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After inflation and price hikes, the decline in collective wealth in the United States threatens the American economy

2022-05-23T09:47:26.949Z


Washington, SANA- With the rise in fuel prices and the inflation rate in the United States to unprecedented levels,


Washington-Sana

With the rise in fuel prices and the inflation rate in the United States to unprecedented levels, the American economy is facing a new threat, represented, according to financial experts, by a steady decline in the collective wealth of Americans, which has reached $5 trillion since the beginning of this year, amid expectations that it will increase to $9 trillion by the end of this year.

The American Bloomberg website revealed that the United States, which is considered one of the richest countries in the world, is facing absolutely unpleasant developments, as it is heading towards poverty with a decrease in the collective wealth of individuals in it due to the influence of several factors, most notably inflation and high prices.

And the website indicated that despite the rapid growth in the net wealth of the total of Americans, which recorded 38.5 trillion dollars since the beginning of 2020 and the end of last year, even amid the outbreak of the Corona crisis, and the rise in the country’s net wealth to a record level of 142 trillion dollars, according to estimates by the Federal Reserve, this total fell. $5 trillion this year.

The website pointed out that the high rate of inflation and interest began to cause clear disturbances in the housing market, where the wealth of the middle and working classes is concentrated, and the problem of declining collective wealth no longer affects the rich only, pointing out that US stocks are witnessing a decline amid fears of recession and increasing levels of inflation.

Since the beginning of the year, the S&P 500 has fallen by 18 percent, the Nasdaq 100 has lost 27 percent, and the Bloomberg cryptocurrency index has fallen by 48 percent.

Senior economists at JPMorgan, including Michael Firoli, see the losses in the collective net wealth of Americans as a shock that will slow the growth of the US economy next year.

And the Bloomberg website indicated that attempts to curb inflation in the United States, which recorded its highest rate in decades, require, according to the Federal Reserve, to reduce spending among American citizens, even if this means an economic decline.

The site pointed out that Federal Reserve Chairman Jerome Powell and his colleagues have repeatedly announced that they are actively seeking such a slowdown, so it is unlikely that US policymakers will take any measures to address the significant decline in the collective net wealth of Americans this year.

The annual US inflation rate in June and July reached 5.4 percent, the highest rate since August 2008, when the administration of President Joe Biden failed to confront this crisis, which was exacerbated by the sanctions imposed by Washington and its Western allies on Russia under the pretext of its own operation in Ukraine and the consequent consequences It has dire consequences of rising fuel and food prices in the world.

And the US Senator from the Republican Party, Rand Paul, confirmed this week that most Americans want their administration to secure and treat the economy in the country instead of getting involved in the war in favor of the Ukrainian regime against Russia.

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Source: sena

All news articles on 2022-05-23

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