Is the American Consumer Tapped Out?

The video explores the significant role of consumer spending in the American economy, accounting for nearly 70% of GDP. It discusses the impact of COVID-19, which initially led to increased savings but later resulted in 'revenge spending' as restrictions eased. The video highlights the challenges posed by inflation, which peaked at 9.1% in 2022, and the growing consumer debt, including the concept of 'phantom debt' from buy now, pay later services. It also addresses the issue of stagnant wage growth and the economic pressures faced by various income groups. Despite these challenges, there is hope for recovery as the Federal Reserve cuts interest rates, aiming for a soft economic landing.

What percentage of the American GDP is made up by consumer spending?

• 80%

• 50%

• 60%

• 70%

What was a significant economic story in recent years that affected consumer spending?

• Economic boom

• Recession

• Inflation

• Deflation

What is the term used to describe the hidden debt associated with buy now, pay later services?

• Shadow debt

• Phantom debt

• Invisible debt

• Dark debt

What financial tool has become common for online purchases, allowing payments in installments?

• Buy now, pay later

• Personal loans

• Mortgages

• Credit cards

What has been a major challenge for lower-income consumers according to a JP Morgan study?

• High savings rates

• Paying bills

• Investing in stocks

• Buying luxury goods

What economic measure did the Federal Reserve take in September to help regular people?

• Cut interest rates

• Increased taxes

• Introduced new taxes

• Raised interest rates

What is a potential positive outcome experts hope for with the Federal Reserve's actions?

• Economic recession

• Hard landing

• Economic boom

• Soft landing