America is currently harboring an overwhelmingly huge debt right now, owing more than four times what it did just two decades ago. oXYGen Financial founder and CEO Ted Jenkin said:
“Like any budget that you have in your household, we have too little income and too many expenses. [However, this could have valuable significance for the consumer. It doesn’t look like interest rates will increase all that much in the short-term since if they did reach 6 percent or over] the net interest on the debt in our fiscal deficit would actually be the No. 1 line expense on our budget.”
But is this really the case? If – as Jenkins would have us believe – the consumer is in a better position now, how come the recorded number of new vehicles purchased was lower last year than in previous years. According to research from Cox Automotive, Edmunds and J.D. Power/LMC Automotive, there was a 1 percent decrease in sales from 2019 as compared to 2018 – the lowest in sales since the 2014 figure of 16.5 million.
President of Americas Operation and Global Vehicle Forecasting Jeff Schuster said:
“Despite a lot of noise and some uncertainty with light-vehicle sales, 2019 has turned out to be a strong year. Much of that uncertainty has dissipated with USMCA nearly across the finish line, the progress with the China trade deal and an economy that is expected to be supportive.”
Trump supporters also believe that this will help business leaders believe that any bolster in consumerism will lead them to put faith in politicians for the upcoming 2020 election.