The Current State of the US Economy
The term “selective recession” describes a situation where certain groups in the economy are experiencing hardships while others continue to thrive. According to recent insights from JPMorgan, lower-income consumers are particularly finding it difficult to manage the rising costs of living.
Impact on Lower-Income Consumers
Lower-income households are facing unprecedented challenges as inflation outpaces wage growth. The findings highlight the widening gap in economic stability, indicating that many individuals and families cannot afford basic necessities.
The Role of Inflation
Inflation has been a critical driver in exacerbating the economic strain on these lower-income demographics. As prices for essential goods and services rise, many consumers find their purchasing power severely diminished.
Responses from Financial Institutions
In light of these challenges, financial institutions like JPMorgan are closely monitoring consumer behavior and spending patterns. Their analyses suggest a growing divergence in economic experiences that could have long-term implications for policy-making and economic recovery.
Future Outlook
As the economy shifts toward this selective recession framework, it raises questions about how to support those most impacted. With lower-income consumers struggling to cover their basic costs, it’s crucial for policymakers to address these disparities.
Further Reading and Resources
For a more in-depth analysis, you can access the full report by JPMorgan here.
