"This positive spending is not a reflection of some sort of internalized secret sense of confidence that consumers have."

An economist offered an explanation for a paradox that has emerged in recent data showing that spending has remained robust even as consumers report feeling pessimistic.

Joanne Hsu, who is the director of the University of Michigan’s consumer sentiment survey, told CNBC on Friday that she thinks Americans have abandoned plans to save money as they see their financial goals look less attainable and are spending money instead.

“This positive spending is not a reflection of some sort of internalized secret sense of confidence that consumers have,” he explained. “And instead my interpretation is that consumers see that a lot of aspirational goals that we talk about as part of the American Dream—homeownership, paying for college, paying for college for your kids, having a comfortable retirement—with high prices and high interest rates right now, those aspirational goals just feel increasingly out of reach.”

  • EldritchFeminity@lemmy.blahaj.zoneEnglish
    10·
    7 months ago

    Yeah, every single time I see one of these articles, I’m just like, “Where have you been since 2008?” The “American Dream” has been dead a long time.

    It’s literally why “adult” became a thing you do instead of something you are in the 2010s. Because the traditional hallmarks of middle class suburban lifestyle (the house with a white picket fence, 2.5 kids and a dog or cat) have increasingly become an impossible pipe dream for the Millennial and younger generations. When the traditional markers of the transition to adulthood become out of reach for the majority of people, what does adulthood even look like anymore.

    There’s a very well researched video that goes over it that I stumbled across one day called the perpetual infantilisation of millennial women. It focuses on Millennial women (obviously), but goes into detail about how “adulting” became a word in the popular lexicon and how increasingly untenable a life like previous generations is for Millennials and Gen Z despite being the most well educated generation in history.