No, really
High prices? Like food, energy, water, clothes? From the link
You would think, with prices as high as they are, that Americans would have tempered their enthusiasm for shopping of late; that they would have pulled back spending on luxury items; that they would have sought out budget and basic options, bought smaller packages, fewer things.
This is not what has happened. Consumer spending rose 0.2 percent, after accounting for higher prices, in October, the most recent month for which the government has data. Online shopping jumped 7.8 percent over the Thanksgiving long weekend, more than analysts had anticipated. The sales of new cars, dishwashers, cruise vacations, jewelry—all things people tend to give up when they are watching their budget—remain strong. Consultants keep anticipating a recession precipitated by the “death of the consumer.” Thus far, the consumer is staying alive.
People hate inflation, just not enough to spend less: This is one of the central tensions of today’s economy, in which things are going great yet everyone is miserable. And in some ways, Americans have nobody to blame but themselves.
People went without for years if they were able to. In some cases they had to, because goods were scarce. People are starting to see sales on products now, because availability is up. There actually are some good deals. But, the core products such as food and energy are way up.
Sticker shock is real. And in surveys, people say that they are trading down because of cost pressures. But in fact they are spending more than they ever have, even after accounting for higher prices. They’re spending not just on the necessities, but on fun stuff—amusement parks, UberEats.
How dare you peasants want to have a good life! Which is not a surprising hottake, since the author, Annie Lowery, was raised with a silver spoon and graduated from Harvard, worked a bunch of cushy media jobs, and is worth millions. As is her husband Ezra Klein.
There is actually some debate on that phrase. Some say it meant “if the good bread (French citizens really, really, really like their good bread) isn’t available, make cake with the lower quality wheat”, because there was a massive wheat issue, partly due to the cooler temperatures from the Little Ice Age. Or maybe it was said as an Elitist phrase. The French nobles were trying to get the peasants to eat potatoes, which were considered to be food that not even the lowest of the low would eat, but, they were available so people didn’t starve. Regardless, this type of attitude from Elites at The Atlantic really doesn’t help. But, they should keep it up, because the GOP will do what they can to lose in 2024.
Read: Good News: Inflation Is All Your Fault Per Spoiled Elitist »