Over 50% of the U.S. population holds more than $1.1 trillion in credit card debt, and delinquencies are higher than before COVID-19. However, the results of the 2024 elections are prompting consumers to spend more.
The recent trend earned a viral title of, “Doom Spending.” It’s described as those looking to cope with the election loss of Kamala Harris. And it’s affecting younger voters.
“If you‘re not feeling the results of the presidential election, you may spend a little bit to try to take your mind off things,” said CNN reporter Vanessa Yurkevich. “It‘s that dopamine hit that you‘re looking for to start to feel good again. what we‘re seeing is that showing up in doom spending,”
A report described how a Wheaton College senior and her friend went on a shopping spree to alleviate the stress and anxiety caused by the upcoming 2024 election. Millennial and Gen Z shoppers have been sharing their experiences of “doom spending” on social media platforms like YouTube and TikTok.
In June of this year, an Axios Vibes survey done by the Harris Poll found Gen Z and millennial consumers were more likely to take the attitude of,” it is better to treat themselves now rather than hold off for a future “that feels like it could change at any moment.”
CNN reported that internet habits play a significant role in driving doom spending, especially for younger consumers than other age groups.
“After the election loss, experts predicted more younger Americans who were not happy with a Trump victory went and did more online shopping,” Florida Daily financial analyst Steve Beaman said. Beaman asserts that voters unhappy with the election results shouldn’t spend more money just to make themselves feel better.
Florida International University marketing professor Anthony Miyazaki said there was an uptick in doom spending in part due to “uncertainty both prior to and after the U.S. elections. Gen Z financial literacy advocate, Aaliyah Kissick said social media addiction and targeted advertising on platforms are the real culprits. real culprits.
