Washington, DC – Economic doomsayers are raising concerns about a potential collapse in the economy, with a rise in membership on the r/economiccollapse subreddit and increased interest in apocalyptic scenarios for the financial system.
Daniel, a Reddit user based in Washington, DC, has been following the r/economiccollapse subreddit for about four years. He believes that the US is heading towards an economic implosion similar to the collapse of the Soviet Union at the end of the Cold War. To prepare for this grim future, Daniel has diversified his investments into defense stocks, gold, crypto, and other assets that he believes will retain their value.
While experts argue that the economy is currently healthy, a growing number of individuals on online platforms like Reddit express concerns about a potential collapse in the economy. The sentiment has been fueled by frustration and anxiety that lingered after the pandemic. Searches for terms like “stock market crash” and “economic crash” have surged according to search analytics firm Glimpse.
Membership on the r/economiccollapse subreddit has increased by 80% from the end of 2021 to the end of 2023. Users on these platforms are warning about various doomsday scenarios, including stock market crashes, housing market collapses, and the total collapse of the US financial system.
Individuals like Freddie Smith, a Florida-based real estate agent, regularly post warnings about the economy on social media. Smith believes that the current economic situation is putting the middle class under immense pressure, leading to rising homelessness and more individuals living paycheck to paycheck if economic reforms are not implemented.
Despite the pessimism expressed by online communities, the US has managed to avoid a predicted recession in recent years. The labor market remains strong, with the unemployment rate staying near historic lows. Financial anxiety among Americans is at its highest level since 2012, as higher living costs begin to affect the middle class.
Jonathan Rose, CEO of the commodities firm Genesis Gold Group, notes a surge in the number of investors buying physical gold as a store of value since the pandemic. Rose attributes the increase in anxiety about the economy to the uncertainty and fear experienced during the pandemic, coupled with high government debt levels, rising geopolitical tensions, and stubbornly high inflation.
As individuals struggle to reconcile their lived experiences with the reported economic data, concerns about the economy persist. Many express frustration about the current economic system and its impact on the working class, highlighting the need for recognition of a broken system.
In conclusion, as perceptions of the economy differ from the reality, individuals continue to grapple with economic uncertainties and anxieties, leading to a surge in interest in apocalyptic scenarios and investments in assets like gold as a hedge against a potential economic collapse.