{"id":2084655,"date":"2023-10-30T19:22:04","date_gmt":"2023-10-30T23:22:04","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-united-states-is-borrowing-its-way-to-disguise-recession\/"},"modified":"2023-10-30T19:27:05","modified_gmt":"2023-10-30T23:27:05","slug":"the-united-states-is-borrowing-its-way-to-disguise-recession","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-united-states-is-borrowing-its-way-to-disguise-recession\/","title":{"rendered":"US Borrowing Masks Recession"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">8<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fthe-united-states-is-borrowing-its-way-to-disguise-recession%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2084655&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<h2 class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/h2>\n<ul>\n<li>\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-4 sm:line-clamp-3\">\n          <a href=\"http:\/\/www.theepochtimes.com\/article\/analysis-us-government-testing-limits-of-ballooning-debt-deficits-5509135?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3 class=\"text-sm sm:text-base\">ANALYSIS: US Government Testing Limits of \u200bBallooning Debt, Deficits<\/h3>\n<p>          <\/a>\n        <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">10\/27\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[70px] sm:basis-[120px]\">\n        <a href=\"http:\/\/www.theepochtimes.com\/article\/analysis-us-government-testing-limits-of-ballooning-debt-deficits-5509135?ea_src=author_manual&#038;ea_med=related_stories\">\n          <picture><source type=\"image\/webp\" https:><\/source><source type=\"image\/jpeg\" https:><\/source>\n          <\/picture>\n        <\/a>\n      <\/div>\n<\/li>\n<li>\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-4 sm:line-clamp-3\">\n          <a href=\"http:\/\/www.theepochtimes.com\/opinion\/the-us-government-shutdown-is-not-the-problem-public-debt-is-5502163?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3 class=\"text-sm sm:text-base\">The US \u2064Government Shutdown Isn&#8217;t the Problem. Public Debt Is<\/h3>\n<p>          <\/a>\n        <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">10\/2\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[70px] sm:basis-[120px]\">\n        <a href=\"http:\/\/www.theepochtimes.com\/opinion\/the-us-government-shutdown-is-not-the-problem-public-debt-is-5502163?ea_src=author_manual&#038;ea_med=related_stories\">\n          <picture><source type=\"image\/webp\" https:><\/source><source type=\"image\/jpeg\" https:><\/source>\n          <\/picture>\n        <\/a>\n      <\/div>\n<\/li>\n<\/ul>\n<\/blockquote>\n<p>The headline economic figures for the\u2064 United \u2062States look robust. However, \u200dupon closer examination,\u200c concerning weaknesses emerge.<\/p>\n<p>Real \u2064GDP growth in the third quarter surged to an \u200bimpressive 4.9 percent, surpassing the consensus estimate of 4.5 percent. While this\u200b is positive\u200c news, some analysts, including Bloomberg,\u2063 had even higher expectations\u200d of\u200c up to 5 percent growth \u2062based on the nowcast estimates.<\/p>\n<p>Despite low U.S. unemployment at 3.8 percent, real wage\u2062 growth remains negative, according \u200cto the \u2062Bureau of Labor Statistics. Over the past year, there has been a 0.1\u200c percent decrease in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/record-number-of-americans-are-quitting-jobs\/\" title=\"Record number of Americans are quitting jobs\">real average weekly earnings<\/a>. This means that despite a tight labor market, workers&#8217; real disposable\u200b income is not improving. Additionally, the labor participation \u2062rate\u200b and\u200d employment-to-population\u2064 ratio are still below pre-pandemic levels. Rising taxes and inflation further erode wage growth, making the \u200csituation more complex than what the headlines suggest.<\/p>\n<p>The cracks in the bullish economic story will\u2062 soon become \u2062apparent. Consumer \u200dspending experienced a\u2062 strong 4 percent annualized growth rate\u200d in the third quarter,\u2062 surprising most analysts who had anticipated a weak 0.8 \u2063percent growth based on \u2064the previous reading. However, the worrying fact is\u2064 that this\u200b rise in \u2063consumption is largely fueled by increased debt.\u2062 U.S. consumers are heavily borrowing to finance\u2062 their entertainment expenses. The\u2062 growth in services\u200c was \u20623.6 percent, while <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-united-states-is-borrowing-its-way-to-disguise-recession\/\" title=\"US Borrowing Masks Recession\">real disposable income remained negative<\/a> at -0.1 percent. Household credit\u2062 card debt \u200bhas \u200breached a \u200bnew record, with the average consumer carrying\u2064 a $5,900 debt \u2062on their card, according to the Federal \u2064Reserve Bank of New York.\u200d Last year, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/credit-card-interest-rates-reach-all-time-high\/\" title=\"Credit Card Interest Rates Reach All-Time High\">credit card interest<\/a> alone amounted\u2062 to $105 billion, \u200cand this year&#8217;s figure is expected \u200cto be even higher.<\/p>\n<p>Americans are living \u2064on borrowed time as\u2062 real salaries have\u200b remained in negative territory for the past five years, and inflation continues to eat away at savings.<\/p>\n<p>More\u200d concerning figures can be found in GDP. A strong economy should not experience such a significant decline in investment. Nonresidential business investment \u2064fell by 0.1 percent, including a \u200d3.8 percent slump in equipment investment. \u2062Capital expenditure plans \u2063have\u200d fallen to levels\u2064 not seen since May 2020, according to Morgan Stanley.<\/p>\n<p>The mirage of construction is \u200calso fading, with growth dropping to just 1.6 percent after a one-off double-digit increase in the \u2063previous \u200cquarter. \u200bFurthermore, a significant portion of the\u2064 GDP growth\u200c came from bloated government spending financed by more debt and inventory\u2064 revaluation,\u2064 contributing 0.8 \u200cand 1.4 percentage points to GDP growth, respectively.\u2064 Many of these temporary effects are expected to revert in the fourth quarter.<\/p>\n<p>The \u200dlevel\u2062 of public \u200ddebt is exceedingly concerning. While GDP increased by a mere $414.3 billion between \u200bthe third quarter of\u200b 2022 and the same period in\u200c 2023,\u200c public debt increased by $1.3 trillion, reaching $33.6 trillion from $32.3 trillion, according to \u200cthe Treasury.<\/p>\n<p>The United\u200b States is currently \u200cexperiencing its worst\u200c year of growth, excluding public debt\u200b accumulation, since\u200c the 1930s.<\/p>\n<p>Consumption financed\u2062 by \u2063soaring\u200d credit card debt and economic growth disguised by enormous \u200cgovernment spending\u200b and record public \u200bdebt are not indicators of a strong economy. Instead, they are evidence of \u200ba very\u2062 worrying \u2062trend that may persist for another two quarters\u200b and likely result in\u2063 a much weaker economy over \u2062the next three years.<\/p>\n<div class=\"my-5\"><em>Views expressed in this article\u200b are opinions of the author and\u2064 do \u200cnot necessarily reflect the views of The Epoch\u2063 Times.<\/em><\/div>\n<p> <\/p>\n<h2> How does the ballooning national \u200ddebt and budget deficits impact the \u200deconomy and what measures can be taken \u2064to address this issue?<\/h2>\n<p><span>  To $121\u2064 billion. This \u200dincrease in consumer debt is unsustainable, and it\u200d raises concerns about the long-term stability of the economy.<\/p>\n<p>Another area\u200b of concern is the ballooning national debt and budget deficits.\u200c The US government has \u200bbeen testing the limits\u200c of its debt, with\u2064 spending surpassing revenue\u2062 for \u200bseveral years now. The government shutdown earlier\u200d this year only \u2064highlighted this problem. However, the \u200breal issue lies in the public debt. The US currently \u2062has a public debt \u2064of over \u200d$23 trillion, and it continues to increase at an alarming rate. This level of debt is not sustainable and poses significant\u2062 risks to the economy in the long run.<\/p>\n<p>Furthermore, the government&#8217;s\u200d response to the\u2064 COVID-19\u2064 pandemic has also\u2062 contributed to \u200dthe problem. Massive stimulus\u2062 packages and relief measures have led to an increase in\u200d government spending and further widening\u200d of the budget deficit. While \u200cthese measures were necessary to cushion \u200bthe economy from the impact of the \u200cpandemic, they have also added to the mounting debt burden.<\/p>\n<p>There is no doubt that the\u2063 US economy is currently experiencing \u2062growth and\u200b positive indicators. However, these related stories reveal the underlying weaknesses and vulnerabilities in the \u200beconomy. Real wage growth \u2063remains negative, consumer spending is fueled \u2063by debt, and the national debt\u200c continues \u200bto soar. These are red\u2063 flags that should \u200bnot\u200d be \u200bignored.<\/p>\n<p>It \u200dis crucial for policymakers and \u2062economists\u2062 to address these\u2064 concerns\u2063 and take necessary\u200d steps\u200c to ensure a sustainable and stable economy. This may \u2064include implementing measures to increase <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/under-trump-americans-have-seen-their-best-wage-growth-in-40-years\/\" title=\"Under Trump, Americans Have Seen Their Best Wage Growth In 40 Years\">real wage growth<\/a>, reducing reliance on \u200bdebt for consumer spending, and developing\u200d a long-term\u2064 plan to tackle the national debt. \u2062Ignoring \u2064these issues\u2062 or continuing \u200cwith <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/hud-unlikely-to-get-bidens-budget-recommendations-lawmakers-tell-secretary-fudge\/\" title=\"HUD\" Doubtful\" to Receive Budget Recommendations from Biden, Lawmakers Inform Secretary Fudge\">irresponsible fiscal policies<\/a> will only lead to greater\u200d economic instability in \u2064the future.<\/p>\n<p>In conclusion, while \u200bthe headline economic figures may paint\u2063 a rosy picture,\u2064 a closer look reveals\u2063 concerning weaknesses in the US economy. Real wage growth is negative,\u2064 consumer\u2063 spending is fueled by debt,\u200d and the national debt continues to rise. \u2062These issues need to be addressed to ensure a\u200d sustainable and stable economy in the long run.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US economic figures appear strong, but there are underlying concerns. Q3 saw a 4.9% surge in real GDP growth, surpassing the estimated 4.5%. However, Bloomberg and other analysts predicted up to 5% growth. This analysis highlights the US government&#8217;s performance.<\/p>\n","protected":false},"author":2354,"featured_media":2084656,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2084655","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2084655","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2354"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2084655"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2084655\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2084656"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2084655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2084655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2084655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}