Why Are Americans Spending So Much ?
613 sats \ 26 comments \ @0xbitcoiner 19 May econ
They say the economy is bad, but they’re spending like it’s booming.
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Instead, Americans just kept buying more, even accounting for price increases and beyond growth in their disposable income. Their spending helped drive US economic growth in 2023 and remained high in the first months of this year. In March, consumer spending increased by 0.8 percent, exceeding expectations from financial analysts.
There is a sign that Americans’ shopping spree might be finally coming to an end: Retail spending stayed the same in April as compared to the previous month, falling short of analyst projections for growth.
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Who is driving high spending?
Two things are simultaneously true: People feel really negatively about the economy, and that’s not stopping them from spending. In May, the University of Michigan recorded its lowest consumer sentiment reading in six months — an index of 67.4 out of 100 — as part of its long-running survey.
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... read more at vox.com
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83 sats \ 1 reply \ @TNStacker 19 May
Inflation drive spending of fiat. So does loose credit. Plus, American economy is mostly consumer spending. The whole system incintivizes spending.
Stack Sats and stay humble.
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21 sats \ 0 replies \ @Satosora 19 May
American values have eroded.
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136 sats \ 0 replies \ @vigilantcitizen 19 May
There's the usual suspects of inflation, debt being carried on higher interest rates, energy prices and all of the rest. But I would also suggest the idea of "revenge spending", which you can see in some of the data, is a fairly significant part. As it turns out, if you take a bunch of people with dubious enough time preferences, have them in a zero-rate environment where people can push present consumption at no cost, and then lock everybody down and turn the rates back up after explosive money supply growth, some of those people will want to get out get out at any rate.
One of the largest consumption bubbles/pops? Just look at this line from the PCE from net foreign travel and expenditures abroad by U.S. residents. Crazy growth post-COVID.
https://fred.stlouisfed.org/series/DNFTRC1A027NBEA
Something to think about is that as inflation hits core regions (Europe-North America) and the rest of the world, it'll become more systematically attractive to go abroad (and perhaps settle there). First, there will likely be many states with inflation running hotter than the American dollar, which is an advantage if you derive USD/BTC income. Second, you will be able to buy less with your USD in the United States and adjacent regions. I think this will also be a subtle, probably smaller but still present, part of the demand equation for BTC - which should retain and grow its value vs. fiats and also allow for easier jumps between borders.
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126 sats \ 15 replies \ @Undisciplined 19 May
Look at what’s up vs what’s down. It’s mostly essentials that are up and luxuries that are down.
That’s inflation at work and it’s why Americans are carrying record consumer debt.
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21 sats \ 14 replies \ @Satosora 19 May
I would have thought gas and fuel would be up.
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10 sats \ 13 replies \ @Undisciplined 19 May
That would generally fit with the broader trend, but you have to remember that oil and gas prices skyrocketed after Russia invaded Ukraine and stayed high with the turmoil in the Middle East.
Biden emptied the Strategic Petroleum Reserves, in order to bring down oil prices heading into his reelection campaign. I think that's the main reason for the seemingly odd price movement there.
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21 sats \ 12 replies \ @Satosora 19 May
The price for gasoline hasnt really moved much. I thought it would go down a bit more, but it remains around the same. How much left is in the reserve?
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10 sats \ 11 replies \ @Undisciplined 19 May
I had heard that it was basically drained. He's supposed to refill it, but I don't see that happening until after the election.
As far as gas prices at the pump, it seems like they go up a lot faster than they come back down, but that's just my experience.
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21 sats \ 10 replies \ @Satosora 19 May
Yeah, I pay about 4$ for premium gas now. Total waste of money, I think.
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10 sats \ 9 replies \ @Undisciplined 19 May
Have you tried dollar-cost averaging your gas?
It saves a little money, over the long-term.
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21 sats \ 8 replies \ @Satosora 20 May
No, I should probably just use the cheap gas instead. But I dont use that much gas to begin with, so its not the end of the world. I drive an older car, the ethanol gas sucks. You can hear and feel the difference.
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31 sats \ 0 replies \ @TheBTCManual 19 May
Someones spending is another persons salary, so someone has to keep doing it to keep businesses alive and drive economic activity
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26 sats \ 1 reply \ @Cje95 19 May
Cause the world is damn expensive... How the hell is WHOLE FOODS the same price as Harris Teeter, Giant, etc. It's absolutely absurd!
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0 sats \ 0 replies \ @Satosora 19 May
Whole Foods, what a scam.
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0 sats \ 0 replies \ @pow 20 May
Why Are Americans Spending So Much ?
  • Medias making people feel scared
  • Advertisements making people feel insecure
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0 sats \ 0 replies \ @SatsMate 20 May
I think We always want the nicest car, the best house location & cool vacations Not many of us are willing to sacrifice an older car, a worse house location, and mediocre travel in the world of Instagram.
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0 sats \ 0 replies \ @Coinsreporter 19 May
It's normal 'cause of inflation. It's not they are spending but they are actually forced to spend more.
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0 sats \ 0 replies \ @Satosora 19 May
People know that in times of inflation, you need to buy goods and services right away.
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