Increasing retail sales have been constantly held up over the past couple of years by the establishment media and Democrats as a sign that “Bidenomics” is actually working. Given that almost every other statistical indicator used to support Bidenomics has proven false, it’s fair to suspect that the retail data is also rigged. But what if it’s not?
There is of course the problem of inflation skewing retail numbers to the upside. You rarely hear mainstream analysts mention that little issue when they swoon over America’s “retail rebound.” CNN recently lauded the data as a “sales surge” and a sign of the US economy’s strength.
However, there is another little known social factor beyond inflation that might help explain why retail spending hasn’t completely collapsed despite most major indicators showing the US entering a recession with shades of stagflation.
Why did retail data print so strong over the summer when manufacturing plunged and the July jobs report triggered the Sahm Rule, which is now used by central banks as an early sign of an impending recession? Perhaps because a certain subset of consumers are engaging in a counterintuitive trend called “Doom Spending.”
According to psychologists, doom spending is when a person mindlessly shops to self-soothe because they feel pessimistic about the economy and their future. The practice is apparently a growing habit among younger generations in today’s stagflationary climate. Economic theory has long held that high inflation and high interest rates will force consumers to save instead of spend, thereby reducing demand and lowering prices over time. Except this is not happening.
A whopping 96% if Americans are worried about today’s economy. Over 27% of respondents (most of them Gen Z and Millennials) to a recent survey conducted by Qualtrics and commissioned by Intuit Credit Karma admitted to “doom spending,” and 32% have taken on more debt in the last six months. US consumer debt stats reveal the true nature of this disastrous trend.
New York Fed research shows US credit card debt at all time highs; a record $1.14 trillion. Total US household debt has hit record highs, holding at $17.3 trillion, and rose by 4.3% from Q2 2023 to Q2 2024.
Keep in mind, this debt is accumulating under much higher interest rates than before the pandemic, and the money is buying less because of inflation. The mindset makes no sense. It’s actually digging Americans further into poverty with inevitably more stress and depression attached, but that’s probably why they call it “doom spending.”
The US economy is far from recovery. In fact, it’s continuous decline is being misrepresented as a “rebound” partly because of the bizarre habits of a contingent of American consumers.
Doom spending helps to explain a number of inconsistencies in current retail data and also presents a disturbing reality – That almost 30% of the US consumer population has no plans to prepare for the future and is incapable of mentally adapting to sour financial conditions. In other words, they refuse to take responsibility for their own personal survival.
It’s a sure bet that this is the same 30% of the population who avidly defend the progressive socialist policies promoted by Joe Biden and Kamala Harris. They likely hope (or expect) they will be bailed out by government spending in the near future. But what if that doesn’t happen? Will they roll over and starve quietly, or, will they riot in the streets out of spite?
Tyler Durden
Wed, 09/25/2024 – 22:10
