As financial fears mount, some Americans are "doom spending," or spending money despite their economic and geopolitical concerns, as a way to cope with stress.
That may be part of it but isn’t a full explanation. For instance black Friday spending increased by 7.5% compared to last year, whereas inflation increased 3.2% over the last year.
Eh, given the sales that go on black Friday, people may have been saving for large but necessary purchases. That black Friday was as big as it was is also a sign that people are trying to save a buck.
I know I picked up a washer and dryer, and not much else
You may be right, October retail sales growth was weaker and something like 2.6% growth (just under the 3.2% inflation) as described in articles linked by the posted article. When the year finishes there will be more concrete data beyond just black Friday to find out for sure.
I think there’s a real argument to be made in favor of the doomspending hypothesis, particularly with younger millenials and housing. If you accept that you’re simply not going to be buying a house any time remotely soon, the temptation grows to just say fuck it and go buy some nice stuff or go on a trip.
That’s what happens when literally everything costs more than it used to.
That may be part of it but isn’t a full explanation. For instance black Friday spending increased by 7.5% compared to last year, whereas inflation increased 3.2% over the last year.
https://www.cnbc.com/2023/11/28/black-friday-weekend-shopping-turnout-soars-to-a-record.html
https://www.bls.gov/news.release/archives/cpi_11142023.pdf
People are increasing their consumption still.
Eh, given the sales that go on black Friday, people may have been saving for large but necessary purchases. That black Friday was as big as it was is also a sign that people are trying to save a buck.
I know I picked up a washer and dryer, and not much else
You may be right, October retail sales growth was weaker and something like 2.6% growth (just under the 3.2% inflation) as described in articles linked by the posted article. When the year finishes there will be more concrete data beyond just black Friday to find out for sure.
I think there’s a real argument to be made in favor of the doomspending hypothesis, particularly with younger millenials and housing. If you accept that you’re simply not going to be buying a house any time remotely soon, the temptation grows to just say fuck it and go buy some nice stuff or go on a trip.
Speaking with an n of 1, I’ve certainly noticed I tend to spend more impulsively when stressed. Definitely a theory.