10 Reasons Why Americans Are Spending Crazy Despite High Inflation

In the last months, Americans have gone on a seemingly endless spending spree while the Federal Reserve has raised interest rates to higher levels than expected. These actions initially baffled users on a prominent Internet forum, but the conversation revealed some reasons for this trend.

10 Reasons Why Americans Are Spending Crazy

Don’t Spend On Big Purchases An interesting theory is that since the country’s interest rates are so high, no one wants to make big purchases, but they feel safe enough to spend much money on smaller items. These items add up over time and appall those watching.

Inflation Is Stealing Your Money When inflation rises, there is a perception that the value of your money is lost. Because the prices of goods are rising, the money you have, particularly in savings, loses its purchasing power. Therefore that money that you have grows more worthless as inflation increases.

The Pandemic Changed Everything Simply stated, people don’t care anymore. After three years of the pandemic, they must do whatever they want and gratify their immediate desires. They are still determining if there will be a tomorrow, so why save when that’s not guaranteed? One commenter said, “People believe there is no future anymore. I have friends that act like every meal could be their last.”

Emotional Spending A commenter created this idea: people aren’t thinking with their heads. They aren’t reasoning or thinking at all. They are acting emotionally in buying all this stuff. They want to feel good, and purchasing things makes them happy. They believe the world frightens them, and they need to feel good. They aren’t used to dealing with adversity, so they attempt to buy the comfort they don’t have.

YOLO Specifically, a commenter questioned what the statistics were regarding the people who were spending the most money. They guessed that Gen Z and Millennials would be the top spenders. They thought it would be the 20 and 30-year-olds who felt cheated out of two years of their lives during the pandemic and might think that things like home ownership were not for them.

Pause During the worst part of the pandemic’s economic crunch, our government paused student loan payments, and many people might have forgotten about that. However, this may have given some of the more unwise former students a way to spend more money.

Swipe Up To Read More

Read More

10 Greatest Single Movie Scenes Ever Filmed

10 Honest Insights on Rich Dad Poor Dad Being a Financial Classic