America’s GDP is basically rich people buying, poor people using credit, and AI spending; the average Joe can’t even afford Dollar General.

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The recent collapse of Dollar General shares is a glaring indicator of this economic facade. The nation’s largest discount retailer saw its stock crash 23.5%, plunging to levels not seen since 2018, following a disastrous second-quarter earnings report. Wall Street’s expectations were missed, and the retailer slashed its full-year outlook, citing the grim reality that its core customers are “financially constrained.” The ripple effect was immediate, with competitor Dollar Tree also taking a hit, dropping over 9% in early trading.

Source: Zerohedge

What are we actually producing in this so-called strong economy? Certainly not housing, as residential investment was the weakest sector in Q2 GDP, and revisions only made it worse. The American economy seems to be a hollow shell, propped up by the spending habits of the wealthy and the desperation of the poor.

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And while this financial turmoil unfolds, the Biden administration’s PR machine was quick to tout a surge in personal consumption—a move that feels increasingly detached from the economic pain felt by everyday Americans. According to the Chicago Fed’s NFCI, credit conditions are the loosest since January 2022, yet it’s clear that access to credit isn’t solving the underlying issue of financial strain for the average consumer.

The collapse of Dollar General’s shares serves as a stark reminder that America’s economic foundation is anything but stable. When even the most budget-conscious consumers are forced to tighten their belts, it’s a clear sign that the system is failing. The stock market may react to earnings misses, but the real crisis lies in the growing disconnect between GDP figures and the lived reality of millions of Americans struggling to make ends meet.

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Sources:

www.zerohedge.com/markets/dollar-general-shares-crash-after-earnings-miss-outlook-slashed-financially-constrained

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