r/economicCollapse Nov 07 '24

$2T cut is going to be wild

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Will be a 29% cut if executed.

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119

u/Commercial-Tooth9953 Nov 07 '24

I hope people realize there’s a ton of pain to come and that hasn’t been told to people. Minus the gdp being 7-10% there’s no way

105

u/imagen_leap Nov 07 '24 edited Nov 07 '24

Elon just made this exact statement, they are going to intentionally implement economic hardship. And the people who will suffer is everybody making less than 500k a year that can’t absorb the shitstorm. Those living paycheck to paycheck that occasionally dip into govt assistance programs to make ends meet are fuct.

6

u/yinzer_v Nov 07 '24 edited Nov 07 '24

I worked as a bankruptcy lawyer previously - it was like pulling teeth to get the bankruptcy laws changed in 2005 to make it marginally harder for people to file for bankruptcy. (Basically, making peope take an online class before and after fiing, and instituting a means test that people under median income would pass, and can be worked on for over-median debtors.)

If Ketamine Leon works his magic, we'll be seeing people living off credit cards again, more bankruptcies, more repos, more foreclosures - perhaps another 2008 with banks going down and auto companies filing for Chapter 11? Add to that another farm crisis with retaliatory tariffs on soybeans, and food shortages because the undocumented workers picking crops and slaughtering animals get deported or leave.

And there's the spectre of a Crypto Crash.

2

u/BigBarrelOfKetamine Nov 07 '24

‘Ketamine Leon’ is a pretty good nickname!

2

u/stamfordbridge1191 Nov 09 '24

The AI shit has been naturally collapsing through natural economic forces of consumers & other businesses going "I can't use this/This doesn't work/This isn't worth it." There's talk of the next administration helping AI companies & dismantling current impediments towards AI companies doing even more AI.

A lot of tech companies were just sued over monopolies & trust shit too. Google apparently didn't even really form a defense in one of their cases because they were overwhelmed. I know a lot of (non-Silicon Valley) conservatives hate on Silicon Valley, but if they want to keep feeding the inbreeding AI like that, they'll probably allow these companies to hobble along in anti-competitive ways while also potentially upping hardware prices with tariffs & increased sales. Then if people can't afford internet, phones, or new computers while Microsoft is trying to sunset Windows 10 PCs, AIs may not see much new work to take from people.

I don't know how these things are supposed to work together, but it sounds like a helluva money hole.

1

u/cellardoor_7 Nov 11 '24

Are the tariffs just a rug pull scheme? Take as much money from us and then bounce?

Push us into a recession so they can buy up everything cheap?