The economy is taking a turn for the worst, and it’s clear that corporate layoffs are on the rise. This time, the victim is the food industry giant McDonald’s, which is set to lay off a sizable number of employees. The layoffs are just one sign that things aren’t going well for the US economy. Reality is setting in that the era of easy money has ended, and we’re facing a credit crunch.
McDonald’s is temporarily closing its U.S. offices this week as it prepares to inform corporate employees about layoffs https://t.co/dF6l4RNzNp
— The Wall Street Journal (@WSJ) April 2, 2023
Media and entertainment enterprises are also continuing to suffer. ABC News, Spotify, Salem Media, and other companies have all made staff cuts. Interest rates are high, with multiple banks failing, and a financial crisis could be on the horizon.
Experts warn that there could be another financial shoe to drop, exposing unforeseen risks in the financial system. Treasury Secretary Janet Yellen blamed former President Donald Trump for the failure of the Federal Government to monitor these banks. However, as the WSJ Editorial Board notes, the Fed was preoccupied with other matters at the time, such as climate change, while they should have been focusing on inflation.
The Federal Reserve and the Treasury are responsible for inflating one of the largest asset bubbles in US history, and it is now clear that the economy is taking a hard hit. The layoffs started in the tech sector and are spreading to businesses like GM and McDonald’s, and It’s only a matter of time before the crash landing.
It’s time to sober up; we cannot continue to borrow trillions of dollars to fund our reckless spending. It’s time to tighten credit conditions as the economy deteriorates, and we inch closer to a recession.