Seems like every single piece of economic data that comes out right now contains numbers that show we are most definitely headed down the wrong direction, especially as what is turning out to be the most unpredictable presidential election in recent memory, continues to barrel toward us. Americans are suffering financially in multiple areas at once, to the point that those who were upper-middle class are now barely making ends meet.
Just take a trip to the local grocery store and purchase the same items you usually do from week-to-week and you’ll see what I mean. Chances are, the price of your normal goods has gone up by a significant margin. Then there’s the massive increase in the cost of housing to contend with.
Added to that misery is the fact homelessness is at an all-time high, hunger and poverty is exploding, and inflation is skyrocketing with no relief anywhere in sight.
Guess what else? We also just experienced a “historic surge” in corporate bankruptcies during the first six months of 2024 that we haven’t seen since the first half of 2010.
There is a “historic surge” of corporate bankruptcies underway in the U.S., as debt-saddled companies struggle to adjust to the new era of high interest rates.
New figures published by S&P Global Intelligence show that 75 companies filed for bankruptcy in June, the highest number recorded in a single month since early 2020 at the height of the COVID-19 pandemic. That pushed this year’s total number of bankruptcies so far to 346, which is notably higher than comparable levels seen in the past 13 years.
Before this, the highest half-year figure recorded was in 2010, with 437 companies filing for bankruptcy from January through June.
Traveling back in time to the first half of 2010, America was just beginning to emerge from the Great Recession, which was launched by the housing bubble bursting, things were economically painful, much like they are today.
And it doesn’t appear the pain is going to ease up anytime soon. It looks like there are a whole lot more businesses who are going to go extinct in the upcoming months.
A good example is retailer Big Lots, which is now on the verge of disappearing.
Discount retail chain Big Lots said it will close up to 40 stores this year and may declare bankruptcy.
The Columbus, Ohio-based company wrote in a quarterly Securities and Exchange Commission filing it expected further operating losses and has “substantial doubt” it can continue as a functioning business.
Big Lots last month reported a net loss of $205 million in the quarter ending May 4, 2024.
There are a lot of reasons for the economic downturn that is leading to these businesses going belly up. For one, Americans are having to spend increasing amounts of money on their necessities and thus they don’t have a lot of disposable income in order to buy things at stores like Big Lots, despite the costs of good at the store being more than reasonable.
People are being forced to live paycheck to paycheck in growing numbers.
A 2023 survey conducted by Payroll.org highlighted that 78% of Americans live paycheck to paycheck, a 6% increase from the previous year. In other words, more than three-quarters of Americans struggle to save or invest after paying for their monthly expenses.
Similarly, a 2023 Forbes Advisor survey revealed that nearly 70% of respondents either identified as living paycheck to paycheck (40%) or—even more concerning—reported that their income doesn’t even cover their standard expenses (29%).
The government is trying their best to take these numbers and spin a narrative that makes them look positive, but there just isn’t any way to do it. What’s really depressing is how hard it has become for young people to make it these days.
A new survey that was produced by Bank of America has revealed nearly half of all the adult members who are part of Generation z are now having to rely on financial help from their parents and other family members.
A new survey by Bank of America finds that nearly half of adult members of Gen Z are relying on financial help from their parents and family members to get by.
The survey for Bank of America’s Better Money Habits team found that 46% of Gen Z are receiving financial assistance from their parents or other family members, a figure that declines to 30% for Gen Z non-students.
Is it any wonder they are so cranky? Who wouldn’t be angry and frustrated with all of the economic stress they are currently having to shoulder? How many of their parents promised them they would have a good life if they worked hard in school and went to college? Empty promises and broken dreams are all they have managed to inherit.
We better pray and seek to bring this nation back to God if we want to have any sort of hope of repairing the damage.
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