The Real Threat Looming Over the U.S. Economy and Why It Matters

The Late American Republic

The parallel with the Late Roman Republic is not perfect, but it is useful as the ending of that particular story is well-known.

• The U.S. economy faced recessionary fears with high inflation and drying up of pandemic-relief money in 2023.
• Despite concerns, the stock market has been performing well with benchmark indices forecasted to reach new highs.
• However, underlying issues like wealth concentration and stagnant wages pose a significant threat to the economic stability.

You need to spend money to make money

Concentration of stock market wealth among a few, coupled with job loss in the tech sector and wage stagnancy, highlight an unsustainable economic model.

1. 93% of all stock market wealth is held by just 10% of the population, the highest level recorded.
2. 25% of the 2024 market cap is accounted for by the 5 biggest companies, indicating market concentration.
3. Since 1980, wage growth has fallen significantly behind productivity, raising concerns over consumer spending ability.

'Let them eat cake'

High inflation, stagnant wages, and unequal wealth distribution pose a greater risk to the U.S. economy than a stock market crash. Despite perceptions of a strong economy, underlying vulnerabilities threaten economic stability.