This is nothing short of a crisis for young Americans. The staggering increase in debt levels among Gen Z, coupled with stagnant earnings, paints a grim picture of financial stability for the next generation. It’s alarming to see that despite earning less, they’re saddled with significantly more debt than Millennials were a decade ago. With US real retail sales flatlining and leading indicators pointing towards economic slowdown, the situation becomes even more dire. And the fact that over half of Buy Now, Pay Later users admit to overspending underscores the severity of the issue. Urgent action is needed to address this looming financial catastrophe and ensure a brighter future for young Americans.
Young Americans have more debt than ever:
Gen Z consumers, aged 22 to 24, have 44% MORE mortgage debt than Millennials in 2013.
They also have 26% more credit card debt and 14% more in auto loans than Millennials in 2013, even after adjusting for inflation.
The average credit… pic.twitter.com/ccDI0y8B1f
— The Kobeissi Letter (@KobeissiLetter) May 11, 2024
🇺🇸 US real retail sales 0.77% YoY.
Retail sales flatline before a #recession! pic.twitter.com/djJ8QnMsSe
— Alex Joosten (@joosteninvestor) May 11, 2024
The ratio of the Conference Board Leading Employment Index and nonfarm payrolls has historically been a great Business Cycle indicator.
In April, the ratio declined further, continuing to signal a labor picture that is slowing more than the headline coincident data like nonfarm… pic.twitter.com/VZLf7syJ9r
— Eric Basmajian (@EPBResearch) May 11, 2024
54% of Americans who use Buy Now, Pay Later say they are spending more than they can afford, while 24% admit that their spending is out of control pic.twitter.com/4CRdiepkzJ
— Win Smart, CFA (@WinfieldSmart) May 9, 2024
Here is a detailed chart that shows how the 2008 Financial Crisis unfolded: pic.twitter.com/cEScJkRtbX
— Game of Trades (@GameofTrades_) May 11, 2024