https://www.cnn.com/2023/11/08/business/consumer-spending-us-economy-nightcap/index.html
There’s a conundrum that economists and political strategists have been chewing on for more than a year: The economy is good, but Americans say it’s lousy.
People are spending more because everything is substantially more expensive, you obtuse peanuts. People are dipping into their savings because they're running out of money.
I've still got like 80% of that stimulus check from a few years ago. Interest alone kept me going for quite a while.
How could it not?
You buy one 20 pound bag of rice and one 20 pound bag of beans and then canning supplies and you sell limited edition holiday dried and rice bean mixes. When you sell out, you buy 40 poinds of each.
Within 5 generations you have now become the rice and bean king of New Hampshire and have only spent $40 of your initial stimulus seed fund.
Two things this article doesn't consider:
people who are upset often buy things to make themselves feel better, even if they know they shouldn't.
with the rate prices have been rising by for a while, some might feel that it makes sense to spend now before products become me even more unaffordable.
We just redid the kitchen and put new flooring in. We've had the money but the prices of shit hasnt come down much. I finally got sick of listening to it (my wife) and puked the trigger. Your #2 is exactly why.
Except our current economy excludes the average American from home or vehicle ownership. So, we should probably be loudly demanding change.
And if people started speeding less, we would have wave of articles screaming that the economic end times were upon us
People have jobs but not enough to get major quality of life things like nice car or their own home and getting those things seem out of reach so they are spending on what makes them forget how depressing it is they can't have those things.
I think it's because lots of people might be in better place financially but still fucked overall. Especially when your factor in student loans which are basically going to be there wether I save for them or not.
I know that since covid I've been willing to spend to do fun things. What's the point of saving when it removes all joy from my life.
is the just 'profits are up' because they artificially doubled the priced of everything, and then some of us got a mild pay bump. yay. thats not 'spending like its great'. thats still 'spending to fucking get by'
Ok…
What income bracket is spending the most?
They also blew right past inflation without really explaining how much of the extra “spending” was due to the rise in costs across the board, everything from streaming video to groceries to cars have taken a big jump in cost.
I’m not spending more because I think the economy is great, I’m spending more because everything costs more and corporations are quite happy to keep jacking up prices for their massive profits.
This is the best summary I could come up with:
In a CNN poll released Tuesday night, 72% of all Americans say things in the country today are going badly, and 66% said the economy will be “extremely important” when deciding who to vote for next year.
But just 2% of voters say the economy is excellent, according to a separate New York Times-Siena College poll released earlier this week.
Folks don’t tend to shell out thousands on Taylor Swift tickets and steak dinners and vacations when they’re worried about where their next paycheck is coming from.
Of course, to pay for it all, Americans are dipping into some dangerous places — something you don’t typically do unless 1) you’re desperate, or 2) the labor market is booming and you feel like your job is secure.
Your morning cup of coffee still costs 60 cents more than it did before the pandemic, and there’s no incentive for Starbucks (or wherever) to bring prices down now that they know you’re willing to pay for it.
It now takes nearly 41% of the median household’s monthly income to cover the principal and interest payment on a median-priced home.
The original article contains 622 words, the summary contains 184 words. Saved 70%. I'm a bot and I'm open source!
I used to think I was healthy middle class. Then my dog got sick and even pet bills maxed my credit cards and has me paycheck to paycheck.
I was at a Gamestop recently to turn in some old games, and five people ahead of me (and at least 30 years younger) were all in line to buy new PS5s. I'm not judging them but, they were so young and as someone twice their age, I wonder how they afford it. I couldn't and I'm pretty well off financialy now. It's not my job to go on a boomer rant about it - but it's true that people are in some ways overspending more now (in my view).
Recently at work a woman complained she had spent bus fare only to show up our hospital and be told her appointment was the next day. She was moaning about how she had to spend money for another bus fare back again - while pulling out the latest brand new iphone and headbuds from her Gucci hand bag (i'm not kidding).
People complain about the economy partly because they're conditioned to think of any non-discretionary spending as a pain in the ass. It's always been this way. I'm 60 now and I don't remember a time when the economy was better than today - but I do remember gas lines in the 70s and how bad the economy was back then. A new game system would have been out of the question for families back then, even if such things existed then.
You're making a lot of assumptions. People can go without many things you may think are basic.
Those 30yo people buying PS5s may be living with their parents because they can't begin to afford their own place. Maybe they have 5 roommates who all pooled their savings for 6 months to buy it together. Maybe they simply don't have a car.
There's also the obvious selection bias of being in a Game Stop. You won't see all the people who can't afford a game console shopping there.
To me it's quite staggering that someone who considers themselves "Well Off" can't afford an occasional $500 expense. That's generally considered "Living Paycheck to Paycheck". I can only assume you're overspending in some ways.
Right and additionally I wonder how this person knew that the lady he mentioned had the “latest” iPhone and that her “Gucci” bag wasn’t a knock off. And perhaps she was able to afford these things because she doesn’t have a car note - does that revoke her right to complain about wasted money?
A knockoff, or maybe even a present.
It's posts like that one that reek of ulterior motives and unrecognized privilege.
OK so I have privilege - you seem to think that means I should not post or have any right to talk about what I've observed. I happen to own shares in Gucci and I know a knockoff from an original. You don't have to persuade yourself that I must be delusional to somehow justify your unwillingness to accept that I might be reporting on a true incident.
Don't put words into my mouth and then get pissy because you don't like them. Those are your words, not mine. You're making yourself into a victim.
However I don't for one second believe you got close enough to this stranger to evaluate whether her bag was real or fake ("I own shares in Gucci so I know a knockoff from an original" - best joke I've heard all week!). And you still have no way to know whether that bag was a present, or bought second hand, or anything else.
You could have said something like, "Oh, y'all are right, I let my privilege blind me and I probably shouldn't have judged that stranger so quickly, because everyone has their own unique situation." But instead, you're just defending your initial prejudice, doubling down on it with "I own shares in Gucci!"
It's a bad look. You should reevaluate your stance.
I'm this woman's physician when she comes in, I'm close enough to her to see the hair on her warts. Just because you're immature and unwilling to see another person's point of view doesn't validate your pissy point of view. And you know just where you can shove it as far as I'm concerned.
Someone calls out you for not seeing past your privilege and you respond with childish name calling then tell them to shove it.
You've shown what kind of person you are and how far your discussion capabilities go.
I know it's the latest iPhone because I've seen the updated newest models online. And it wasn't a gucci knockoff. I know. And if she was able to afford these things, then great - I have no problem, I'm just making a point. There's no need to be hostile about responding.
I’ll give you that you may possibly recognize the new iPhone from the near identical previous model. But I do not believe at all that you (or anyone) can confirm that bag was real unless you took it an examined it closely. And even if you could, why are you even paying attention to other people’s things like that? It implies that you are judging people based on an assuredly flawed narrative you’ve made up about them in your head. If you’re going to make assumptions, why not make it positive assumptions rather than assuming they make bad choices with their money?
From their appearance, I would not be surprised if they were living with their parents - they seem to all be wearing old shabby clothing. So you're right, people can and do go without many basic things, so where are they coming up with the $$$ for these PS5s? I consider myself pretty well off - that is, I have a trust fund and was bequeathed two large estates (private land) by my parents - so, I have more money than maybe any single person really needs. When I say I can't afford a PS5, what I mean is, I can't justify spending $500 for a game system when I have to buy clothes and groceries (especially groceries) and prioritize other expenses. I COULD afford to buy everyone in my neighborhood a PS5 - but seriously there are other things they really need more. But - to each his own, if some kid can get a PS5 and that's majorly important then I guess it's perfectly OK - I'm just amazed people of that age have that kind of discretionary money to spend.
So you're right, people can and do go without many basic things, so where are they coming up with the $$$ for these PS5s?
When they don't spend money on nice cloths and their own apartment, it frees up a lot of money that can then be used on things that are more important to them. Things like a PS5.
I can't justify spending $500 for a game system when I have to buy clothes and groceries (especially groceries) and prioritize other expenses. I COULD afford to buy everyone in my neighborhood a PS5 - but seriously there are other things they really need more.
Being able to afford something, is when you don't need to prioritize necessities over it. You have enough left over after buying your cloths and food.
Looks like that's where you're overspending.
Yes you got it right, I'm not overspending, young people are. But that's their perogative. I'm glad you agree with my viewpoint.
That's called willful ignorance. You're actively ignoring, or trying not to see another view point.