Renowned forecaster warns that US economy is mirroring China’s reliance on debt amid recession

Veteran forecaster Danielle DiMartino Booth warns that the US economy is already in a recession, mirroring China’s growing debt burden. Despite Wall Street’s optimism, Booth points to weakening job market indicators, such as rising layoffs and downward revisions in job growth figures.

Booth’s concerns are supported by recent data showing that layoffs and unemployment have been on the rise, with total discharges reaching 1.7 million in February. She predicts that layoffs could increase from 150,000 to 370,000 by the end of the year, further exacerbating the economic downturn.

Other economists share Booth’s apprehensions, with some predicting a hard landing for the economy by the end of the year, potentially causing the unemployment rate to surge to 5%. The mounting US debt levels only add to the precarious situation, as government debt continues to balloon, resembling China’s state-owned enterprises’ dominance in the economy.

Booth emphasizes the need for the government to reduce spending and allow the private sector to drive economic growth. With the federal debt balance at a record high of $34.5 trillion, experts warn of potential consequences such as higher inflation, increased market volatility, and a lower quality of life for Americans.

As the US economy teeters on the brink of a recession, it is crucial for policymakers to address these challenges and implement measures to stabilize the economy and prevent further deterioration.