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Originally Posted by chassis
What is the true state of the economy?
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Somewhere between good and bad, the true state of the economy is kinda unmeasurable right now.
It's being fueled by those still doing well, debt, and the government. But it's not sustainable.
Inflation is still outpacing wage growth. Excess immigration is big factor in keeping wages down for non-degree jobs. Opportunities for college graduates keep dropping, any current job growth is in the non degree sectors.
Inflation and shrinkflation is still a problem which the government still can not accurately measure.
More people are getting 2nd jobs to cover expenses and those previously with multiple jobs are struggling where it might of been enough before. Eventually they will run out of debt to cover.
Defaults on consumer debt are increasing and the potential to get out of control could be on the horizon.
Over 50% of adult children in 20s or 30s receive some financial support from their parents. Over 50% of young adults 18-29 are still living at home. Both of these are eating into their parents savings which will hurt them down the road. Which is also the driver why many adults 65+ are still working.
The struggles of Z, Millennial, whatever are real. In my neighborhood there are more 20 something kids living with their parents than those who have moved out. Of my friends over half of them provide support to kids who graduated college or working without a degree. Student debt and housing costs are a big factor young people struggle with, also their financial dysmorphia that they think they should have all the nice things and a high paying job out the gate.
Yet magically the market is still doing well, profits are being maintained or growing, driven by job cuts or taking advantage of inflation.
Perhaps things won't get bad but it's hard to predict as there are so many ticking time bombs we are sitting on.