In the intricate web of global commerce, microchips are the unsung heroes, quietly powering everything from cars and washing machines to cell phones and airplanes. Yet, when a titan in the chip industry like Microchip reports a staggering 40% decline in revenue year over year, it sends shockwaves rippling through the economy.
Such a dramatic downturn in chip sales is more than just a blip on the radar; it’s a chilling indicator of the state of the economy for discretionary goods. As the backbone of countless industries, microchips offer a window into the broader economic landscape, and right now, the view is anything but rosy.
Indeed, the numbers tell a sobering tale. According to CNBC, nearly 40 million families, comprising 29% of the population, are grappling with the challenge of covering basic needs while holding down jobs. And that’s not even counting the 37.9 million Americans living in poverty, as reported by the U.S. Census Bureau.
The storm clouds gathering on the economic horizon paint a bleak picture:
- A staggering 43% of small businesses found themselves unable to pay their rent in full and on time in April, underscoring the harsh realities facing Main Street amid the economic turmoil.
- The retail sector, once a pillar of the American economy, continues to hemorrhage as evidenced by the closure of 2600 retail stores in 2024 alone, leaving behind empty storefronts and shattered dreams.
- The ranks of the “ALICE” category—those who are asset-limited, income-constrained, yet employed—swell to nearly 100 million Americans, highlighting the precarious balance many working families are forced to maintain.
- Adding to the grim statistics, an additional 38 million Americans languish in poverty, trapped in a cycle of deprivation and hardship.
As we confront the harsh realities of an economy in turmoil, it’s clear that mere optimism won’t suffice.
Sources:
Microchip makes chips for cars, washing machines, cell phones, internet routers, airplanes, and the defense-industrial base.
If their revenue is declining -40 % year over year, that means that the state of the economy for discretionary goods is absolutely crashing 📉 t.co/M4t9fwSgQB
— Golden Coast (Cassandra) (@GregCrennan) May 6, 2024
Nearly 40 million families, or 29% of the population, have jobs but struggle to cover basic needs, per CNBC.
That figure doesn’t include the 37.9 million Americans who live in poverty, which accounts for another 11.5% of the total population, per the U.S. Census Bureau.
— unusual_whales (@unusual_whales) May 6, 2024
Storm clouds gathering for the American economy:
1. 43% of small businesses couldn’t pay their rent in full and on time in April.
2. 2600 retail stores closed in 2024
3. Nearly 100 million Americans in “ALICE:” category (Asset limited, income constrained, employed).
4. Another…— Robert F. Kennedy Jr (@RobertKennedyJr) May 6, 2024