Why does it feel like people have unlimited budgets, even with crazy inflation?

[Anonymous]

Anonymous wrote:I just went to the bakery and got a single serve cherry crumble, a salted caramel bar and a croissant. It was $24.

I am panicking about the future.

Cherry crumble is super simple to make yourself for less than $10 you’d have enough to share. Same with salted caramel bar, probably not difficult to make and freeze. Buy the croissants, they’re a PITA, don’t freeze well or keep very long anyways.

[Anonymous]

I know I just wanted to sample a new neighborhood bakery. But $24.

[Anonymous]

Credit card debt levels and defaults are at record levels OP, that's how.

[Anonymous]

Anonymous wrote:Credit card debt levels and defaults are at record levels OP, that's how.

Rich people aren’t living in credit cards. That’s just non rich people trying to keep up.

[Anonymous]

Anonymous wrote:I know I just wanted to sample a new neighborhood bakery. But $24.

Did that include tip?

[Anonymous]

Because actual really rich people have tons of money.

Those of us who are merely middle class are cutting back, but I don't talk about it with others, because I know how people here are and will be judged. We've stopped going out to eat, and put a hold on any purchases. I think a lot of middle class people are living in credit or taking cash out of their house which has gone up in price.

[Anonymous]

Anonymous wrote:I know I just wanted to sample a new neighborhood bakery. But $24.

Buying from a bakery is optional.

[Anonymous]

Leaving aside the very well off who may or may not feel the pinch of inflation, I think the phenomenon you describe, OP, is apparent in the economic data and a source of some mystery and consternation for economists. Consumers spending has been far more resistant to inflation than economists expected. As someone else said, credit card debt is up, so that explains some of it. Also, during Covid savings increased substantially as people got breaks on paying rents or utilities, received stimulus money, etc. so there has been some tail of spending down savings, accruing credit card debt before limits hit. Also, as someone said, many of the job moves over the past few years were into better paying jobs, which allows more spending at a sustained level. Much of the missing workforce continues to be the lowest paid sector, which is quickest to change spending when conditions change.

[Anonymous]

Anonymous wrote:Leaving aside the very well off who may or may not feel the pinch of inflation, I think the phenomenon you describe, OP, is apparent in the economic data and a source of some mystery and consternation for economists. Consumers spending has been far more resistant to inflation than economists expected. As someone else said, credit card debt is up, so that explains some of it. Also, during Covid savings increased substantially as people got breaks on paying rents or utilities, received stimulus money, etc. so there has been some tail of spending down savings, accruing credit card debt before limits hit. Also, as someone said, many of the job moves over the past few years were into better paying jobs, which allows more spending at a sustained level. Much of the missing workforce continues to be the lowest paid sector, which is quickest to change spending when conditions change.

I think part of it is also that many of us saw how short life can be up close- spend the money, have the fun.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I know I just wanted to sample a new neighborhood bakery. But $24.

Did that include tip?

No. I did not tip for counter service.

[Anonymous]

Anonymous wrote:Because actual really rich people have tons of money.

Those of us who are merely middle class are cutting back, but I don't talk about it with others, because I know how people here are and will be judged. We've stopped going out to eat, and put a hold on any purchases. I think a lot of middle class people are living in credit or taking cash out of their house which has gone up in price.

Take a look at some of the retail websites currently having 50% off sales. A lot of people are cutting back extras and expenditures.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I know I just wanted to sample a new neighborhood bakery. But $24.

Buying from a bakery is optional.

Of course it’s optional but we are not talking about Levain here. This was just a local family owned bakery the kind where people buy bread and birthday cakes or used to. It hasn’t historically been a luxury item, but I guess they use a lot of eggs.

[Anonymous]

Anonymous wrote:Leaving aside the very well off who may or may not feel the pinch of inflation, I think the phenomenon you describe, OP, is apparent in the economic data and a source of some mystery and consternation for economists. Consumers spending has been far more resistant to inflation than economists expected. As someone else said, credit card debt is up, so that explains some of it. Also, during Covid savings increased substantially as people got breaks on paying rents or utilities, received stimulus money, etc. so there has been some tail of spending down savings, accruing credit card debt before limits hit. Also, as someone said, many of the job moves over the past few years were into better paying jobs, which allows more spending at a sustained level. Much of the missing workforce continues to be the lowest paid sector, which is quickest to change spending when conditions change.

Also student loan payment pause. Wait until these pick up again in august/September and people already living on credit cards will have issues. And so will retail.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Credit card debt levels and defaults are at record levels OP, that's how.

Rich people aren’t living in credit cards. That’s just non rich people trying to keep up.

DP but that’s *literally* the point. No one claimed the people spending are rich. “Why do all these people have seemingly unlimited access to goods and services?” Cuz they have credit cards, not because they’re rich.

[Anonymous]

When you have a 2016 PITI, inflation doesn’t pinch that bad. Especially if you stayed climbing the corporate ladder.