In America the Housing market can sometimes be the first sign of a larger scale economic disaster on the horizon. When economic collapse slowly happens the people who suffer the most are the average middle class Americans who are basically living from check to check. Based on the what experts are saying there might be tough times ahead for many people in terms of keeping their jobs.

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Is Housing Recession Beginning a Sign Severe Layoffs are Next?

In a trending video several experts explained that the worst part of the Housing Recession is just beginning. Apparently this was caused by a trickle down affect that started due to major mistakes the government made before and during the COVID pandemic. The first mistake came when the government didn’t cut spending, but instead increased spending during the COVID pandemic. The result of that decision led to the price of goods and energy increasing by over 8%.

It’s well known the many Americans are struggling to survive with massive increase in the price of goods due to the recent inflation. To help mitigate this problem the government is allegedly increasing interest rates. The theory is that high interest rates leads to less money circulating and less loans being given out. With less money circulating the interest rates of loans go up, which leads to less big purchases involving loans. As result the housing market has seen a drastic decline in home buying. In addition because the price of goods has increased by 9% consumer spending is way down, which in theory will lead to businesses laying off employees to circumvent the loss of revenue.

It’s scary to think of what 1 year from now will look like the way the economy is going. Government spending is still going up, which increases the longevity of the alleged inflation mitigation tactics that are potentially causing more issues. Who knows maybe the recent trend is misleading in terms of what the future holds.

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