1y ago

Consumers are so demoralized by inflation and high rates they've given up on saving for the American Dream and are spending money instead, economist says

United States | News & Politics @lemmy.ml

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1y ago

fortune.com /2024/05/19/economic-outlook-consumer-sentiment-inflation-high-rates-saving-american-dream-spending-labor-market/

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return2ozma @lemmy.world

1y ago

Consumers are so demoralized by inflation and high rates they've given up on saving for the American Dream and are spending money instead, economist says

fortune.com /2024/05/19/economic-outlook-consumer-sentiment-inflation-high-rates-saving-american-dream-spending-labor-market/

24 comments

Isn't the American dream intended to feed the capitalists in charge? This would fit right in with the plan.
It’s called the American Dream because you have to be asleep to believe it
- RIP George Carlin
Anyone who still believes in, never mind promotes the lie that is (and always has been) the "American dream" should be categorically ignored, if not publicly chastised.
- Exactly. The American dream is dead and anybody who believes otherwise is either an extreme optimist or delusional pick your choice.
  
  That, or they have a vested interest in continuing to perpetuate it and keep it "alive", like the owners of this publication clearly do.
Or there is a more reasonable explanation that low income people by default have to spend all of their money survive and maybe then some more.
- especially when things like food are the things going up. Just noticed this weekend that four things of tortillas was the same price as pair of frying pans.
What dream? This place has been nothing but one crisis to the next since I fucken became cognizant.
Paywall removed https://archive.is/IyuC2
Stagflation is the name and losing purchasing power is the game.
Replacing rapidly depreciating cash with something tangible might not be the worst idea. But, wasting money on stupid stuff you can't resell won't do anybody any good.
American dream has always been nothing more than a scam.
Don't spend. That is what they want. Spending is just transferring the money into the pockets of the greedy.
- A lot of younger people are maxing out credit cards and Buy Now Pay Later money lenders and then not paying it back.
  
  Yeah but that only works for about a month. Then they are toast.
Nah. I, for one, actually have a running list of things I'm refraining from buying because I'm saving up for a ten thousand dollar thing that I urgently need.
ironic given the idea behind increased interest rates is to encourage saving.
- Not really. It's to give an incentive to keep using the currency. Without this a lot of people would short the US dollar
  
  way I always heard it is to fight inflation they increase interest which is supposed to encourage people to save the money rather than spend it thus lowering inflationary pressures in addition to interest capturing dollars that become unavailable for purchasing.
Use it or lose it.
What's the point of saving when real inflation rate is higher than the interest banks apply to saving accounts? Or even average investment account interest rates? Saving now only makes sense in short term, for things you know you're going to need and can save up for in less than a year—home appliances, phones, laptops, small home improvements etc—and even then leasing or credit card may make more sense if prices continue to rise.
And that is assuming you have money left over after paying for necessities in the first place... It's not as if you can pay for eg renovation of your bathroom after a year of being able to set aside just 30 or 50€, even if you don't have an emergency expense taking you back to square 1.
This essay is from 2021 but things haven't got better since:
https://evonomics.com/the-truth-about-inflation-why-milton-friedman-was-wrong-again/
I can understand why they are doing it. However, I would advise doing it correctly. Don't put yourself in financial stress. Just to spend money. But if you spend money now, then you have things that will actually be worth something. And you can pay it off with inflated money later. So you get the best end of both deals. As an example, if I wanted to, I could borrow $5,000 right now because the payment on a $5,000 loan would be $100 and I can easily afford that because I have a budget and know where my money is going. So I could take that $5,000 loan and buy gold with it, thereby keeping an asset that holds its value and doesn't inflate away and pay the loan back with increasingly worthless fiat currency.
- Buying and selling gold has a large transaction and maintance costs... What is u smoking bro.
  
  as an example
  What r u smoking

24 comments