FISCAL POLICY: THE U.S. FEDERAL DEFICIT IS EXPECTED TO DOUBLE THIS YEAR

How could retail investors protect their wealth against the impact government deficit? 

OAK PARK, Ill., Sept. 7, 2023 /PRNewswire/ -- The Lake Street Review announces that the U.S. government is set to double the federal deficit. What could retail investors do to alleviate the impact of the federal deficit on their investments?

Bidenomics, the economic policy of President Biden, has exacerbated the financial and economic conditions of the middle-and-low-income households. Real wages did not grow as fast as government spending. And the rise in interest rates makes it even more difficult for ordinary people to borrow money. But Bidenomics encourages people to spend more as a way to stimulate the economy. As a result, many American consumers ended up in more household debt in order to sustain their lifestyle, which decreased their real wealth. The forthcoming increase in federal deficit is set to erode the purchasing power and reduce the disposable income of ordinary Americans.

The way for ordinary people to mitigate the impact of the federal deficit on their finances is to have their finances tied to financial markets whether in the United States or in emerging markets such as African financial markets. While financial markets could be risky, retail investors have a better chance at preserving their wealth if not increasing it by investing in financial markets than having it in their savings account. Investing in paper assets, real estate, and commodities are the most accessible markets for retail investors. Investing in financial markets provides a shield for investors against the effect of government deficits on their finances.

The Lake Street Review focuses its content on financial markets, economics, business, and politics between the United States and Africa. It provides concise and thorough analyses of the financial, economic, and political conditions in Africa and the United States in order to equip U.S. investors with the right information necessary to make the best decision that suits their investment purposes.

Germinal G. Van and Frank Morales, the driving force behind the Lake Street Review, envision a future where investors will be well-equipped to invest in U.S. and African financial markets. They believe that Africa has the potential to become this land of economic miracles, capital needs to flow, and capital can only flow if those who own the means of production are well-informed enough to make these investments.

The Lake Street Review is an independent online news company that focuses on financial markets, economics, business, and politics in the United States and Africa. It is headquartered in Oak Park, Illinois.

SOURCE The Lake Street Review