Part 9/10:
In 2025, Americans are spending over $560 billion annually just to service interest on their debts. Rising interest payments have eclipsed wage growth, significantly limiting any disposable income left for other expenditures. As consumer spending constitutes around 70% of U.S. GDP, this shift suggests less money flowing into businesses, restaurants, and economic growth sectors.
Defaults can initiate a cycle of missed payments and tightened credit. As more individuals show delinquency in one area, that can lead to falling behind on others, potentially escalating into broader economic instability.