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.
  • FuglyDuckEnglish
    23•1 year ago

    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

    • @[email protected]
      1•1 year ago

      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. Forecasts are for all holiday spending to reach record levels this year beyond just what inflation would suggest. When the year finishes there will be more concrete data beyond just black Friday to find out for sure.

      I think doom spending is a reasonable idea.

      I think another piece is increasing wages. Those increased on average year over year in October by 5.2%. So many people probably feel individually they can afford the increased prices and buy even more on top. Though if you’re in an industry or situation where you haven’t been able to leverage the high labor demand and low unemployment for increased wages like most across the entire economy have been able to, you’re probably hurting.

      • FuglyDuckEnglish
        2•1 year ago

        I think, if the data is granular enough, you could see it in what people were buying. Of half the sales were in DVDs and grown-up-toys, then yeah, it’s doom spending.

        But I doubt anyone whose pay check to pay check or even remotely close just went out and drop loads of cash on things that weren’t either vaguely needed or budgeted into savings.

        Outside of Black Friday, spending increases are accounted for by increase in food and energy inflation- not to mention the cost of debt- especially revolving debt.

        Also consider, that the 5% gains you cite probably include people that don’t really need them. The rest of us see a net loss compared to inflation- maybe not yoy, but compared to the last three years certainly. Rememebe the whole point raising interest is to both reduce demand and reduce increases in pay. (After all, it’s all the consumer’s fault and not at all greedy corporations fixing the prices of eggs… which are pretty much used in every kitchen.)

        This year no toys for me- rather it was very much needed appliances.