by bitkogan
The savings of Americans, which swelled thanks to the government’s pandemic stimulus, have not only shrunk, but have even fallen below the level of the longer-term trend stretching back to before the pandemic.
The key driver behind this is inflation, which is making expenses grow faster than incomes. The gap between personal income and personal spending is at its lowest since 2010, and the result is clear: Americans are being compelled to tap into their savings.
Absent another round of ‘helicopter money’ from the authorities, it’s doubtful that consumers will continue to fuel economic growth. Additionally, the average American’s stock buying budget is also getting leaner.
Monetary inflation is driving wealth inequality.
As Dr. Karl-Friedrich Israel explains, wealth inequality is driving political instability and devastating the social well-being of future generations.
Full lecture available: t.co/90SM2u7ZZ0 pic.twitter.com/fXf9jRj8j1
— Mises Institute (@mises) August 2, 2023
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