4 ms·

And why do people have the capacity to just "keep buying things"?

by jb12 3y ago

candiddevmike 3y ago
They don't, they're putting it on their credit cards: https://www.cbsnews.com/news/credit-card-debt-total-us-data-2023/ https://www.cbsnews.com/news/credit-card-debt-total-us-data-...
johntiger1 3y ago
Because we keep printing money, cycle and repeat, ad nauseam
dangoor 3y ago
Credit? https://www.lendingtree.com/credit-cards/credit-card-debt-statistics/ https://www.lendingtree.com/credit-cards/credit-card-debt-st...
- Consultant32452 3y ago
  Credit availability is largely a function of federal reserve policy.
  - neilwilson 3y ago
    Not at all. Credit availability is a function of creditworthiness of borrowers, which is largely a function of available collateral. All the Fed does is change the price. If I get charged more interest, I simply charge more in wages/profit to cover it. Which I can do because there is a tight labour market/product market.
whateverman23 3y ago
Saving less / taking money out of savings, more credit card debt (https://www.lendingtree.com/credit-cards/credit-card-debt-statistics/ https://www.lendingtree.com/credit-cards/credit-card-debt-st...), etc. Some things, people just have to buy. Can't stop buying food, paying rent, paying for your car, etc.
- kelipso 3y ago
  Rent, house prices, healthcare have skyrocketed way above inflation last few decades, people can't not buy these things. College prices too, if you're middle class you can't not buy this either. American economy has been putting the squeeze on these things for decades. Now we're going even lower on Maslow's hierarchy to food. Americans will keep paying though, there is no political energy or power in the population anymore.
  - _siis 3y ago
    Its because politician's have allowed the methods for receiving signals from the people they're supposed to be representating to be jammed. Look at social media, if there's a narrative that's unflattering someone will create a large number of bots and shout it down in a way that distorts reflected appraisal signals. You see the same on here with anything that mentions certain keywords like China, central planning, socialism, etc. Representatives already spend most of their time beholden to their donors after passing through the money filter, they may have sworn an oath but the most common form of incompetency is doing nothing, and worse if they're hopelessly corrupt.
Jochim 3y ago
Many don't. In the UK at least, retail volume is down but retail value has increased. https://www.ons.gov.uk/businessindustryandtrade/retailindustry/bulletins/retailsales/april2023#main-points https://www.ons.gov.uk/businessindustryandtrade/retailindust...

And why do people have the capacity to just "keep buying things"?

by jb12 3y ago

And why do people have the capacity to just "keep buying things"?

They don't, they're putting it on their credit cards: https://www.cbsnews.com/news/credit-card-debt-total-us-data-2023/ https://www.cbsnews.com/news/credit-card-debt-total-us-data-...

johntiger1 3y ago

Because we keep printing money, cycle and repeat, ad nauseam

dangoor 3y ago

Credit? https://www.lendingtree.com/credit-cards/credit-card-debt-statistics/ https://www.lendingtree.com/credit-cards/credit-card-debt-st...

Consultant32452 3y ago
Credit availability is largely a function of federal reserve policy.
- neilwilson 3y ago
  Not at all. Credit availability is a function of creditworthiness of borrowers, which is largely a function of available collateral. All the Fed does is change the price. If I get charged more interest, I simply charge more in wages/profit to cover it. Which I can do because there is a tight labour market/product market.

whateverman23 3y ago

Saving less / taking money out of savings, more credit card debt (https://www.lendingtree.com/credit-cards/credit-card-debt-statistics/ https://www.lendingtree.com/credit-cards/credit-card-debt-st...), etc. Some things, people just have to buy. Can't stop buying food, paying rent, paying for your car, etc.

kelipso 3y ago
Rent, house prices, healthcare have skyrocketed way above inflation last few decades, people can't not buy these things. College prices too, if you're middle class you can't not buy this either. American economy has been putting the squeeze on these things for decades. Now we're going even lower on Maslow's hierarchy to food. Americans will keep paying though, there is no political energy or power in the population anymore.
- _siis 3y ago
  Its because politician's have allowed the methods for receiving signals from the people they're supposed to be representating to be jammed. Look at social media, if there's a narrative that's unflattering someone will create a large number of bots and shout it down in a way that distorts reflected appraisal signals. You see the same on here with anything that mentions certain keywords like China, central planning, socialism, etc. Representatives already spend most of their time beholden to their donors after passing through the money filter, they may have sworn an oath but the most common form of incompetency is doing nothing, and worse if they're hopelessly corrupt.

Jochim 3y ago

Many don't. In the UK at least, retail volume is down but retail value has increased. https://www.ons.gov.uk/businessindustryandtrade/retailindustry/bulletins/retailsales/april2023#main-points https://www.ons.gov.uk/businessindustryandtrade/retailindust...