4 ms·
If Debt Is Funding Most Spending, Can We Still Call the Consumer "Strong"?
- d_e_solomon 10mo agoWe keep seeing headlines framing higher retail spending as a sign of economic resilience. But the mechanics behind that spending look very different today: Unit volumes are declining BNPL is growing in essential categories Credit card rollover rates are rising Savings buffers are shrinking If the marginal dollar of “growth” is now debt-financed, is the metric still meaningful? I’m curious how others see it. Is consumer spending still a valid indicator of economic strength, or should we be treating it as an obligation metric rather than a confidence metric?