Historic Corporate Bankruptcy Surge: Middle Class Under Siege
Submitted by MAGA
Posted 30 days ago
A historic surge of corporate bankruptcies is sweeping across the United States, with 75 companies filing for bankruptcy in June alone. This is the highest number recorded in a single month since the height of the COVID-19 pandemic in early 2020. The total number of bankruptcies so far this year has reached 346, which is notably higher than comparable levels seen in the past 13 years. This surge in bankruptcies is worse than anything witnessed since the first half of 2010, when the country was just coming out of the Great Recession.
One of the companies on the verge of bankruptcy is Big Lots, a discount retail chain that announced it will close up to 40 stores this year and may declare bankruptcy. The company wrote in a quarterly Securities and Exchange Commission filing that it expected further operating losses and had "substantial doubt" it could continue as a functioning business. Big Lots reported a net loss of $205 million in the quarter ending May 4, 2024.
This surge in bankruptcies comes as millions of Americans are struggling to make ends meet. According to a 2023 survey conducted by Payroll.org, 78% of Americans live paycheck to paycheck, a 6% increase from the previous year. Similarly, a 2023 Forbes Advisor survey revealed that nearly 70% of respondents either identified as living paycheck to paycheck (40%) or reported that their income didn’t even cover their standard expenses (29%).
The middle class is being ripped to shreds, and those running the system seem to be all out of answers. Young adults in particular are having a difficult time in this environment. A survey conducted by Bank of America found that nearly half of adult members of Generation Z are relying on financial help from their parents and family members.
This economic downturn is likely to have a significant impact on the upcoming election season. The performance of the economy will play a major role in the outcome of the election, as millions of Americans are suffering right now. The unprecedented measures taken by leaders to prop up the economy have worked for a while, but now cracks are starting to show all over the place.
In other news, the electric vehicle industry is facing several vexing problems that seem almost insurmountable at this point in time. Despite ample subsidies from the federal government, EV sales are slumping. Some of the largest automakers, such as Mercedes Benz, admit they won’t come close to hitting their EV sales estimates over the next few years. And Tesla, the king of EVs, just announced its lowest quarterly profit over the past two years.
Additionally, Hyundai Motor North America is facing a lawsuit that contends the auto manufacturer "has emphasized sales-volume growth in its Hyundai branded EVs, leading the public to believe these increasing EV sales are occurring organically because of the desirability of Hyundai EVs and customer demand for these vehicles." The lawsuit alleges that Hyundai pressured dealerships to "artificially inflate" EV sales numbers and created a perverse incentive system in which dealerships that "played ball" were rewarded while those who did not were "punished."
Another major concern for EV owners is the possibility of chargers catching fire. Consider what recently happened to NFL star receiver Randall Cobb, whose home burned down after the Tesla charger in his garage caught on fire. Cobb's wife, Aiyda, posted to Instagram that the fire was "extraordinarily dangerous" and that they were "lucky to be alive."
These incidents highlight the dangers of EV fires, which are extraordinarily difficult to fight. The National Transportation Safety Board notes that EV fires pose the risk of electric shock to emergency responders and can lead to hazards such as battery reignition/fire.
In conclusion, the economic downturn and the struggles of the electric vehicle industry are likely to have a significant impact on the upcoming election season. The performance of the economy will play a major role in the outcome of the election, as millions of Americans are suffering right now. The unprecedented measures taken by leaders to prop up the economy have worked for a while, but now cracks are starting to show all over the place. It remains to be seen how these issues will be addressed in the coming months.
Sources:
activistpost.com
americanthinker.com
noqreport.com
One of the companies on the verge of bankruptcy is Big Lots, a discount retail chain that announced it will close up to 40 stores this year and may declare bankruptcy. The company wrote in a quarterly Securities and Exchange Commission filing that it expected further operating losses and had "substantial doubt" it could continue as a functioning business. Big Lots reported a net loss of $205 million in the quarter ending May 4, 2024.
This surge in bankruptcies comes as millions of Americans are struggling to make ends meet. According to a 2023 survey conducted by Payroll.org, 78% of Americans live paycheck to paycheck, a 6% increase from the previous year. Similarly, a 2023 Forbes Advisor survey revealed that nearly 70% of respondents either identified as living paycheck to paycheck (40%) or reported that their income didn’t even cover their standard expenses (29%).
The middle class is being ripped to shreds, and those running the system seem to be all out of answers. Young adults in particular are having a difficult time in this environment. A survey conducted by Bank of America found that nearly half of adult members of Generation Z are relying on financial help from their parents and family members.
This economic downturn is likely to have a significant impact on the upcoming election season. The performance of the economy will play a major role in the outcome of the election, as millions of Americans are suffering right now. The unprecedented measures taken by leaders to prop up the economy have worked for a while, but now cracks are starting to show all over the place.
In other news, the electric vehicle industry is facing several vexing problems that seem almost insurmountable at this point in time. Despite ample subsidies from the federal government, EV sales are slumping. Some of the largest automakers, such as Mercedes Benz, admit they won’t come close to hitting their EV sales estimates over the next few years. And Tesla, the king of EVs, just announced its lowest quarterly profit over the past two years.
Additionally, Hyundai Motor North America is facing a lawsuit that contends the auto manufacturer "has emphasized sales-volume growth in its Hyundai branded EVs, leading the public to believe these increasing EV sales are occurring organically because of the desirability of Hyundai EVs and customer demand for these vehicles." The lawsuit alleges that Hyundai pressured dealerships to "artificially inflate" EV sales numbers and created a perverse incentive system in which dealerships that "played ball" were rewarded while those who did not were "punished."
Another major concern for EV owners is the possibility of chargers catching fire. Consider what recently happened to NFL star receiver Randall Cobb, whose home burned down after the Tesla charger in his garage caught on fire. Cobb's wife, Aiyda, posted to Instagram that the fire was "extraordinarily dangerous" and that they were "lucky to be alive."
These incidents highlight the dangers of EV fires, which are extraordinarily difficult to fight. The National Transportation Safety Board notes that EV fires pose the risk of electric shock to emergency responders and can lead to hazards such as battery reignition/fire.
In conclusion, the economic downturn and the struggles of the electric vehicle industry are likely to have a significant impact on the upcoming election season. The performance of the economy will play a major role in the outcome of the election, as millions of Americans are suffering right now. The unprecedented measures taken by leaders to prop up the economy have worked for a while, but now cracks are starting to show all over the place. It remains to be seen how these issues will be addressed in the coming months.
Sources:
activistpost.com
americanthinker.com
noqreport.com
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