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Economy

New Data Reveals a Crash Not Seen Since Great Depression Could Hit in 2024, Highlighting the Need for Government Spending Cuts

President Biden speaks about inflation in the Roosevelt Room of the White House in Washington, D.C., on Dec 13, 2022. (Drew Angerer / Getty Images)

New data indicates that a gigantic economic crisis could be right around the corner, with one important economic indicator flashing that hasn't appeared since the 1930s, during the height of the Great Depression123. If the White House and Congress do not cut inflation-causing government spending soon, the results could be catastrophic123. Here are the key takeaways from the article:

The Economic Indicator

  • One important economic indicator that's currently flashing hasn't appeared since the 1930s, during the height of the Great Depression123.
  • The money supply, which is the amount of cash, checkable deposits, and bank savings accounts, has substantially decreased123.

The Historical Context

  • In 2020, during the height of the coronavirus government lockdowns, President Donald Trump and the Democratic-led Congress spent vast amounts of money to keep the economy, financial system, and stock market afloat1.
  • Trillions of dollars in additional government spending occurred, all of which was financed with debt and money printing1.
  • When President Biden entered the White House in January 2021, it appeared that the economic crisis caused by the pandemic lockdowns would end soon1.
  • However, the money supply has substantially decreased, which means that the government has been taking money out of the economy1.

The Future

  • If the White House and Congress do not cut inflation-causing government spending soon, the results could be catastrophic123.
  • It remains to be seen how the government will address the issue and what impact it will have on the economy123.
President Franklin D. Roosevelt, center, watches his inaugural parade in Washington, D.C., on March 4, 1933. FDR was elected in a landslide in 1932 amid the Great Depression. (AP Photo, File)

Conclusion

The new data indicating that a crash not seen since the Great Depression could hit in 2024 is a significant development that highlights the challenges facing the economy. The decrease in the money supply is a cause for concern, and it remains to be seen how the government will address the issue and what impact it will have on the economy.

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