It seems that “Oracle of Wall Street”, which was launched in 2008, appears to be a warning of Gen Z and Millennials next year

In a recent episode of “Barron’s Roundtable”, it was broadcast by Fox’s workWhitney explained that although Gen Z and Millennials have paid consumers’ spending and is often the backbone of the postpartum economy, their financial foundations are increasingly fragile. Whitney described General Z and Millennials-she said that she called them the “Avocado Aiced consumer”-as it is uniquely exposed due to the convergence of economic factors that threaten flexibility: high costs, stagnant wages, insecure housing, and an added safety network of Bandaric benefits.

She added that she was “not surprised” with the growth of disappointing jobs in August, as she attributed to a hidden economy and the weakest of the surface, with the consumer of avocado toast at the heart of things.

Looking closely in consumption

Whitney refers to the spending of the remaining and even negative consumers in the main categories that make up about 20 % of the workforce, including hotel, hospitality and retail sectors, as a basic indicator. It also suggests that the current immigration policies pressure these themselves by effectively removing a million non -workers from the workforce. It indicates that this mixture indicates a more fragile economic environment than its awareness on a large scale, and expects the unemployment rate to ascend to “four high”. By the end of this year to the next. With this, unemployment meant 4 % and above, until she approached 5 %. These are low with historical standards, but they are high from 3 % from 2022 that were The lowest since the 1970s.

Its analysis is immersed in the depth of the American consumer, a part that you find “very loved”. Whitney has divided consumers over the past five years, as it determined a flagrant contradiction between the “high -ranking consumer” and what indicates the “avocado toast consumer”. The last group, especially the educated individuals of the college, and high -spending between the ages of 24 and 38, and who often do not have their homes but they have a major appreciation income, a major engine of the economy. This demographic contradicts more than 52 % of families that were “struggling”.

However, this wealthy and younger regiment now faces important financial opposite winds, as she said, largely due to the resumption of student loans and providing imminent support for health care. Whitney explained that for nearly five years, there were no penalties for not paying student loans, creating a false sense of financial freedom. While the “on the slope” period for one year without penalties exceeding the inclusion of the benefits was valid, the payment was officially resumed in October 2024. Although many of them started paying, a large part was not, with 25 % of student loan holders and more than 50 % of the total student loan debts that focus within the age group 24-38.

For those who have resumed payments, the influence has already been affected, which led to the suppression of clear spending in the weak performance of fast service restaurants such as Panera, Cava and SweetGreen. Whitney warns that the situation is about to exacerbate, with impending wage decorations in order to seriously, the students ’loans are scheduled to press this group. Sweetgreen, to her point of viewShe cut her outlook during the last two quarters, as the sales of the same store fell into a lengthy recession, as CEO Jonathan Niman shook the list to lead to protein as he tries to give customers more uproar for the “sad office authority”.

More subsidies end

In addition to this pressure is the end of the main health care benefits at the end of the year. In response to Covid-19, the US Rescue Plan Law supported the health care premiums for individuals who earn up to 400 % on the poverty line, actually providing $ 300 a month of estimated income for many. This feature, in addition to a temporary pause on student loan payments, has reached a “huge amount of estimated spending” that will now disappear.

Whitney emphasizes that the cumulative effect of wage measurement on students ’debts and stopping health care will create a” completely different kind of opposite wind “next year, especially for General Z and Millennials. Companies have greatly focused their marketing efforts on these young generations, which will now test “real pressure on consumer spending.” Thus, Whitney predicts that “Gen Z and Millennials will be very weak next year. ”

For this story, luck The artificial intelligence is used to help with a preliminary draft. Check an editor of the accuracy of the information before publishing.

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