In the fourth quarter of 2024, increased economic pressures continued to affect households in the United States. With inflation at 2.9% by December, 65%
The interest does not come from lending the money. Heck, the DEBT doesn’t even come from lending the money. Banks can basically create money to loan with out of thin air thanks to fractional reserve banking.
Seems like the headline is just another way to say the same.
At the same time USA is one of the richest countries in the world?
Richest by GDP. And extracting all the wages they pay us is the optimal way to maximize GDP.
Money sitting in accounts making interest does not contribute to GDP.
Doesn’t the interest come from lending out the money?
The interest does not come from lending the money. Heck, the DEBT doesn’t even come from lending the money. Banks can basically create money to loan with out of thin air thanks to fractional reserve banking.