Billionaire venture capitalist Chamath Palihapitiya believes that the US economy is already in the midst of a downturn.
In a new episode of the All-In Podcast, Palihapitiya explores why more than half of Americans believe the economy is in a recession even though the GDP rose by 1.6% last quarter.
According to Palihapitiya, the negative sentiment may have something to do with the components used to measure the GDP, which he notes may be giving an inaccurate sense of the state of the US economy.
“[The GDP] is the sum of four things. Most of it is what people spend. Then the next big chunk is what companies and governments spend and the last is what we export to other countries.”
Source: All-In Podcast/YouTube
The billionaire explains that consumers and companies tend to save and scrimp when interest rates are high. Palihapitiya says consumers would…
