Borrowing to spend in America and the credit accelerator

The US economy’s upswing over the last six years has been predicated on credit like the cycle before it because wage growth has been lacklustre. I want to describe where credit activity has created a lift in consumer spending and in capital investment that would otherwise have been absent. Afterwards, I want to describe where I think the weaknesses in this economic model lie and why I am inclined to believe we are closer to the end of cycle than near a mid-cycle slowdown a la 1994.

The US economy’s upswing over the last six years has been predicated on credit like the cycle before it because wage growth has been lacklustre. I want to describe where credit activity has created a lift in consumer spending and in capital investment that would otherwise have been absent. Afterwards, I want to describe where I think the weaknesses in this economic model lie and why I am inclined to believe we are closer to the end of cycle than near a mid-cycle slowdown a la 1994.
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