"This positive spending is not a reflection of some sort of internalized secret sense of confidence that consumers have."
  • thejevans@lemmy.ml
    ·
    7 months ago

    If I can't save for retirement, I might as well have a nice bike and a nice gaming PC.

  • Maoo [none/use name]
    ·
    7 months ago

    A high inflation regime promotes taking on debt as inflation makes it cheaper to pay off. That debt will get spent. If hyperinflation is threatened, buying inflation hedges is the "smart" move - real estate, gold, foreign assets. This similarly applies to simply not holding on to savings, as inflation devalues all money that you save at a faster rate than durable goods.

    This is, literally, basic economics. And none of it is mentioned in the article.

    • AcidLeaves [they/them, he/him]
      ·
      7 months ago

      not really that simple tbh. stock market is having insane performances despite high inflation and the USD relative to other major currencies have also been gaining, not losing despite the high inflation because it's not the currency getting weaker it's stupid trade war shit and price gouging

      • Maoo [none/use name]
        ·
        7 months ago

        Inflation is just rising costs. It includes price gauging and having to pay tariffs.

  • davel [he/him]@lemmy.ml
    ·
    7 months ago

    If I were in the average millennials’ or gen-zs’ shoes, I might be spending it on drugs.

    • https://en.wikipedia.org/wiki/Disease_of_despair
    • https://en.wikipedia.org/wiki/Social_murder