Internet's take on recession is viral
For many people, 2023 was a hard year financially, but will 2024 be better or worse? While some internet users say brace yourself for a recession in 2024, others say not to sweat it.
Well, the discussion started after a Reddit user posted on the Finance Newsletter community and claimed that the US National debt has passed $34 trillion for the first time in history. "The US has added over $1 Trillion of debt the last 3 months alone."
The post further read, "The more debt we have, the less your money becomes worth. The U.S. dollar has no inherent value, it's a symbolic representation of value. It's a medium of exchange printed out of thin air, whose value is derived from trusting a government. You must invest in assets to protect your purchasing power."
US National debt has now passed $34 Trillion for the first time in history — The US has added over $1 Trillion of debt the last 3 months alone
byu/TonyLiberty inFluentInFinance
In another community on Reddit, a user wrote, "Will there be recession in 2024" and added a screenshot of X user Peter St Onge's post which read, "Half of all American workers now make under $41,000 per year. That comes to $3,400 per month. Given the median rent is $1,978 and the used car payment is $528, that leaves precisely $894 for everything else -- food, utilities, medical insurance and premiums, clothes, car repairs, sick kids, and that once-a-year dinner out at McDonald's."
Will there be a recession in 2024?
byu/36DRedhead inFluentInFinance
Disagreeing from the analogy, a user wrote, "These numbers are absurd. There's no way someone making $20/hour is paying $1978 in rent and $528 on a car. Lots of apples-to-oranges problems in these numbers. Your averages are drawn from, unlike sources I suspect."
Another user wrote, "See this is bullshit. Median rent of $1975 might be in a city with median wages at $60K or higher. A very nice 1BR apartment in central Texas is $1500 a month. A reasonably nice place is $1200, even in Austin. A used car can be bought for $300 a month or less. Best to just save and buy a used one."
"This is why young Americans cannot afford to live based on their job(s). They can't afford basics when they make $40k /yr which is not easy starting in many professions or hourly jobs. One big unplanned expense and it all goes on the Credit Card," the third user wrote.
A recession is an economic term that refers to a period of decline in the overall economic activity of a country or region. During a recession, various economic indicators such as gross domestic product (GDP), employment rates, investment spending, and consumer confidence typically experience a significant downturn.
Meanwhile, in an exclusive conversation with NDTV, Neelkanth Mishra, who is the Chief Economist for Axis Bank and the part-time chairperson of the Unique Identification Authority of India, said China will grow slowly but won't collapse, while the US is likely to see problems in the next 12-18 months.
Asked about how this could impact India, Mr Mishra said the effects could be felt through four pathways. Services growth, which is already slow, would get slower.