America’s Debt-Fueled Economy Is Cracking at the Seams

The other alternative, as is suggested in the article, is that they spend spend spend spend. Saving/discipline is not in their vocabulary (knowing that generalisations are dangerous).

I wonder where they learnt that?

It is not lazy to provide evidence.

And nearly one in every ten can’t make their basic credit card payments each month.

Whether they racked up debt on smart purchases or on wasteful spending

AND

A new survey from Credit One Bank reveals that 62% of Gen Z have no emergency savings at all

As a Gen-Z European, it is very rare someone my age (20-25) to have a credit card/loan. Most of us do have (some) savings. I wouldn't say it's fair to excuse the American financial "culture" just because us genzers are still young/with bad spending habits.

I would suggest a discussion of the issues if interested rather than inanities like this.

These people crack me up. This is the richest country in the world with the highest standard of living ever seen on Earth for the common man. I suppose the purpose of articles like this is to needlessly scare "investors" enough to seek "advice" from the Birchwood Gold Group and to become their paid customers.

Yet, we have to suffer articles like this, or the messages of an imminent recession, or read about "struggling" Americans. These authors have a very unclear understanding of the economics and have no basis for any comparison as they have never been farther than Middletown.

I always worder how these struggling Americans would fare in the post-communist Eastern Europe with the standard of living 45% to 65% of our standard of living, or in Rwanda (12.5%) or even in the affluent Germany (92%).

As the magazine Economist out of UK says, "the United States economy has left economies of all advanced countries in the dust" and "the American productivity remains the highest in the world."

I do not want to sound like a broken record as I have said this many times before: Americans would be best advised to relax, smell the roses, fire the therapists and enjoy their good fortune to be born and living in the richest, most democratic and the most free country of the world with the highest standard of living ever seen on Earth.

(Economically, my economic data shows that most products are cheaper than 50 years ago in 1975 as well as than 5 years ago in 2020 adjusted for inflation. The only exception is housing that is a special case. The prices are rising because of high demand as Americans have been buying homes left and right frequently overbidding the asking prices as was the case during the recent epidemic. The other reason is that an average house in 1975 was 1,700 sq. ft. while it is 2,500 sq. ft. today.

To understand that, one needs a modicum of understanding of economics and the mathematics of inflation. In the meantime, the household income have been rising slightly above the rate of inflation thereby slowly increasing the standard of living.

Finally, the low positive inflation is a good thing as it protects us against the dreaded deflation.)

That is how it is. Those who cling to the belief that inflation is very high, the prices are sky high or a recession is just around the corner, or that president Trump wants to destroy the national economy with tariffs and the American consumers will pay for it as the tariffs are added straight to the price should bone up on economics in the first place.

Fire away!

So whose culture would that be? You cannot just say "the" culture. {But I think that we do actually know, no response necessary}

Look at the example provide by the Euro Gen Z contributor above - quite a sensible culture by my measure. They save money, many don't even have a credit card.

It is rare???? Thanks for the laugh, majority of Gen Z have no savings, and are in debt. They are all blaming it on everyone else but themselves. Here is a break down, stop wasting 4years in university for social science, the degree that will not take you anywhere, take something that is on demand, and you will have a job right after and be able to pay off debt. For example try trades, welding, plumbing and many more, you will be out of school debt free, and will be paid the whole time you are studying and having work and hours experience. These days, unless you are a GENIUS, you do not need to go into finance, IT computers, and so on, there are way too many people in that field. Healthcare and trades, are in demand and will be for a very long time.

Try reading what he said before you spout off. European gen zers do not have a lot of debt. American Gen Zers do. Simple for most of us to understand, but you are aparently having difficulty.

Kind of a misleading article. Gen Z has no savings because they haven't been in the workforce long enough to build one-generally speaking. I bet this is a chat gpt article some lazy ass wrote.

No. It's just not cricket to shoot fish in a bucket.

I am not qualified to discuss pseudo economics.

How is the spending habits of this generation any different from any other generation? What's the point of saving in a high inflation economy??

Wait till the next US CREDIT downgrade .... watch real estate.

How can anyone save when there's little to nothing left to save ? The culture of spending has changed from what it was half a century ago !!!

they've kicked the can down the road now so its buy buy till the next big event dont be thrown of by these stupid articles buy any intraday or weekly dip