TL;DR
International tensions are decimating the US tourism sector, and the $90 billion loss projected by Goldman Sachs is just the tip of the iceberg. It’s a grim reminder that political games have real-world consequences—and the average citizen often pays the price.
Story
The house of cards is crumbling, folks, and this time it’s the US tourism industry taking the hit. Bloomberg reports Goldman Sachs slashed their 2025 US tourism revenue projections by a staggering $90 billion. That’s not pocket change; that’s a gaping hole in the economy.
How did we get here? Well, it seems playing political hardball has consequences. Deteriorating international relations, travel advisories, and a general sense of unease are keeping tourists away. Canadians, once eager for cross-border hops, are now 70% less likely to fly down during peak season. It’s a domino effect: hotels empty, malls deserted, restaurants struggling.
Remember 2008? The warning signs were there, but everyone ignored them. This feels eerily similar. The economy, like a Jenga tower, is built on interconnected blocks. Pull one out—like international tourism—and the whole thing wobbles. And who suffers most? The everyday folks: business owners, employees, families dependent on tourism dollars. It’s not just numbers on a spreadsheet; it’s livelihoods shattered.
The real kicker? The $90 billion loss is just Goldman’s worst-case scenario. It could get even uglier. International visitors aren’t just skipping Disneyland trips; they’re canceling Boeing orders. This ripple effect could be devastating.
‣ Gross Domestic Product (GDP): The total value of everything a country produces in a year. It’s like a nation’s report card, but with money instead of grades.
‣ Travel advisory: A warning from a government to its citizens about risks in traveling to a particular country. It’s like a neon sign flashing ‘Proceed with caution—or better yet, don’t.’
Advice
Diversify your investments. When one sector tanks, you don’t want all your eggs in that broken basket. And maybe brush up on history—it tends to repeat itself, especially when we ignore the warning signs.
Source
https://www.reddit.com/r/investing/comments/1k07zg6/bloomberg_reporting_that_goldman_sachs_adjusted/