U.S. Heading Into Economic DEPRESSION
Hal Turner
Nation
November 08, 2025
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U.S. Heading Into Economic DEPRESSION
70 to 80 % of Americans are going into Ultra Low Consumption mode. We are headed for a depression.

Everyone is figuring out that most things we buy are optional and can, in fact, be made at home or skipped entirely. Let's start with restaurants. When they were a third of the price, it was a nice treat. Now with their exorbitant prices, time to cut it out. Time to cook nicer meals at home.

People are now using much less toothpaste to brush their teeth. They are using much less detergent to wash their clothes. They are cutting hair at home or going to the barber or hair salon much less frequently. Everything is being cut back or done without.

People are putting off tire changes or brake replacement until it is dangerous or maybe beyond that point. Maintenance and repairs are delayed. Getting the car detailed or just washed can be skipped or done less often.

Home maintenance is being done by the homeowners or put off. Home repairs or home improvements are being delayed or cancelled.

People are changing their buying habits. Now going to the Goodwill or other consignment store is not a source of embarrassment but common sense. Shopping at the Dollar Store is no longer for lower income people.

This is a huge problem for our economic system which relies on overspending and overconsumption. Store brands, once considered cheap, are now popular due to lower prices. If everyone goes full blown frugal, the system will crash. And the fact is that 70 to 80 % of Americans are going frugal to survive.

The whole paradigm of our modern consumer economy is being destroyed before our eyes. Impulse spending is out of style by necessity. We are heading back to the lowest rung of Maslow's hierarchy of needs - Food, shelter, and clothing, energy, transportation.

The fact is that most everything is an optional purchase. Do we really need a second or third pair of sneakers? Another shirt when we already have 5 of them? Do we need that better flat screen TV when the one we have works fine? Of course, the answer is No for most of our purchases. But we used to make these unnecessary, non essential purchases because we could afford it. Now only the top 10-20 % of the population income wise can afford it (but even upper income people are cutting back as well).

We are now in very dangerous economic territory for many people's jobs depend on the Overconsumption economy which is contracting fast. Without excessive AI spending and US Government deficit spending, the Economy would already be in a freefall.E