Executive Summary:
It’s an economic curiosity of our times: The US economy is undeniably strong, in fact remarkably resilient in the face of recent headwinds. Yet it’s in the midst of an affordability crisis that has hit Gen Zers and other lower-income folks especially hard. Even so, consumer spending is brisk, and Dr Ed expects it to remain so. What’s going on? The paradoxes can be explained largely by one distortive phenomenon: The largest generation in history is retiring and spending substantial nest eggs accumulated over decades of work. … Also: Dr Ed reviews “Goodbye June” (+). … Check out the accompanying chart collection.
US Economy I: Still Roaring Despite Affordability Crisis
Since the start of the Roaring 2020s, the US economy has demonstrated its resilience repeatedly. It was hit by a two-month recession during the pandemic lockdown in early 2020. It recovered quickly and continued to grow through 2025.
After the lockdown was lifted, social distancing restrictions constrained consumer spending on services, whereas demand for goods soared.
That caused supply-chain disruptions, which led to a spike in consumer price inflation, especially for durable goods, in 2021 and 2022.
The Fed responded by...
Big Tech earnings week is here! Stay ahead with MacroMicro’s Economic Calendar — track CPI, GDP, and key earnings like Apple & Google all in one place. Check it out »
