By Blake Jackson
During the first 100 days of the new US administration, the economy has experienced a bumpy start. Economic output declined in the first quarter of the year, and many Americans are feeling the pressure.
Small business owners like Jeremy Rice in Kentucky describe the current challenges as yet another hurdle after surviving the housing crisis and the COVID-19 pandemic. His decor business, which relies on non-essential goods, is affected by reduced consumer spending.
Cindy Ayers Elliott, who runs a farm in Mississippi, is dealing with higher production costs and reduced government support. She noted that rising prices for gas, fertilizer, and food affect both producers and buyers.
Retirees like Maureen Hatfield in Florida also feel the pinch. Living on a fixed income, she shared how grocery prices, especially for basic items like eggs, continue to rise.
Economists say the main concern is that families are cutting back on non-essential spending. Greg Daco from EY-Parthenon explained that spending in restaurants and bars has decreased as people prepare for higher costs.
Although the job market remains strong with low unemployment, workers are feeling uneasy. Seth Lilavivat, who works in biotechnology, worries about being laid off after his company made staff cuts. He is now saving more and spending less.
Global trade is also slowing down. Gene Seroka from the Port of Los Angeles explained that fewer goods from China are arriving due to new tariffs, leading to reduced hours for transport workers.
Experts warn that while a recession is not certain, the risk has increased. The future will depend on whether trade tariffs continue or are reduced. Until then, growth is likely to remain slow.
Photo Credit: istock-fangxianuo
Categories: Kentucky, Business