Peter Thiel, a tech billionaire, thinks the US is on the verge of a recession. He says the economy would be in a deep dive right now if the government wasn’t spending like crazy.
Government Spending: A Band-Aid on a Bigger Problem?
Thiel says the government is propping up the economy by spending a ton of money, but this is unsustainable. He points to the massive budget deficit, which is way higher than expected. “We’re supposed to increase spending during a recession, not when things are good,” he said. “We’re just adding more debt to a problem that’s already out of control.”
The Numbers Don’t Lie
The US government has already spent $1.9 trillion more than it’s taken in during the first 11 months of this year. That’s a huge jump from last year. And the national debt? It’s now a record-breaking $35.273 trillion.
What’s Next?
Thiel is worried that the government’s spending spree is just delaying the inevitable. He says the US has too much debt and not enough real economic growth. So, what does this mean for the average person? Well, it’s hard to say for sure. But if Thiel is right, we could be in for some rough times ahead.
