(ReclaimingAmerica.net) – In a truly grim warning capturing the essence of the reality brought about by the Biden-Harris administration, IBM Vice Chairman Gary Cohn issued a warning that consumers already struggling with financial pressures might face further challenges due to a predicted economic downturn.
See the video of Cohn’s warning in the tweet below!
In the past year, US voters have expressed significant concerns regarding the economy and inflation, prioritizing these issues as they prepare to vote this November.
Despite President Joe Biden and Vice President Kamala Harris advocating for their administration’s economic strategies, Cohn pointed out that post-COVID-19 expectations of a robust economy might not be met, The Daily Caller writes in a report.
“Consumers are under enormous pressure. So remember, we all came out of COVID with consumers in the best balance sheets we had seen in our lifetimes. We put enormous amount of stimulus into consumer’s balance sheets,” Cohn stated.
“When the economy reopened, consumers did what we really know how to do well in the United States, is not only spend what they have in their account, they use all of the capacity on their credit cards,” he added.
The high-profile executive elaborated that consumers, feeling optimistic, engaged heavily in spending.
“People went out and spent, they took vacations — we saw that. They spent a lot of money on their houses and they went out and got their credit cards fully charged up. They assumed that the economy was going to stay strong, they assumed that job growth was going to stay steady, they assumed that they would continue to be able to maintain that lifestyle,” Cohn explained.
Cohn also commented on the current weaknesses visible in the job market and an increase in credit card delinquencies, indicators of economic softness.
“We’re starting to see softness in the economy, softness in the job market. It is harder and harder to get a job. So we’re starting to see it in delinquencies in credit cards,” Cohn said.
“That’s exactly where we’d start to see the softness in the economy. And people are going to continue to have trouble getting a job that pays more than the last job,” he added.
Recent data from the Bureau of Labor Statistics revealed a significant overestimation in job growth forecasts for April 2023 to March 2024 by approximately 818,000 jobs.
“We just got done with the cycle and we’ve seen this in economic data. We’ve just got done with the cycle where a lot of people were quitting their job. People only quit their job when they believe they can get another job at a higher price point,” Cohn concluded.
IBM Vice Chairman Says Consumer Are 'Under Enormous Pressure,' Warns About Effects Of 'Softness' In Economy@DailyCaller pic.twitter.com/jsoKtx58dF
— Hailey Grace Gomez (@haileyggomez) September 15, 2024
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