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I think GDP may not be the best representation to how well people are doing, but debt as a % of personal income seems to tell the same story: https://fred.stlou
by autokad 3y ago
I think GDP may not be the best representation to how well people are doing, but debt as a % of personal income seems to tell the same story: https://fred.stlouisfed.org/series/TDSP https://fred.stlouisfed.org/series/TDSP
Its a bit surprising given observational evidence. right now people seem to be spending at any cost and have run dry. now we are to the point every other weekend the bars/pubs are empty because people already spent their money, and the next week its packed because they got paid.
- skybrian 3y agoThat looks to me like personal debt is almost where it was before the pandemic? Slightly lower, but will it last? But that nearly straight line at 10% after 2008 is interesting. It seems like there must have been a big change in behavior?
- tootie 3y agoIt's not really meant to correlate tightly to personal wealth, but it's a proxy for inflation and at least loosely correlated with personal wealth.