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Germany and India are heading towards a recession. China's growth rate is slowing. If there is a global recession, I don't think U.S. can escape it. A lot of U.
by 1helloworld1 7y ago
Germany and India are heading towards a recession. China's growth rate is slowing. If there is a global recession, I don't think U.S. can escape it. A lot of U.S. companies sell their products globally. Here is share of foreign revenue of some U.S. companies - Ford - 51%, Bank of America - 20%, Boeing - 41%, Amazon - 45%, McDonald's - 66%. Ford employs 85000 people in U.S. If Ford's global sales declines by 20%, they will close some U.S. plants and lay off employees. Even if just 20% of the companies in S&P 500 start laying off people, that will soon have a cascading effect. People who lost their jobs will stop spending. Even the people who have jobs will be afraid to spend on anything major - new houses, new cars, etc.