The Bottom Line:
- The US economy is in a state of recession, characterized by declining economic activity, decreased business investments, increased unemployment, and increased consumer spending.
- Unemployment is widespread, leading to massive layoffs across almost all sectors and industries at a rapid pace, with the loss of over 1.5 million full-time jobs.
- The housing market is facing a significant surplus of unsold homes and vacant apartment units, with developers struggling to manage the oversupply and delayed project completions.
- The public’s perception of their financial well-being has sharply declined, with people aware of reduced paychecks and potential job losses within their households.
- The economic downturn is expected to intensify in the coming months, leading to widespread unrest and chaos as the pressure and instability in the US economy reach a breaking point.
Recession Grips the US Economy
Rapid Job Losses Across Industries
The United States is currently experiencing a recession, with widespread job losses occurring across all industries at an alarming rate. Americans are working as much as they can, taking on multiple jobs and gigs, but it is not enough to make ends meet. The loss of 1.5 million full-time positions has left many people struggling with temporary or part-time work that does not provide the stability and income they once had. This tragic shift highlights a growing economic disparity where full-time, secure employment is declining, impacting individual livelihoods and having broader implications for economic stability and social well-being.
Increased Demand for Food Banks and Assistance
As the economic situation deteriorates, there is a growing sense of unrest among the populace. It is no longer possible to gaslight the American people, as they are acutely aware that something is wrong. Danielle D. Martino Booth shares a poignant example of the head of a food bank in Tampa, Florida, who has seen a doubling in the number of families seeking assistance, from 20,000 to 40,000 per month. From dawn to dusk, people line up to receive food to feed their families, highlighting the severity of the crisis.
Housing Market Struggles and Oversupply
The housing market has been hit particularly hard by the recession. Builders are facing an unprecedented situation, with a significant surplus of completed homes built without specific buyers in mind. The inventory of unsold homes is the highest since 2010, and when combined with homes that were started but remain unsold, the issue is highly comparable to the crisis of 2008. The apartment market is also experiencing strain, with only 47% of the units delivered in the first quarter of 2023 being occupied, leaving many new units vacant. Developers are delaying the completion of their projects, hoping for relief, but it is nowhere in sight for the near future.
Widespread Unemployment Sweeps Across Sectors
Rapid Job Losses Across Industries
The United States is currently experiencing a recession, with widespread job losses occurring across all industries at an alarming rate. Americans are working as much as they can, taking on multiple jobs and gigs, but it is not enough to make ends meet. The loss of 1.5 million full-time positions has left many people struggling with temporary or part-time work that does not provide the stability and income they once had. This tragic shift highlights a growing economic disparity where full-time, secure employment is declining, impacting individual livelihoods and having broader implications for economic stability and social well-being.
Growing Demand for Food Banks and Assistance
As the economic situation deteriorates, there is a growing sense of unrest among the populace. It is no longer possible to gaslight the American people, as they are acutely aware that something is wrong. Danielle D. Martino Booth shares a poignant example of the head of a food bank in Tampa, Florida, who has seen a doubling in the number of families seeking assistance, from 20,000 to 40,000 per month. From dawn to dusk, people line up to receive food to feed their families, highlighting the severity of the crisis.
Housing Market Woes and Oversupply
The housing market has been hit particularly hard by the recession. Builders are facing an unprecedented situation, with a significant surplus of completed homes built without specific buyers in mind. The inventory of unsold homes is the highest since 2010, and when combined with homes that were started but remain unsold, the issue is highly comparable to the crisis of 2008. The apartment market is also experiencing strain, with only 47% of the units delivered in the first quarter of 2023 being occupied, leaving many new units vacant. Developers are delaying the completion of their projects, hoping for relief, but it is nowhere in sight for the near future.
Housing Market Faces Oversupply and Delayed Completions
Builders Grapple with Excess Inventory and Delayed Completions
The housing market is facing significant challenges as the recession takes its toll. Builders are grappling with an unprecedented situation, with a surplus of completed homes built without specific buyers in mind. The inventory of unsold homes has reached its highest level since 2010, and when combined with homes that were started but remain unsold, the issue is reminiscent of the 2008 housing crisis. Developers are struggling to find ways to control the oversupply situation, with some attempting to delay the completion of projects in hopes of mitigating the pain of vacant properties.
Apartment Market Struggles with Vacancy Rates
The apartment market is also experiencing significant strain, with only 47% of the units delivered in the first quarter of 2023 being occupied. This means that 53% of newly constructed apartments remain vacant, presenting a significant problem for developers and property owners. The pipeline for new apartment units remains robust, with half a million units scheduled for completion this year and another half a million due in 2025. Developers who had hoped for a recovery by 2024 are now faced with the challenge of managing this excess supply.
Urgent Need for Supply Control Measures
As the housing market continues to grapple with oversupply, there is an urgent need for those in power to find ways to control the situation. With a third of all homes in the inventory pool being new, along with the glut of apartments, builders are in a state of panic, trying to figure out how to pull back on some of this supply. The situation is further compounded by the influx of homes being dumped by Airbnb investors and midsize investors who own between 1,000 and 10,000 properties. Buyer traffic has also taken a significant hit, with recent data showing levels as bad as those seen in 2006 and 2007, just before the previous housing crisis.
Declining Perception of Financial Well-being
Sharp Decline in Public Perception of Financial Well-Being
Data from the University of Michigan highlights a significant drop in the public’s perception of their financial well-being. Since 1968, the survey has recorded the sharpest decline in how people view their income stability, indicating that people are acutely aware of reduced paychecks and potential job losses within their households. This heightened awareness makes it difficult for authorities or the media to downplay the reality of the economic situation, as the public is no longer easily deceived or reassured by optimistic narratives.
Unrest and Anger Among Struggling Households
As the economic crisis deepens, there is a growing sense of unrest and anger among struggling households. Many individuals and families are bitter about the fact that they have had to put off starting families because they cannot afford them, and housing has become increasingly unaffordable. The metaphor of a blazing hot summer across the country is not lost on Danielle D. Martino Booth, who sees it as a reflection of the simmering discontent and frustration felt by many Americans.
Quiet Bread Lines and Invisible Struggles
While the United States has food stamp programs and other forms of assistance, the struggles of those in need often remain invisible to the general public. People using these programs can be seen in stores alongside other shoppers, but their hardships are not always apparent. Danielle refers to these as “quiet bread lines,” highlighting the fact that many Americans are silently suffering and relying on assistance to make ends meet, even though their struggles may not be immediately visible to others.
Intensifying Economic Downturn Leads to Unrest and Chaos
Growing Sense of Unrest and Frustration Among Americans
As the economic downturn intensifies, there is a palpable sense of unrest and frustration among the American populace. It is no longer possible to gaslight or mislead the public about the severity of the situation, as they are acutely aware of the hardships they face. Danielle D. Martino Booth shares a poignant example of a food bank in Tampa, Florida, where the number of families seeking assistance has doubled from 20,000 to 40,000 per month. People line up from dawn to dusk to receive food to feed their families, highlighting the desperation and struggle that many Americans are experiencing.
Delayed Dreams and Unaffordable Housing Fuel Anger
The economic crisis has forced many individuals and families to put their dreams on hold, particularly when it comes to starting families and purchasing homes. The unaffordability of housing has become a major source of anger and bitterness among Americans, as they find themselves unable to achieve the stability and security they once hoped for. The metaphor of a blazing hot summer across the country serves as a reflection of the simmering discontent and frustration felt by many who are struggling to make ends meet.
Silent Suffering and Invisible Assistance
While the United States has various assistance programs, such as food stamps, the struggles of those in need often remain hidden from public view. People relying on these programs can be seen in stores alongside other shoppers, but their hardships are not always apparent. Danielle refers to these as “quiet bread lines,” emphasizing the fact that many Americans are silently suffering and relying on assistance to survive, even though their struggles may not be immediately visible to others. This silent suffering adds to the overall sense of unrest and frustration, as people grapple with the reality of their economic situation.
