Authored by Michael Snyder via The Economic Collapse blog,
The economy has been the number one issue for U.S. voters for several years in a row, and it isn’t because things are good.
Consumer confidence is at an all-time low, inflation is starting to accelerate once again, mass layoffs are being conducted all over the nation, and delinquencies and foreclosures are soaring. Nobody can dispute any of the facts that I am about to share with you. We have an enormous economic mess on our hands, and now the crisis in the Middle East threatens to plunge the entire global economic system into chaos in the months ahead. In other words, conditions are not good now and the outlook for the future is not promising at all.
The following are 18 shocking facts that prove that the U.S. economy is in far worse shape than most people realize…
#1 Consumer confidence in the United States has fallen to an all-time record low…
Consumer confidence plunged to a record low in April as fears mounted over rising energy prices and the broader impact of the Iran war, according to a University of Michigan survey Friday.
The university’s headline index of consumer sentiment tumbled to 47.6, down 10.7% from the March survey to its lowest on record. Current conditions and expectations indexes also saw double-digit monthly declines.
#2 Student loan delinquencies have exploded to a level that we have never seen before…
Student loan delinquency has climbed to roughly 25 percent of borrowers with payments due during the first year of the current Trump administration, according to new analysis.
Researchers from The Century Foundation and Protect Borrowers said the sharp rise in missed payments, nearly triple the pre-coronavirus pandemic rate, has pushed millions into default risk and lowered credit scores, warning of broader financial fallout for households and colleges facing higher nonpayment rates.
#3 The monthly cost of owning a home has risen to absurd heights…
All in, the median monthly housing payment for an owner — including mortgage principal and interest, taxes, homeowners insurance, and estimated maintenance expenses — has ballooned to more than $2,800, a staggering 72% jump from $1,635 six years earlier.
#4 Foreclosure filings were way up in 2025, and so far in 2026 we are 26 percent above last year’s pace…
A fresh wave of foreclosures is sweeping across the United States, with more than 118,000 homes caught up in the crisis in just the first three months of 2026.
It is a grim omen – with echoes of the run up to the 2008 Great Recession – that financial pressure is mounting for thousands of families.
New Attom data shows 118,727 properties were hit with a foreclosure filing in the first quarter – up 26 percent on the same period last year.
#5 The number of Americans that cannot pay their credit card bills in full each month has reached another record high…
More than 111 million people could not pay off their monthly credit-card bills in full at the end of last year, marking a new record, according to new estimates from consumer advocates. That’s roughly 2 million more people unable to pay in full compared to the end of 2024, they noted.
These card holders now owe banks more than $1 trillion — and most are inching closer to maxing out their credit lines, according to researchers at the Century Foundation, a progressive think tank, and Protect Borrowers, a nonprofit group that advocates for borrowers.
#6 As the cost of living soars, people are pulling money out of their 401(k) plans at a record rate in a desperate attempt to make ends meet…
More Americans are digging into their retirement savings because of financial emergencies.
Last year, a record 6% of workers in 401(k) plans administered by Vanguard Group took a hardship withdrawal. That is up from 4.8% in 2024 and a prepandemic average of about 2%, according to Vanguard.
#7 Food prices continue to escalate, and the price of coffee has more than doubled since 2019…
A 16-item basket of groceries made up of staples like eggs, bread, and meat — no truffle cheese in our cart — rang in nearly 43% higher in March compared to the same month in 2019.
A few key categories are behind the rise: Coffee prices have more than doubled since the pandemic, while beef prices have soared more recently.
#8 For the first time ever, the price of a pound of ground beef is now higher than the federal minimum wage in many parts of the country…
The cost of a pound of ground beef has hit a major threshold. Depending on where you shop, the grocery staple likely costs more than the federal minimum wage.
Money analyzed ground beef prices at seven of the most popular grocery chains across the U.S., finding that 1 pound of the typical 20% fat ground beef costs between $6.49 and $8.96. Organic, grass-fed and leaner varieties tend to cost much more.
On the other hand, the federal minimum wage sits at $7.25 per hour.
#9 The Federal Reserve is telling us that 42.5 percent of recent college graduates were underemployed at the end of 2025…
Historically, college graduates have tended to find jobs faster and experience lower unemployment than workers without a degree. But recent data suggests it’s now harder to find a job that fits your skill set once you graduate.
According to the Federal Reserve of New York, 42.5% of recent college graduates (aged 22 to 27 with a bachelor’s degree or higher) are underemployed as of December 2025 — the highest rate since October 2020. Underemployment refers to working in a role that underutilizes your skills, usually at a lower wage or in a part-time position.
#10 We continue to see retailers close locations all over the nation at a staggering rate. For example, Grocery Outlet has announced that they will be permanently closing 36 stores…
Grocery Outlet – the California-based retailer famous for selling products at steep discounts – says it will close 36 stores nationwide as part of a sweeping restructuring plan designed to improve profitability.
The company revealed the move while reporting its latest financial results, saying it had conducted a ‘strategic, financial and operational analysis’ of its entire store network.
#11 Not to be outdone, Papa John’s has announced that they will be closing approximately 300 restaurants…
Pizza chain Papa John’s said it plans to close hundreds of underperforming restaurants in North America by the end of next year.
“We have identified approximately 300 underperforming restaurants across North America that are not meeting brand expectations or lack a clear path to sustainable financial improvement, as well as locations where we can effectively transfer sales to a nearby restaurant,” Papa John’s Chief Financial Officer Ravi Thanawala said last week during the company’s fourth-quarter earnings call.
#12 One of our “too big to fail” banks has decided that now is the time to cut about 2,500 jobs…
Morgan Stanley is slashing about 3% of its global workforce — roughly 2,500 jobs — across its key divisions, as the Wall Street giant realigns priorities amid a banner year for profits, sources familiar with the matter have told The Post.
The cuts hit the Ted Pick-led lender’s investment banking, trading, and wealth management units, the people close to the situation said.
#13 EBay will be conducting yet another round of layoffs. This time around approximately 800 workers will get the axe…
EBay said Thursday it is cutting about 800 roles, or 6% of its workforce, in the latest round of layoffs at the e-commerce company.
“We are taking steps to reinvest across our business and align our structure with our strategic priorities, which will affect certain roles across our workforce,” an eBay spokesperson said in a statement. “We are grateful for the contributions of the employees impacted and are committed to supporting them with care and respect.”
#14 At one time Wendy’s was doing great, but in 2026 it will be permanently shuttering hundreds of locations…
Fast-food chain Wendy’s will shutter 5% to 6% of its stores nationwide in the first half of 2026 as part of an ongoing downsizing plan.
Interim CEO Ken Cook first told investors in a Nov. 7 quarterly earnings call that the company would be closing a “mid single-digit percentage” of its nearly 6,000 locations nationwide.
#15 Meta, the parent company of Facebook, apparently intends to let nearly 8,000 employees go in the very near future…
Meta is preparing to cut thousands of jobs as early as next month, with deeper layoffs expected later this year, according to a report.
The tech giant intends to slash roughly 10% of its global workforce — or nearly 8,000 employees — in an initial round of cuts on May 20, sources told Reuters.
The company is also planning additional layoffs in the second half of the year, though details including timing and scope remain unclear, the outlet reported.
#16 From coast to coast, thousands of supply chain workers have been told to hit the bricks in recent weeks…
A wave of layoffs across U.S. supply chains — from EV battery plants and auto parts factories to warehouses and rail terminals — has affected nearly 4,000 workers in recent weeks, according to company announcements and WARN filings across multiple states.
Recent WARN filings and company announcements show job cuts across at least a dozen companies in states including California, Georgia, Tennessee, Texas, Ohio, South Carolina, Pennsylvania and Alabama.
The largest layoffs in the recent wave are coming from the automotive and industrial supply chain. SK Battery America said it laid off 958 workers — about 37% of its workforce — at its electric vehicle battery plant in Commerce, Georgia, citing shifting EV demand as automakers reassess production plans.
#17 According to Newsweek, the following list of companies have all announced layoffs during the month of April…
- Blue Shield of California
- Zenith Logistics
- Perdue Foods
- ERN Services
- Boston Electrometallurgical Corporation
- First Brands Group
- GEODIS
- MicroVision
- IPIC Theaters
- Goulet Trucking
- CJ Logistics
- L3Harris
- Supernal
- Heritage Bank of Commerce
- Angel City Brewery
- VCA Bay Area Veterinary Specialists
- Monroe Operations
- Meteor Creative
- Viskon-Aire Corporation
- C3.ai
- Safari West
- Main Street Sports Group Cincinnati
- Raley’s
- Koppers
- Wells Fargo
- Lucid Group
- Hornblower Cruises and Events
- Charles River Laboratories
- Wescom Financial
- Bluum USA
- CHS Northwest
- Catalent
- Liberty Dental Plan
- GXO Logistics
#18 The total unfunded obligations of the U.S. government have now reached a staggering total of 130.12 trillion dollars…
On March 17, 2026, the U.S. Department of the Treasury quietly released the federal government’s fiscal year 2025 financial report. Buried in its tables is a number that should dominate our national conversation – but doesn’t: Total federal obligations now stand at $130.12 trillion.
That figure is not a rounding error or a political talking point. It is derived from the government’s own accounting – combining the reported negative net position (driven largely by bonded debt) with the present value of projected shortfalls in major social insurance programs. Yet public debate continues to revolve almost exclusively around the much smaller figure of Treasury securities outstanding.
There is no way that anyone can spin the facts that I have just shared with you to make them look good.
So if conditions are already this bad, what will things be like six months from now if the Strait of Hormuz is still closed?
We really are in unprecedented territory, and the truth is the economic conditions could easily get a lot worse during the months ahead.
Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.
