Currently, Americans are experiencing levels of inflation that have not been seen in decades, and that look like numbers from other countries and never from the United States. Everyday items such as food, hygiene, and beauty products have increased strongly in the last two years, as a result of Covid-19 and the events in Europe.
Don’t feel strange or lonely if you have these thoughts: other people are going through the same kind of anxiety. This is where a recent viral TikTok video comes in, which captured widespread attention and shed light on the realities of recession anxiety.
Is This a Sign of Economic Recession in America?
The video in question was filmed by Liberty Ann Flynn (@libertysshopping), who is standing at Walmart in front of what she believes is a sign of the economic downturn. “I know for sure we are in a recession now,”, can be seen embodied in the video. The camera pans over to show what is leaving her astonished: a shelf full of cookies, presented in packs of two, which suggests that even small luxuries have become unapproachable to many people.
Although inflation in the United States seemed to have peaked in June 2022 and has been steadily declining since then, it is still three times higher than the Federal Reserve’s 2% target, which justifiably keeps people worried about a possible recession.
However, according to a Forbes article citing recent research conducted by academics at the University of Missouri and Indiana University, although the economy is likely to slow down in 2023, it is unlikely to be heading towards a recession. For now, the fears are just that, fears, sensations an perceptions, according to the experts.
“Wait I remember getting the two packs when I was a kid during the 2008 recession,” one TikTok user commented. Another TikToker stated that he saw a gallon of 2% milk for $7 in a gas station, a price quite high for that daily-basis product.
What Would Indicate That the United States Is in a Recession?
There are several signs that indicate a potential economic recession in the US. These include a decline in Gross Domestic Product (GDP) over two consecutive quarters, a rise in unemployment, a decrease in consumer spending, a decline in stock prices, and a tightening of credit by lending institutions.
As a matter of fact, these indicators could show that the economy is struggling and that a recession may be imminent. However, if we see that, we must not panic: the economy is complex and not all of these signs need to be present for a recession to occur, or the presence of one or more at the same time doesn’t mean that we have to run for our lives.