PITTSBURGH (NewsRadio 1020 KDKA) — Are we on the verge of a global economic crisis?
Jack Rasmus, Ph. D. in Political Economy, joined Chris Moore Sunday night to discuss just that.
Rasmus says we are on the verge of the third phase of the global economic crisis. The first being the banking crisis in 2008.
“The second phase, the global crisis moved from the U.S. to Europe. That was 2011-12, early ’13,” he explains. “And now we’re at the third phase, I believe, where the crisis is moving from U.S. and Europe, to what’s called ’emerging markets’ and China.”
Rasmus went on to explain China is economically unstable and is in great debt.
Rasmus thinks this is all culminating to a perfect storm.
He explains companies around the world are slashing wages and benefits in order to drop their prices to increase sales. However, if wages are being cut, people have less money to spend on goods.
Last year, there was a slight boost in the economy, but Rasmus explains it was misleading, based on credit spending.
“Those forces that were giving the economy a little boost last year, the housing market, the auto market and some spending based on credit, I see those coming to an end,” he said. “And just watch, folks, for the price increase in food coming here this spring, and gasoline. And that’s going to really take a big bite out of peoples spending patterns.”
Hear more from Dr. Jack Rasmus: