With the aftermath of the recent elections, many Americans are grappling with unsettling feelings about the economy and political climate. This unease has manifested itself through what some are dubbing "doom spending," a trend characterized by individuals, particularly younger generations, spending money as a means of coping with anxiety driven by political and economic distress.
Reports indicate a marked increase in this behavior, with approximately 27% of U.S. shoppers engaging in doom spending. This impulse appears to be heightened among younger demographics, with 39% of millennials and 37% of Generation Z admitting to indulging in this trend, which they often liken to retail therapy. According to Kimberly Palmer, a personal finance expert at NerdWallet, "Doom spending describes the impulse to spend money on things to self-soothe against anxiety and stress," highlighting the psychological underpinnings of this phenomenon.
To understand how doom spending has taken hold, we first have to look at the backdrop of political tension and economic uncertainty. For many, the prospect of Donald Trump returning to the White House has amplified fears about the future, leading to various forms of emotional spending. From splurging on luxury items to indulging in takeout meals, many consumers find solace momentarily but face the looming threat of financial repercussions.
CNN correspondent Vanessa Yurkevich shed light on this trend, stating, "If you‘re not feeling good about the economy, you feel like maybe the home purchase you were considering is within reach, only to realize it’s not. People often resort to spending as a way to cope with those feelings." This reflects the sentiment of many individuals facing the dual pressures of economic hardship coupled with political anxiety.
Interestingly, the uptick of doom spending is not limited to online shopping sprees. Reports have surfaced showing people purchasing everything from Christmas decorations to skincare products, just to alleviate the feelings set off by the election results. For example, Celeste Acevedo, who shared her Sephora purchases on TikTok, voiced the need for retail therapy as she navigated her anxiety post-election, stating, "This was all just to cope." This sentiment resonates with countless others who find themselves gravitating toward shopping as salvation.
Yet, experts warn against slipping too far down this financial rabbit hole. With more than half of Americans carrying some form of debt and credit card balances topping $1.14 trillion by mid-2024, the worries surrounding doom spending are not unfounded. Anthony Miyazaki, marketing professor at Florida International University, pointed out the potential danger of such spending habits leading to worse financial conditions, stressing, "These consumers rationalize their expenditures by saying if they don’t spend now, they might not be able to later due to uncertain economic conditions." This cyclical trend raises concerns about the sustainability of such spending habits.
Critics of doom spending, like financial advocate Aaliyah Kissick, argue this trend stems from broader social issues, particularly the addictive nature of social media and targeted ads. She elaborates, "Many individuals are growing addicted to platforms like TikTok, leading to impulsive purchases tied heavily to their emotional state." This digital engagement can amplify feelings of empowerment through spending but can easily lead to regret when the bills come due.
Another contributing factor to this trend is the upcoming holiday season, where shoppers are bombarded with advertisements and promotions encouraging them to buy, buy, buy. Hannah Grichanik, another financial expert, warned about the long-term impact doom spending can have on financial goals. She stated, "Impulse buying deviates from personal budgeting and can lead many to fall behind on their financial goals and responsibilities, especially for young Americans who already face significant debt increases."
To mitigate the potential consequences of doom spending, experts encourage self-awareness and healthier coping mechanisms. Suggestions often include stepping back from social media, engaging with friends and family, or taking part in low-cost activities like outdoor walks or hobbies. Palmer suggests, "Instead of turning to doom spending, seek out meaningful interactions—grab coffee, go for walks, or reconnect with nature to boost your mood without spending money. These alternatives can help curb impulse purchases."
Given the current climate, the habits of doom spending shine as both a coping mechanism and risk factor. While it offers temporary alleviation of anxiety for many, the long-term effects could hinder financial stability and lead to increased debt if not managed properly. With the elections stirring emotions to boiling points, America watches closely as these patterns evolve, hoping for balance between spending and saving as society navigates through uncertain waters.
