Tariff News are Causing Gen-Z to be on High Alert about Recession Indicators

There is ongoing discourse on the internet about the state of the economy and how the policies enacted by the Trump administration is shaping the livelihood of U.S. based consumers. Gen-Z is growing frantic about behaviors and trends that make the possibility of a recession a reality. Those attributes dubbed recession indicators are communicated through memes and social media comment sections, and they transcend every industry, ranging from entertainment to finance. A resurgence of 2010’s R&B and pop records, low-rise denim jeans, Ed Sheeran, and Capital One’s recent merger with Discover. These are all recession indicators according to Gen-Z.

 

Rising anxiety due to policy

When President Donald Trump introduced sweeping tariffs on the U. S’s. major trading partners, speculators could not help but to discuss how the sudden decisions would affect our daily lives and consumption habits. The stock market’s reaction to the news amplified consumers growing anxiety, and the increase in prices on everyday consumer goods such as eggs and baby items is leading to a growing feeling of pessimism as it pertains to personal finances. While economists and other experts on traditional channels like CNBC and Bloomberg are having ongoing discussions about fiscal policy, Gen-Z and the internet are taking a different approach: they are meme-ing through it.

 

What is a recession indicator?

In short, a recession indicator is a sudden lifestyle or culture change to reduce the cost of daily expenses. They come in many forms including scaling back on dining out and opting for home-cooked meals, women going back to their natural hair color, and even fashion choices such as the growing popularity of large pants and outfits that could mistake one for being homeless. There are various think pieces on the internet that poke fun at these recession-oriented attributes.

Coping mechanisms

There is no uncertainty that we are living in ambiguous times as it pertains to fluctuations in prices, some have even lost complete hope in buying a home or attaining the American Dream, but nonetheless there many actionable ways to deal with recession anxiety such as establishing financial discipline, side hustles, and other creative ways to supplement income. For those with a higher risk tolerance and financial savvy, the equity markets could present an opportunity during downturns or recessionary periods. It is important to note that this is not financial advice as everyone’s situation is different, so consult with a licensed financial professional for a sound plan on how to navigate financial anxiety.

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