The US economy is facing a major warning sign: Americans are struggling to spend, with most middle-class and lower-income households unable to afford luxuries due to high costs of living. George Seay, founder of Annandale Capital, warned that the majority of consumer spending goes to the top 10% of earners who earn over $250,000 per year, creating an unsustainable economic situation.
Seay pointed out that the average age for first-time homebuyers has increased from 26-27 years old to 34 years old, largely due to rising interest rates and housing prices. He believes this trend is unhealthy and highlights a broader issue of inequality in the US economy.
Despite concerns, Seay remains optimistic about the country’s overall strength, likening it to a house in a bad neighborhood – still standing but in need of repair. However, he cautions that there are many reasons to worry about the current state of the economy, including high levels of debt and uncertain global trends.
Source: https://www.thestreet.com/video/expert-sounds-alarm-on-u-s-consumer-spending