I think people know the money is losing value faster, they too afraid to risk it in the market, and big financial goals like a home are out of their grasp so why not just buy stuff that make you happy now, spend on experiences, eat lavishly at least you getting something for all your work today, or so I assume the reasoning is besides people have to spend, one mans spending is another mans income

Because they are still earning more.

they are immersed in a spiral of consumerism.

Its the culture man. Americans dont save money, they spend it.

It really is all Americans have. Consumerism has always been the hamster wheel that American shave decided to jump on. We spend to keep up with the Jones's. We like to have big hat no cattle.

I believe some portion is "revenge spending" and the life experience of being locked up during COVID-19. I always refer to travel spending, for example, on the uptick: https://www.travelpulse.com/news/destinations/us-travel-spending-of-1-2-trillion-on-par-with-pre-pandemic-levels

Consoomers only stop indulging when the unemployment rate rises.

GDP? Inflation? Yield curve? Consooomers don't give a fuck. They only care if the fear of being unemployed kicks back in. They barely remember this feeling from 16 years ago.

Edit: I know this because I remember myself being like that. By far not an extreme case. But I have felt this mindset before and it was terrifying.

We spend so much to numb the pain

Americans are the richest!! Lol..

Because the rich, who make up the bulk of the spending, keep getting richer. Averages don't mean much when asset wealth is so unevenly divided and endless money printing fuels asset price growth.