Welcome to the doom economy

In a world they see spiraling out of control, young people are choosing to spend mindlessly.

There’s doom scrolling. Doom porn. And now, doom spending.

A recent study conducted by Qualtrics on behalf of Intuit Credit Karma, defines “doom spending” as making purchases to cope with stress despite concerns about the economy and foreign affairs.

Not surprisingly, this phenomenon is most common among younger generations: 35% of Gen Z and 43% of millennials engage in mindless shopping as a way to soothe woes outside their control.

Worse, in a rather disconnected paradox, it seems doom spending has gone up at the same time Americans’ concerns about the economy have gone up. One would expect, given the financial bloodbath that looks to be imminent for the U.S., that people would be saving more, paying down debt, and otherwise working to stabilize their financial future.

But we live in bizarro world, and the study backs that up.

According to the study, nearly one third (32%) of Americans’ debt level has increased over the last six months with millennials and Gen X being the most likely to report increased debt levels, 38% and 35% respectively. Of those with debt (74%), a quarter estimate they currently hold more than $10,000 in debt… 

The untenable personal debt situation and reckless spending habit is perfectly mirrored by the financial ethos of the U.S. government. To quote the elder statesman of gold, Egon von Greyerz, we have reached the endgame:

The total mismanagement of the U.S. financial system has led to the dollar losing 98% of its value since Nixon closed the gold window in 1971. Most other currencies have followed the dollar down at varying speeds. 

But now comes the really exciting phase of this race to the bottom. We have only 2% left for the dollar-based currency system to go to ZERO. 

As Voltaire said in 1728, “Paper money always returns to its intrinsic value – ZERO.

Von Greyerz doesn’t talk about this inevitability to scare people, but to encourage them to use the last 2% ride to zero as time to put their finances in order. (Stay tuned for more of his sage advice in an upcoming podcast with Collapse Life host, Zahra Sethna.)

Even as the Titanic was sinking, the band played and the champagne flowed. Many were oblivious to the inky blackness of the cold North Atlantic that would soon swallow them.

The antidote to doom spending is doom saving — in a sense, preparing your personal financial lifeboat so when the unsinkable ship slips quickly below the water, you’ve got a chance to make it to shore.

It’s unlikely young people — so thoroughly disillusioned and disconnected by several generations from the desperation of the Great Depression — will heed such advice. But hey, at least puppies will get to live their best lives!

As Yale-educated TikToker and Gen Z financial coach Maria Melchor explains, “When older people ask me how younger people are affording nice things… I tell them it’s because we can’t afford anything else. Homeownership or starting a family is so out of reach, that we’re using that down-payment money or kid money… to give our dogs the most enriched puppyhood they can have.”

@firstgenliving#zillennial #dink problems

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The comments on her video give an interesting insight into the bleak mindset of Gen Z:

• “Future is not guaranteed, is crumbling before our eyes. Enjoying what we have while we can is the way to go.”

• “I am taking that trip to Europe baby 💃💐”

• “I'm increasingly certain the future holds a stark decrease in quality of life, I'm enjoying what I can now.”

• “I just tell myself I deserve to enjoy life [right now] since it's gonna go to hell pretty soon anyway. might as well have everything my heart desires before society takes that away too.”

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