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Could that also be because people are living paycheck to paycheck and not buying things like houses and cars anymore? Relatedly: a decrease in debt is exactly
by omginternets 5y ago
Could that also be because people are living paycheck to paycheck and not buying things like houses and cars anymore?
Relatedly: a decrease in debt is exactly what I would expect from an Uberized economy where nobody owns anything anymore. I’m not sure this is such a good measure of economic health.
Stated differently: a small amount of debt is an indication that people are investing in things. That’s usually a good sign.
- antiterra 5y ago> Could that also be because people are living paycheck to paycheck and not buying things like houses and cars anymore? No. New car sales are currently bottlenecked by supply chain issues, not demand. Housing sale demand is dropping, but still very solid compared to inventory. At some point, this supply restriction becomes inflationary. If you can buy a new car and resell it a month later for more than you paid, the MSRP is below demand. Since consumers react poorly to price increases, this is also coupled by reduction in quality or service.