Funding the Future Scared people do not spend
Apr 16, 2025
Fear drives people to save rather than spend, a trend that could signal an impending recession. The discussion highlights how declining consumer confidence in the U.S. ties into political decisions. Proposed government spending cuts could exacerbate this economic anxiety, hampering growth and exports. The conversation critiques current tariff strategies and emphasizes the need for policy changes to encourage investment.
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Fear Halts Spending
- Economic fear makes people save rather than spend, shrinking the economy.
- Trump has threatened economic security, causing a drop in US consumer confidence.
Historic Low Consumer Confidence
- US consumer confidence is at historic lows, matching the worst periods recorded.
- This drop signals severe economic pessimism with no immediate recovery in sight.
Recession Triggered by Low Spending
- Falling consumer spending triggers a recession due to reduced demand.
- Businesses cut investment and employment as consumer demand dries up, worsening the downturn.