Intuit CEO says Gen Z is staving off recession by putting it on plastic: ‘Credit card balances are up 36-37%, but they still have jobs’

Core Insights - Gen Z consumers are facing an affordability crisis, leading to record-high credit card balances [1][2] - Despite a strong job market, Gen Z's credit scores are at an all-time low, with credit card balances increasing by 36-37% [2] - Inflation continues to impact purchasing power, with Gen Z earning less than previous generations when adjusted for inflation [2][3] Economic Context - Headline inflation rose to 3% in September, exceeding the Federal Reserve's target of 2% [3] - A significant portion of Gen Z earns less than $50,000, which is below the median household income in 91% of surveyed cities [3] - Millennials and Gen Z collectively hold only 10.7% of America's wealth, indicating a disparity in wealth distribution [4] K-Shaped Economy - The economy is exhibiting a K-shaped recovery, where wealthier individuals are benefiting from asset ownership while lower-income earners face rising costs [5] - Essential costs, such as groceries and energy, are increasing, further straining the financial situation of Gen Z and other low-income groups [5][6] - Consumers across all demographics are becoming more cautious about their spending habits due to rising prices [6]