Bob Elliott
· Nonconsensus
· February 24, 2026 at 11:24
| Read on Substack ↗
Summary
The author argues that the US economy is undergoing a significant transition from an income-driven to a dissavings-driven expansion. In 2026, households, businesses, and the government are all expected to reduce savings and increase borrowing, which the author believes will boost near-term growth and profits despite long-term debt concerns.
•A major macroeconomic shift is occurring from an income-driven to a dissavings-driven expansion.
•Households, businesses, and the US government are all poised to reduce savings and increase borrowing in 2026.
•This trend of dissaving is expected to lift near-term economic growth and corporate profits.