Search on TFTC
Recession Hits Major Economies Around the Globe

Recession Hits Major Economies Around the Globe

May 22, 2024

Recession Hits Major Economies Around the Globe

A total of 13 affluent nations are experiencing per capita recessions, where the Gross Domestic Product (GDP) per person is on the decline, effectively rendering citizens poorer. The list of countries includes economic powerhouses such as Canada, Germany, France, the United Kingdom, and Australia. Japan, too, has reported a worrying negative 2% growth, teetering on the brink of joining this disquieting group. Economic orthodoxy dictates that two consecutive quarters of negative growth constitute an official recession, unless, as some critics suggest, the media narrative shifts to redefine this benchmark.

The United States appears to be outperforming its developed peers, albeit with marginal growth that barely keeps pace with its population increase. A report by Bloomberg attributes this wave of per capita recessions to a toxic mix of deindustrialization and immigration. Deindustrialization is characterized by a confluence of escalating taxes, surging regulatory demands, soaring energy costs, and a proliferation of mandates spanning from green energy to diversity initiatives. These factors collectively exert pressure on manufacturing, especially small-scale operations, and shift the workforce towards less productive service roles.

The economic impact is stark: a report from the National Association of Manufacturers last year estimated that federal regulations alone impose a cost of nearly $25,000 per worker on large manufacturers, and a staggering $50,000 per worker on smaller manufacturers—figures that exceed worker salaries. For business owners, this means for every dollar spent on employee wages, an additional $1.25 is allocated strictly to regulatory compliance, not accounting for the additional tax burden or the layers of state, county, and city regulations that compound the complexity and cost of doing business.

The second causative factor is immigration. While historically beneficial, enabling countries to attract top talent, the current patterns of mass migration are not yielding the same economic dividends. Instead, the influx of immigrants has often resulted in increased financial strain on public services, downward pressure on blue-collar wages, and has not effectively addressed labor shortages, as new arrivals contribute to the demand for services and jobs. Canada, for instance, admitted a million working-age immigrants last year but created only 324,000 jobs, thus exacerbating the job market for inexperienced workers and the youth.


Current Block Height

Current Mempool Size

Current Difficulty