Liz Ann Sonders of Charles Schwab: Years of a Continuous Recession

Liz Ann Sonders, Charles Schwab chief investment strategist and managing director, joins ѓquawk on the StreetҠto discuss recession calls for investors, how Sonders thinks about macro headwinds going forward, and more. For access to live and exclusive video from CNBC subscribe to CNBC PRO:

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Charles Schwabҳ Chief Investment Strategist, Liz Ann Sonders, recently made waves with her assertion that the United States has been in a Ӳolling recessionԠfor years. SondersҠcomments have once again ignited a debate around the state of the American economy and how it has been impacted by various factors.

A recession is traditionally defined as a period of economic decline marked by reduced economic activity, high unemployment rates, and a contraction in various sectors. It is usually characterized by negative GDP growth for at least two consecutive quarters. However, Sonders argues that the standard definition is no longer sufficient to capture the economic reality in the United States.

According to Sonders, the rolling recession is a prolonged period of below-average economic growth and a lackluster recovery that has lasted for years. She argues that while the headlines may suggest that the economy is recovering, the reality is far from rosy for many Americans. Sonders highlights several reasons for her assessment, including stagnant wage growth, rising income inequality, and persistently low inflation.

One of the most significant factors behind this rolling recession, as Sonders points out, is the growing wealth gap. Despite the stock market reaching record highs, the fruits of this growth have not been evenly distributed. The majority of gains have gone to the wealthiest individuals, exacerbating income inequality and leaving average workers struggling to make ends meet.

Another factor contributing to the rolling recession is wage stagnation. While unemployment rates have been low, wage growth has remained sluggish. This has made it challenging for many households to keep up with the rising cost of living. Inflation, too, has stayed unusually low, making it difficult for the Federal Reserve to stimulate economic growth through interest rate adjustments.

SondersҠanalysis challenges the prevailing narrative that the U.S. economy is in a constant state of expansion. She argues that despite headline indicators suggesting otherwise, millions of Americans have yet to experience the beneficence of a robust recovery. This rolling recession, in her view, is a wake-up call for policymakers and investors to reassess their traditional measures of economic health.

SondersҠcomments have generated both support and criticism. Supporters believe that her analysis brings attention to the underlying problems faced by many Americans. They argue that policymakers should shift their focus towards addressing income inequality and ensuring more inclusive economic growth.

However, critics argue that SondersҠperspective is too pessimistic. They contend that the traditional indicators still do hold value in assessing economic health and that the recovery should not be dismissed. They point out that GDP growth has been positive, unemployment rates have steadily declined, and the stock market has experienced notable success.

Despite the debate, it is crucial to acknowledge SondersҠanalysis as a reminder that the American economy is complex and multifaceted. While it is true that traditional economic measurements may not fully capture the lived experiences of many individuals, it is equally important not to discount positive aspects of the recovery.

The concept of a rolling recession prompts an essential discussion about income inequality, wage growth, and the well-being of everyday Americans. Whether or not one agrees with SondersҠassessment, her comments serve as a reminder that an all-encompassing understanding of the economy requires a nuanced and empathetic approach.

Liz Ann Sonders of Charles Schwab: Years of a Continuous Recession appeared first onInflation Protection.
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