Part 7/9:
The implications of this economic strain are far-reaching. As disposable incomes dwindle, consumer spending is becoming increasingly conservative. This decline could trigger a chain reaction in which credit card companies and retailers begin to feel the pressure from rising defaults and decreased consumer patronage.
Simultaneously, corporations facing heightened debt servicing costs must navigate the risk of increased operational expenses. If businesses find themselves unable to absorb these expenses without making significant adjustments—such as cutting costs, increasing prices, or downsizing—the broader economy could face further ripples of instability.