Rachel Wolfe reporting on the consumer spending binge:
Consumers should be spending less by now.
Interest rates are up. Inflation remains high. Pandemic savings have shrunk. And the labor market is cooling.
Yet household spending, the primary driver of the nation’s economic growth, remains robust. Americans spent 5.8% more in August than a year earlier, well outstripping less than 4% inflation. And the experience economy boomed this summer, with Delta Air Lines reporting record revenue in the second quarter and Ticketmaster selling over 295 million event tickets in the first six months of 2023, up nearly 18% year-over-year. Economists and financial advisers say consumers putting short-term needs and goals above long-term ones is normal. Still, this moment is different, they say.
Not it isn’t. It’s just the latest self delusion to indulge in the American tradition of consumerism. I hope they enjoy their purses, trips and wild parties when they are broke and working at 70.