On Friday April 28, the BEA announced the GDP numbers for the first quarter of 2017 and they came in at a whopping .7% which is the lowest quarterly print since the first quarter of 2014. And at the heart of this massive decline in growth is the disparaging news that consumer spending is not only cratering at a rapid pace, but for most Americans they are completely tapped out.
America's credit card debt has reached more than $1 trillion—the highest level since the country's last recession in 2008, according to new data from the Federal Reserve.
Consumers in the U.S. now owe a total of $1.0004 trillion on credit cards. This is 6.2% more than a year ago and up 0.3% from January this year. – Fortune
Yet the increase in consumer debt to fuel the spending that has sustained the economy above water over the past seven years is merely an illusion since the number of individuals now beginning to default on their debts is also rising at ever increasing rates.
The bank card default rate recorded a 3.31% default rate, up nine basis points from February. Auto loan defaults came in at 1.00%, down five basis points from the previous month. The first mortgage default rate came in at 0.75%, up one basis point from February and reaching a one-year high.
The National bank card default rate of 3.31% in March sets a 45-month high. When comparing the bank card default rate among the four census divisions, the bank card default rate in the South is considerably higher than the other three census divisions. Upon further analysis to the South's three census regions, East South Central – comprised of Kentucky, Tennessee, Alabama, and Mississippi – has the highest bank card default rate. – PR Newswire for S&P
All of this makes one wonder who or what exactly is Trump trying to make great again?
The American people have a combination of entities to thank for the demise in their standard of living, and in the erosion of their ability to sustain their lifestyles. And at the forefront of this are both the Fed and former President Barack Obama.
Even if you set aside the new and additional costs incurred to nearly every American because of the Affordable Healthcare Act (Obamacare), the fact that Obama saw fit to nationalize the student loan industry and make borrowing cheap and easy for even those who shouldn’t go to college has helped skyrocket costs in education since the colleges and universities felt unfettered to raise their prices in nearly everything because they knew the government would backstop these inflated charges. And this in turn has led nearly an entire generation of Americans to suspend what normally would have gone into the economy to instead having to give large portions of their income to the government to pay back debt that will be with them for decades.