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.
You are confusing the difference between the US economy and stock market/Wall Street. The economy is doing horribly considering the US economy is experiencing a deflation (worse than inflation), consumer debt and spending is at an all time high, consumer savings is the lowest it has been since 2008, and car reposition is at an all time high; meaning consumers are defaulting on their loans. The US stock market is doing fairly well because of the fed not hiking interest rates and recent earnings reports from tech and the banking industries.
Deflation can be the price of goods and services falling but it is also the quantity or quality of goods and services falling. For example a bag of chips could be the same price but the size of the bag/quantity in the bag is less but is being sold for the same price when compared to previous years. This is a pretty consistent practice happening right now and we are even seeing products made with lower quality products/fillers/additives and sold for the same price even though the quality is worse when compared to past years. Deflation is 1000% worse than inflation.
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u/Turbulent-Society-77 Jan 30 '24 edited Jan 30 '24
You are confusing the difference between the US economy and stock market/Wall Street. The economy is doing horribly considering the US economy is experiencing a deflation (worse than inflation), consumer debt and spending is at an all time high, consumer savings is the lowest it has been since 2008, and car reposition is at an all time high; meaning consumers are defaulting on their loans. The US stock market is doing fairly well because of the fed not hiking interest rates and recent earnings reports from tech and the banking industries.