El-Erian: Low-income Americans are near recession, putting rest of economy at risk | Metals Mine

  • El-Erian: Low-income Americans are near recession, putting rest of economy at risk

    From finance.yahoo.com

    Mohamed El-Erian, chief economic adviser at Allianz, is warning that lower-income Americans are under "significant pressure" and that a halt to their spending would weigh on the economy as a whole. "This is not an isolated concern if the lower household incomes stop spending, not because they don't want to spend, but they're not able to spend. That will contaminate upwards for the economy as a whole," El-Erian said in an interview during Yahoo Finance's annual Invest conference. The economy has become increasingly bifurcated as higher-income consumers continue to spend while lower-income households have been ... (full story)

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Vancarbon
Nov 17, 2025 2:35am
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Affordable care in the USA is a business , run on a business model . A truly altruistic country uses a similar model to the UK , the NHS .

“ established in the UK on July 5, 1948, to provide healthcare based on need, not ability to pay, funded by taxation. “

Private health care can run parallel to this for those that can afford it and require it . I’m not saying the NHS is a shining light as an example of a perfect model system however compare the American system and see which you’d prefer if you were to ever require its services .
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ffghost
Nov 16, 2025 7:22pm
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I read the article, but didn't see where "lower income" starts.

Isn't something like 10-15% of spending from lower income (lowest 1/3)? I mean, it would be an impact of that went to zero, but let's face it, spending will still occur....just might not be 100% of what it once was. Obviously, the folks from the article are much smarter than I am, BUT, it seems a bit extreme to be that concerned, doesn't it?
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Czyker26
Nov 16, 2025 10:51pm
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Residents of the 30 states that use the federally run HealthCare.gov will see an average 26 percent premium rise in 2026 for an average ACA plan, according to the analysis. Residents of the 20 states with their own exchanges will see an average 17 percent hike. These numbers include everyone on the exchanges.

However, that figure doesn’t reflect what a person who gets a subsidy might pay.

“There is what the insurance company charges but since nine out of 10 [ACA customers] get a subsidy they don’t pay that,” Cynthia Cox, vice president and director of KFF’s ACA program, said in an interview. “They pay a certain amount of their income.”

Without the enhanced subsidies, ACA customers will pay a lot more out of pocket.
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Czyker26
Nov 16, 2025 11:18pm
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So much for Affordable Care ............................ Lower Income will be decimated by Obamacare INC. The lying, scoundrel thieves !!!!!
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Trader#DA0B
Nov 17, 2025 11:31am
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Quoting Czyker26
Without the enhanced subsidies, ACA customers will pay a lot more out of pocket.
That's how it was designed to function. It was never about affordable healthcare for people, it was about subsidizing insurance companies to make them larger monopolies. At least Trump is trying to break the healthcare insurance monopolies apart. We'll see what happens.
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Trader#A306
Nov 17, 2025 1:18am
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Low-income Americans are losing because bought the propaganda of the American Dream and now have to pay for the illusion.
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