Understanding Doom Spending: How Economic Pessimism Drives Consumer Behavior
Does The Gen Z "Doom Spending" Trend Explain Why Retail Sales Haven't Collapsed Yet? đź”—
Retail sales in the U.S. have remained surprisingly strong despite growing concerns about the economy, attributed in part to a phenomenon known as "doom spending," particularly among younger generations like Gen Z and Millennials. This trend involves consumers shopping more during times of economic pessimism as a form of self-soothing, leading to increased personal debt despite rising inflation and interest rates. Surveys indicate that a significant portion of these consumers are not preparing for future financial challenges, and this behavior contributes to a distorted view of economic recovery, masking the ongoing decline of the economy.
What is "doom spending"?
Doom spending refers to the behavior of consumers who shop excessively to cope with feelings of pessimism about the economy and their future.
Why are retail sales still strong despite economic concerns?
Retail sales have remained strong due to the rise of doom spending among consumers, particularly younger generations, who continue to spend despite high inflation and rising debt.
What are the implications of the current consumer debt levels in the U.S.?
Current consumer debt levels are at record highs, indicating that many individuals are accumulating debt under difficult financial conditions, which could lead to increased stress and potential economic instability.