Rellevate News

The Backbone Of America’s Economy Might Be Suffering A Serious Blow

The Tale Of 2 Economies

On the surface, the U.S. economy seems to be robust and resilient mostly due to the consumer, whose spending makes up around 70% of GDP. However, cracks are beginning to appear…

Economists are now worrying that the economy represents a tale of two Americas. Some businesses and consumers continue to thrive, while others are falling by the wayside and taking on such high levels of debt to cover their spending, so much so that lenders have stopped loaning them money. As more income is directed toward debt repayment, these financially stressed consumers have less disposable income for other purchases

The ‘stressed’ side of this fractured consumer economy now has the potential to snowball and deliver a series of serious blows that could lead to a broader economic slowdown or even a recession

What’s Happening and How Rellevate Can Help

Economic activity in the U.S. remains relatively strong, but there are signs that the momentum is beginning to cool. Unemployment rose to 3.9% last month, lower-income consumers are spending less, and businesses are limiting employee hours and pay

“The economy is bifurcated into the haves and have-nots, as middle-class Americans are struggling with rising prices and lagging wage growth”

-Skyler Weinand, Chief Investment Officer, Regan Capital

Wall Street earnings season is also exemplifying this growing divide. McDonald’s reported that consumers are seeking better value, Starbucks said that customers are becoming more particular about spending and Mondelez executives discussed an increase in price sensitivity during their earnings call

two dollar signs with arrows circling them three-quarters of the way around each arrow

The Tale of 2 Paydays…

The Old Way

Traditional paydays (every 2 weeks, or worse, every month) are proving to impact lower-income employees’ cash flows, forcing them to use credit cards more often (and not paying them off every month), increase the use of payday loans, and suffer late penalties/fees on everything (from rent to car payments to utilities). When combined, the traditional payday cycle is costing American workers thousands each year

The New Way

Rellevate’s Pay Any-Day (or Earned Wage Access) is a new way for cash-strapped employees to get paid everyday (at zero cost), thereby allowing them better cash controls and money management tools resulting in:
✓ Up to a 32% increase in the ability to meet basic needs
✓ Approximately $1,200 a year in savings
✓ Reduction of on-the-job financial stress by 76%

Share the Post:

Related Posts