Perception is everything. Most Americans feel like they are struggling yet are spending money as if they are thriving. Should we assume that those who say they are living paycheck to paycheck are charging things they can’t afford? Not necessarily. According to U.S. Bank, consumers are being prudent in their spending to avoid financial difficulty, so it’s safe to assume that people living above their means is not the primary cause of increased consumer spending. And contrary to what the media is claiming, the increase in consumer spending cannot be the result of one pop star’s world tour.
Taylor Swift has earned well-deserved credit for creating jobs and boosting the economy of every city she visited. Her Eras Tour began in November of 2022 and was seen by 10.1 million people in 53 cities around the world. People of all walks of life splurged on concert tickets, travel, hotels, and meals to see Taylor perform in person. Yet, during the Black Friday holiday weekend the resulting $41 billion in online sales had nothing to do with Taylor Swift. Her popularity boosted in-store sales at Target locations only.
Even the Americans who feel like they are struggling and living paycheck to paycheck are spending money because they can, and because retailers are offering better deals, and the deals are more readily available. Sales used to be in-store only, but now consumers can take advantage of deals anytime using their mobile device, laptop, tablet, desktop, or in person at brick-and-mortar locations. Since Covid, the perception of the state of the economy has been negative no matter the strives we’ve made and regardless of interest rates.U.S. Department of Commerce data shows a strong economy and the lowest unemployment in 50 years. Jobs are paying more now than ever before but the price of rent and utilities has increased. People feel better when they have money in the bank and when the prices of staples like eggs and milk are familiar and deemed affordable. Since the pandemic, the price of almost everything has increased due to demand and supply chain issues, and not just here in the U.S., but if someone feels prices have to do with a bad economy there is no way to reason with them because perception is everything