The condition of the US economy is not good since the country is already in a trade war with China, it’s facing another big problem, and that’s the government shutdown. The government shutdown has become the longest in the history. However, it is exposing the wrong side of the economy. Because according to a survey more than 80% of the Americans have less than $1000 in their bank account which is means if the recession hit to the country then the situation for these people is going to be dreadful. In 2007 due to the financial crisis, millions of people lost their savings, and the unemployment rate was at its peak, and now because of the government shutdown, the same thing might happen again since the unemployment rate might increase at a faster rate.
According to the survey done by GoBankingRates which states only 21% of total Americans have $10000 on their savings accounts and more than 80% of even less than $1000 which shows that people are financially broke and they are not prepared for the next recession. Majority of the Americans depend upon the paycheck, and since the government shutdown, many of them are not receiving that also. On the other hand, the federal reserves are increasing the interest rates due to which now using a credit card is not benefiting people. However, one thing is right about the current situation, and that’s the unemployment rate remains low which is a good achievement for Trump government, but many economists are predicting that it would be only for short term.
Many big corporations CEOs have already shown their concern about the ongoing situation and if the recession hits then the country is not in good condition to handle it. If we looked into data and the current case then most of the Americans are on the verge of recession and they should get prepared for it.