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.
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 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.
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.