Why are American consumers spending so much? They say the economy is bad, but they’re spending like it’s booming. For more than a year, economists have warned about the “death of the consumer” and a resulting recession — neither of which have materialized.
https://www.vox.com/money/24159281/consumer-spending-economy-inflation-interest-rates
by mafco
10 comments
Exactly.
Because the economy isn’t as bad as many people want you to believe. After the first of the year the political bots/paid schills have inundated economy subs with the intent to influence US voters.
They’re spending on credit. The average debt load of the American consumer explains this pretty easily.
Doom spending.
Millennials and Gen Z have given up and are just swiping credit cards.
We are living for today – nobody I know is saving for retirement, a house or family, or a safety net. (Not that many have much to set aside anyway.)
People are going in debt like crazy
> For more than a year, economists have warned about the “death of the consumer” and a resulting recession — neither of which have materialized.
Yet
People are spending because there are not alternatives
There are actual people who think they can bankruptcy when their credit goes to shit and they owe tens of thousands. They will not like hearing someone say that it’s not impossible to pay it back from a judge.
Low unemployment, high cost of living. People must spend to survive. They are working, earning paychecks and spending them. It’s as simple as that. The only thing that will slow the consumption is higher unemployment. And considering we are short like a million and a half workers over the last 5 years, it could be a while before we see unemployment high enough to affect consumption.
The economy is doing very well for a lot of people. Unemployment is very low, salaries are up, financial markets are at record highs, taxes are low. Inflation is a bugger but people have money.