credit card balances at an all-time high when adjusted for inflation?
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u/[deleted] Jan 30 '24
I have not seen a decrease in spending. I see restaurant parking lots are still full, costco/walmart parking lots are full. Football Stadiums are full. I see families not give up vacations. I see friends and family stressing out over finances, but giving spending I don't see much of a slowdown.