The Truth About Black Friday, Consumer Spending, and Economic Growth

[@DadSavesAmerica]

If you like what you see and want to stay up to date with Dad Saves America, please subscribe here on KZbin or over on Substack, where you can find weekly articles and the audio version of the podcast, with more to come in the near future! www.dadsavesamerica.com

[@lukeasacher]

Thank you John for your great stuff- with all due respect to the Chicago monetarists...Only Austrian Economics is Economics!

[@jaredfontaine2002]

You need to raise interest rates to crash the economy and increase savings

[@ianandersen265]

If spending more is better for the economy, why don't the Democrats encourage Americans spending less during Republican presidencies to try to crash the economy and make Republicans look bad, and vice versa?

[@jimleedy8029]

John, as always great common sense that is easy to consume. (sorry I couldn't help myself) I just have one minor criticism, not with the content but with the editing, it is too many snap zooms or zoom cuts or something where you are trying to make it more engaging. I get it, you can't just have a talking head, but you talking over other graphs, or other b-roll is great. Keep it up! This needs to be understood.

[@thebluelunarmonkey]

I save so much every Black Friday, by not buying anything.

[@circasurvive9891]

…huh, that's crazy. I'm assuming you also don't pay attention that day either?

[@frenchdreamer1986]

I make a fortune during Black Friday by taking videos and sharing them on TikTok.

[@MasterMalrubius]

As well as your self-respect.

[@Michaelno]

And then you spend the more money on the shit you coulda got on sale. 😂 smart people wait and buy sales when you need the item.

[@SK-hj8ss]

Sounds like something a white supremacist, hetero-normative cis white male who loves fascism and hates America would say.

[@cesaribarra1384]

Black Friday is not like this anymore. Black Friday is basically nonexistent due to online sales

[@theparodychannel7842]

Wat online sales? 20% off a 12 dollar item that was 10 bucks a week ago?

[@travelinman790]

It has died off quite a bit

[@barbs116]

Yes, that’s what I just said like Friday is not like that anymore. He’s showing us videos from the 90s.

[@Preeta1980]

Intro is very misleading.. that chaos is from the 90s and haven’t been seen for years

[@Skeletors_Closet]

Fighting over things we don’t need. That’s what decadence does to a society.

[@srichman]

What do you mean by "need"? As the comedian Myron Cohen had a character say, "All I need to do is die."

[@jurrell1986]

you havent seen a store on black friday in over a decade huh? worked retail for 12 years, no ones fighting on that day, hell no ones isnt going to get into an argument, most stores have spread their sales out over the course of the month, so whatever you want has been on sale for 20 plus days so you already got it by the time black friday has shown up, or you just want to go out as a tradition to see what the store is like on the "craziest retail day of the year" all bullshit as i mentioned. the only issue is stores are constantly understaffed on purpose to maximize profits, but other than that theres no fighting no screaming nothing just confused people as to why the product they showed up for was the same price 2 weeks ago *shrugs*

[@cgpcgp3239]

@@jurrell1986Yep. Plenty of KZbin video of empty stores and complaints about crappy deals not worth effort and scammy retailers. One video showed Black Friday tag was over a sale tag that had the same price.

[@turtleanton6539]

Yeeeah😮

[@johnjurmu5669]

Just hours after celebrating a holiday where you are meant to be thankful

[@MsJuliah1]

I am 70, and I am guessing I have added at least 2.5 years to my life by keeping on my Bucket List the goal to die without EVER participating in Black Friday!!!

[@Radientzone345]

Indeed, it would the top weirdest ways to die. Black Friday is dumb

[@kimberlychodur3508]

I’m 61 and am proud to say I have never participated in Black Friday. If consumption drives growth, then they can pay us better. They want more consumption but not higher wages.

[@jerseygrl5]

I am 73 and have never participated either! Frankly I see it as very shallow and trashy.

[@snacker0711]

My brother and I would go out to see the madness and have breakfast .

[@viktor_vaughn]

You can also be smart and take advantage during this time of the year. I buy myself nothing during the whole year. I add the stuff I really need to a wishlist during the entire year. That would be tools to do some home improvements, clothing, etc... then I wait and buy now when it's at a more reasonable price. The whole idea is, you only buy what you really need, and would give you value.

[@theparodychannel7842]

Yea until u see that items in ur cart u were waiting to go on sale either get marked up only to b "discounted" back to its regular price ..or it's "discounted" to a higher price! As alot of ppl r experiencing!

[@pharohphox7829]

I do the same thing with back-to-school deals and incentives, like a tax free weekend, to buy those office supplies and computer parts I was waiting for. I did notice this year at Best Buy that the back-to-school prices plus no sales tax was a much better deal than Black Friday

[@archabolt1446]

I haven't bothered with black friday in probably 10 years or more. Its 95% useless junk I have no use for.

[@curtis5799]

I agree. Bought a printer I kept my eye on all year.

[@morganseppy5180]

Exactly, i buy everyday things if they are on sale, pricier things if they are on sale, and odd things that are cheap. If you're a smart shopper, you can find deals. And make sure to use a card that gets you cash back!

[@VSSE4pd4]

I try to save around 50% of my salary. Forces me to live way below my means, live in the most affordable neighborhood in NYC in a tiny apartment, cook all my food, take public transportation, and not buy in to consumer culture. Goal is to have a retirement.

[@henrikandersson5067]

Swedish viewer here... It amazes me how we in Europe, and Sweden in particular like to copy all the bad things coming from "the big country in the west", while ignoring all the good things. Thank you for and informative and well made video.

[@magickaldood]

Tragedy makes good news, and misery loves company.

[@barbs116]

That was a 1990s in America people do not go to the stores like that on Black Friday. Most people shop online he’s showing videos that are 30 years old.

[@TokenTech]

I almost fell for the ads this year and almost got a new iPad even though my current iPad is great and over kill for me. Glad I took some time to think about it, instead of just buying it on the spot

[@donnarichardson7214]

Let's not forget you spend less by using savings instead of credit. Auto dealerships HATE me because I pay for a new car in cash. No interest for them. Likewise paid for a house in cash--well after I turned 50. I have no debt other than monthly paid-off credit cards, and don't buy what I can't afford. It's called self-discipline, with a hefty dose of determination to thwart capitalism.

[@annaclarke7643]

I like your thinking, because my habits align very much to your own. We are all pressurised to buy buy buy, but can you pay pay pay. Also the other main thing to think about is, what sort of world are you leaving for your children. We are drowning in rubbish. Just think about it.

[@morganseppy5180]

Ok boomer. All of those things are fairly out of reach for most ppl who are working

[@donnarichardson7214]

@@morganseppy5180 Not if you work hard and wait as long as I did, with some meaningful purpose in life to work for other than money for status and self-gratification. I rented and had roommates til I was nearly 40, because I had something more important to do than make money.

[@MG-js8bn]

@@morganseppy5180 People with healthy incomes have options others don't. The same people don't get that.

[@jefffinkbonner9551]

Every year parking lots around shopping centers were nuts and huge lines around every store. Then one year it suddenly was much more tame than any previous years. I believe it was 2015. It’s like that was the year where everyone suddenly discovered online shopping and collectively decided that Black Friday was absolutely not worth it. Every year since (forget 2020 and 2021) has been similar: quite busy, but navigable and not a madhouse. At least that’s what I’ve observed in the Pacific Northwest.

[@awakened3651]

What should also be noted is that as consumer spending began increasing so did the proliferation of storage facilities that are now as common as dollar stores in suburban and rural areas. American's stuff no longer even fits in the McMansions that also proliferated during the same time period. Consumerism has far surpassed the Victorian era of the rising middle class who filled their homes with bric-a-brac. Now the declining middle class fills their rented storage units with unused stuff still being paid for on maxed out credit cards.

[@jfp17]

I don’t remember the exact year, but it was post 9/11 and Bush was POTUS. It was this time of year, and the economy wasn’t great. The local news went to the mall and interviewed a woman about the economy and how it would affect her Christmas shopping. She said “Have to help the economy. Spend, spend, spend.” I still remember that all these years later, and how absolutely insane it was. It’s exactly like the video you posted. Just spend, spend, spend. Consume, consume, consume mindlessly really. Kind of helps explain the housing crash several years later I guess.

[@jefffinkbonner9551]

Yep. That time by the mid 2000s really got gluttonous. 25 years of Reaganomics plus the aggressive shift to being almost a purely consumeristic economy as all the production got outsourced really had people maxing out credit cards, living in too big of homes, and fooled into thinking they’d never have to pay the piper.

[@Gaumukh]

I have not spent a penny on any Black Friday sale or any sale. I have always followed the mantra, “ need vs want.” Till to this day, I have 2 pairs of shoes, 2 pairs of pants, and 5 shirts. I cook at home with occasional eating out. I have enough money to get me through a recession or if I get laid off.

[@shaneknowles6799]

How sad and ironic it was that I was watching this while shopping on Amazon.

[@purposebredlabs1992]

You haven’t gone off the rails, in fact I feel that we spend too much time and money buying stuff just because we, or our kids/grandkids, want it. I’m 58 and I came from a financially secure family. We got one present on our birthday and a few for Christmas. Kids don’t need a room full of toys. It’s out of control and has been for a long time.

[@donpenning7172]

If I save it, big brother will steal it.

[@morganseppy5180]

Uncle Sam steals it through devaluing the dollar. I think you need to keep your emergency savings in money market accts or some high yield savings. And then everything else after that needs to go into investment. Buy only what you absolutely need, treat expired food in your house as a personal failing, and sell or donate most of your "stuff". Real wealth is not material

[@donpenning7172]

@morganseppy5180 non material absolutely. In the meantime I steal yours, they steal mine you steal theirs its, an economy.🙃

[@blongshanks77]

Those Black Friday videos have to be old, because I don’t think stores do that kind of Black Friday thing anymore where they just open the doors all at one time. People were literally hurt, and some even died, so that prompted retailers to stop doing that.

[@AmandaHugandKiss411]

I doubt they changed anything,. I mean you still send your kids to schools.

[@gabeo9474]

I don't think it's entirely accurate to say that saving drives growth, but I actually don't think that's really what you are saying either. I think what you are really saying is that frivolous spending does not drive growth, but spending in the form of strategic investment that focuses on improving productivity efficiency does.

[@DadSavesAmerica]

Savings -> productive investment drives growth.

[@geraldstone8396]

Every year black Friday breaks sales records. No talk of inflation?

[@Suejd1001]

People have no money. They are doing all this to get gifts for their families. A lot of desperation out there .

[@marklsimonson]

This is one of your best videos. I've rarely seen such a concise and clear explanation of how the economy works and what's wrong with the usual narrative.

[@DadSavesAmerica]

I really appreciate that. I’ve been on this particular beat for a long time. www.pbs.org/newshour/economy/consuming-our-way-to-prosperit-1

[@SourWhiskee]

I didnt even see sny deep discounts online for black friday

[@BB-zd3jr]

Probably why sales are up 3% year over year. Because the customer is forced to spend more. Zombies. All they have to do is look at what the prices were before the ‘sales’ to see they’re being scammed.

[@insanegixxerdude486]

This is disgusting. The more things change the more they stay the same. Imagine what these people would do when there’s no bread or water on the shelves! This is utterly pitiful behaviour.

[@Ertzengel007_IM_btw]

The issue with growth is, that any gain in productivity each worker has, only fills the pockets of the top 0.1% because everything gets syphoned off by the top

[@mike_will777]

We grow by working. Not by buying stuff

[@alexandriadillhoff7069]

Having a list of ore decided purchases with the money saved to spend them and a budget for the month set is My favorite way to do black friday.

[@JoelAdamson]

Lots of Black Friday deals in the ads during this video 😂

[@robfreeman5783]

The "why not use spoons" story is great. The reality is automation, AI, robots, technology, machines, etc enhance our standard of living and allow us to stop digging ditches on "job programs."

[@Angelina-x6u]

The US economy is already in recession. Any rate cut will not ignite inflation. The banks will tighten even more, all consumer and corporate credit lending. This is the beginning of a deflationary period for your assets. Stocks markets will decline, and stock values disappear in a blink of the eye. Businesses will begin layoffs in earnest which will soon be reflected in the unemployment rate and unemployment claims, to further solidify the recession. In fact, when the FED cut rates, it will signify that the Titanic is going under, and it will suck everything down. Retail and housing sales will truly decline as consumer hold off their purchases. The inverted yield curve will then turn positive, but remember, certain assets like stocks and Crypto’s acts as a hedge. Long & short-term trading is generally safer, allowing investors to weather market volatility. I have managed to grow a nest egg of around 130k to a decent 532k in the space of a few months... I'm especially grateful to Milton Harper, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.

[@Angelina-x6u]

He mostly interacts on Telegrams, using the user-name,

[@Angelina-x6u]

@MiltonHarper

[@TariqOsman646]

sounds familiar, I have heard his name on several occasions.. and both his success stories in the wall Street journey!

[@Sebastian-x1h]

He is the Best signal provider in the market. Knowledgeable, level headed no loss like some other traders who recently jumped on the bandwagon.

[@LoriArredondo]

He's really good in studying the market and making a strategy and i am learning so much from him already.

[@andreasplosky8516]

We are forced to spend more, because in many cases prices have become extortionate.

[@berenthebear1313]

You could talk for hours about graphs. The real factor is the population spending habits. When people make less money, spend more on housing, food and medicine since we're being made sick on purpose. Everyone spends less to the point it becomes a whole generation of habit of spending less on consumer goods. This last for 20 to 25 yrs. We're in a beginning of a world collapse. This will be worse than the great depression. This will be a global depression.

[@angietorok8389]

Quit buying Christmas gifts. Its a scam. If I happen to see the perfect thing for one or two people, I MIGHT pick up a gift or two. Beyond that, I just don't feel obligated. And I don't expect other people to give me gifts either. And kids are so spoiled. They get everything they want all year long. It's not even exciting anymore. My husband and I have just created a whole different set of expectations around the holidays. And we enjoy them immensely because we can relax. Eat drink and be merry, but leave the gifts on the shelf and the money in your pocket.

[@cb73]

THANK YOU THANK YOU THANK YOU

[@chuckpershall9762]

Slowed growth correlates with wealth gravitation to few and fewer people. Growth, GDP growth specifically, is focused on large corporate production, and more and more people fall into debt spending and necessity spending which reduces the entrepreneurial spending required for continual growth

[@DadSavesAmerica]

I'm not sure that's empirical true. There's a very substantial degree of business turn-over the US, especially compared with Europe for example. Look at the fortune 100 list in 1955 vs 1975 vs 1995 vs 2015 vs today. Sears? Gone. Woolworths? Gone. They were the Walmart of their days. We have problems and we need MORE dynamism, not less. But the inequality story we've been told is mostly false. thedailyeconomy.org/article/these-inequality-statistics-are-fishy/

[@chuckpershall9762]

@@DadSavesAmerica you automatically jump to defending a political mindset. “Inequality story we’ve been told” two things can be true at the same time. You may not think it’s empirically true, but it’s inline with the content of your own video. “The inequality story” may not be the whole truth, but neither is the story you tell. The truth is made up of many parts, and there is more to the story of inequality than the story you’ve been told. When a majority of what you buy to sustain your existence is produced by fewer and fewer sources and society is conditioned over generations to purchase with debt, and banking systems punish savers yet encourage almost to the point of it being mandatory to invest in late overvalued corporations that have monopolies over the products you purchase it creates a system of inequality. It doesn’t mean there’s not turnover but what you see is more and more centralized wealth which will result in less growth because everyone isn’t growing.

[@lukeasacher]

I was 11 and at summer camp in Maine (Camp Cobbossee) with future Treasury Secretary Steven Mnuchin the day that Nixon closed the gold window...

[@kennethhillock4482]

Bet he did something naughty with a flute 🪈 🐈🫢

[@MongooseTacticool]

​@@kennethhillock4482 it's an old reference, but it checks out. 😂

[@theresewalters1696]

Craziness! How much do we really need?!

[@lennard5393]

not that much. I got 2 pans and 2 pots thats it. But i live alone as a man i dont think if a female would live with me she would agree i would get way more kitchen appliances that i do not want i rather have more space instead of filling every cabinet with stuff.

[@Queen-of-the-Burbs]

I’m glad that this is something I’ll tell my kids about rather than something they’ll experience. “Back in my day people fought over stuffed animals for their kids right after Thanksgiving” 😂 Beanie Babies and Tickle Me Elmo….what a time

[@JoJohnson-z8u]

Excellent show

[@BajatheChickenMan]

Happy Thanksgiving to you and yours, John. I enjoy these Friday monologues.

[@DadSavesAmerica]

Thanks, my friend. Happy Thanksgiving to you too!!

[@_synyster_9442]

It’s always the same generic products and brands that are “up for sale” for Black Friday. “ Yes you need a new air frier every year” 😂

[@pjabrony8280]

Of all the musical takedowns of Keynes I've seen on KZbin, this one was in the top 3.

[@nicodemous52]

IF consumer spending truly drives the economy, then inflation should be a blessing.

[@petercyr3508]

Good presentation.

[@KgzStylez]

😂 Every Holiday is a trick to get people to believe they have to spend on their spending addictions

[@TaughtbyTaylor333]

Love this video! You’ve gained a subscriber 🫶🏾

[@EdwardMurray06]

Neither myself nor anyone I know partake in Black Friday madness so I have a tough time wrapping my mind around those mob scenes of people acting like animals. Seems like some kind of psychological game to me

[@randallkelley3600]

This is connected to the Broken Window’s Fallacy, that which is seen and that which is not seen. Buying things you don’t need, replacing things that aren’t broken, is ultimately no different than throwing bricks through windows to “grow” the economy.

[@rodderbob]

Keep up the good work John, this message is a tough one to get across. Some guy named Aesop, oh, some 2600 years ago spun his fable of the Ant and the Grasshopper, pretty much the same story you're working on here. Don't give up..........

[@DadSavesAmerica]

Thanks! Great reference to Aesop.

[@michaelkeller5714]

Awesome topic! Thanks

[@BigD4Real.]

I ordered a USB cable, am I doing it right?

[@jaycarver4886]

@@BigD4Real. If you needed it. 🙂

[@kwyatt261]

Ok, so if we need more production to support more growth, we're STILL screwed. Production is extremely disincentivized in this country. Training and education aren't welcoming, to say the very least. Our population is becoming exponentially more deskilled as the generations pass. Seriously, skills are becoming RARER. And what does more production take? More skills, not less.

[@musicbeat8120]

amazing video i learnt a lot 😄

[@joemartin8888]

Sir, you are ringing out so many things I want to absorb....I love this channel!!!

[@DadSavesAmerica]

THANK YOU. Glad you're here! If you haven't signed up at dadsavesamerica.com, please do. It's free (though you can jump to a paid tier if you like, and will make sure you get notified of our videos via email. Can be helpful if KZbin decides to stop reminding you we exist!!!

[@GeoFry3]

Banks and government make the most money in the short term from consumerism. Big shock they push that.

[@keystoneken5032]

Great!

[@nsb9999]

The issue is that we need to produce goods and services, in addition to spending money on goods and services.

[@premiertrainingFL]

The sales simply don’t exist anymore. Corporate isn’t even throwing crumbs to the peasants any more.

[@gregodonnell8469]

Law of large numbers also at play in any mature economy.

[@julesniner1766]

This was the first Black Friday we didnt purchase a thing.

[@QoraxAudio]

The whole reason civilizations were eventually able to advance was because of the invention of agriculture. More efficient ways to produce foods meant there was time left to invent different things that improved the quality of life even further. However, nowadays it seems that automation doesn't really do much: if the productivity per person increases, it wouldn't lead to more abundance of goods, but just less jobs instead.

[@Mythhammer]

In the current system the best way of saving is hard assets. Gold/silver, tools,lead...

[@jack5590]

Many years ago I worked at one of these stores and during the early morning Black Friday event. Although it was a small town it was crazy. I only thought it would be larger cities affected. It is not.

[@PokeDerkTCG]

Deaths sleep looking more and more inviting. Save to what ? Spend ? Haha 🤣 I want out .

[@RpMcMurphy_]

That could easily be accomplished.

[@5stardave]

But what about trade deficits with consumer spending. If Americans only purchase US made products (with US made components), that graph might be different?

[@pmscalisi]

Good luck with that 😂

[@5stardave]

@pmscalisi There was a time when everybody bought at least 75% local.

[@alicecoppers8980]

During the year if I see something I want at good deal, I put it away for Christmas. No debt and I know I will like it.

[@yt.damian]

Growth is harder as you get bigger/richer. Savings are important - they do provide a pool for people to borrow to use for productive investments. Conversely spending faster does allow more people to get the benefit of the money. I pay for a taxi, he pays for a haircut, she pays for childcare, he pays for some training etc. That does not work nearly as well when foreign made (in particular but also any goods) goods are purchased but does still help. I think that there is some degree of rational selfishness that drives this in a healthy way - you save/invest some because you want to protect yourself against lean times, you spend to cover your needs and then you hopefully have some left over to have some fun with. The number of people without any financial safety net (savings) is a big problem. Once you are in that position it seems its easier to lean in on it and just put your hand out (and vote) for more.

[@DadSavesAmerica]

You're caught in the real vs. nominal trap that Keynesian-style thinking produces. The money and its turnover/velocity isn't what's driving anything. This is the fallacy of "Keynesian multipliers". Remember, money is mainly a medium of exchange. But what's being exchanged? PRODUCTION. What's being traded is everyone in that sequence's production of services for each other. In each case, the ability to trade for the other person's service is enabled by FIRST supplying a service. As for growth being harder at a larger scale... could be true. But beware of treating the economy like one giant company. It doesn't need to have diminishing returns in the same way that one hits diminishing returns in optimizing a single production process because we invent entirely new things all the time.

[@yt.damian]

@@DadSavesAmerica non economist here so definitions are not going to be exact. We have moved from a society where everyone produces a physical good because we can now build more things more efficiently by doing it at scale. Whether that is wheat, bread, computers, cars, whatever. So most of us in turn provide a service and many of those services are discretionary but that doesnt matter so long as someone else is willing to trade for them. Are you proposing that GDP is in inadequate measure of production, a misleading measure of production, or that our society would be better off if we all made tangible stuff? It seems that the first two are probably fair statements - GDP is inadequate and misleading. But we cant possibly all be producers of physical goods and be better off. Real world examples suggest that we will always get some sort of diminishing returns over time - especially at a country level. All forms of democracy where everyone can vote is doomed to fail because eventually enough of us will vote for handouts. Communism is just a shortcut to that day.

[@kwyatt261]

​@@yt.damian What is your justification for why everyone should not be able to produce a good or service? If incentives were different and all government regulations were gone, that would be a sure thing way of life in rural areas.

[@yt.damian]

@@kwyatt261 Im not saying everyone shouldnt. Im saying if that situation existed we would have a massively more basic standard of living and quality of life. Many things we take for granted could never have existed had we all still been involved in some sort of primary production or manufacturing. Additionally we would use a lot more (massively more) land if we were not living in cities and we were even partially involved in producing some of our own food.

[@kwyatt261]

@@yt.damian I agree, as without CAT manufacturing excavators, we're all digging holes by hand. However, basic gardening tools for subsistence farming are manufactured horribly and cheaply to the point where they break after a few uses. If we're fabricating our tools ourselves, they're built with iron and steel, and extremely durable. Tradeoffs.

[@philbridges3033]

I'll gladly pay full price to avoid that crap.

[@gandalfgimlilegolas6663]

Inflation kills savings. That’s probably one of the main reasons why everybody spin spin spin is because savings is being siphoned.

[@BrolyPowerMaximum]

Just when you think someone is pretty logically solid, you watch his that justify the way they spend on non essential consumerism

[@psikeyhackr6914]

What is the Net Domestic Product? Where is the data on the annual depreciation of durable consumer goods, like Automobiles and air conditioners and microwave ovens?

[@TopherJayy]

😂I'll would be in every store stealing something

[@garethmorris4629]

I watched to the end. This is in true Dad form, manages to be over simplistic and condescending in a genuine and heart felt way. I agree that productivity is a key to driving prosperity but only where the benefits are derived back to the worker. All historical precedent would show that the benefits are hoovered up by those at the top until societal pressure forces a rebalancing. I wish that wasn't the case but it isn't.The cute analogies for investment ignore its limits - just ask China where ongoing industrial investment but a lack of consumption is going to lead to a painful correction. Consumption has a place but a society that values it over connection is a shallow one.

[@DadSavesAmerica]

Thanks for watching! I’d prefer to say I’m judgemental rather than condescending, but so be it. I don’t hide my disdain for ideas I think are bullshit. Glad to have you here disagreeing though. China’s state-directed malinvestment is the problem, not the need for “consumption” to catch up in some cosmic “balance”. Consumption is what it is: using stuff up. That’s never a path to having more unless you’re taking about inputs into a productive process. Value can be destroyed. And China’s increasing shift towards state direction is driving down their growth potential and driving up value destruction. Growth does get harder as the low hanging technological fruits are “plucked” and fully deployed. The distributional elements is a longer convo.

[@KangaeruKaNa]

Please do a video on what the economy actually is. When we are told the economy is going well but our daily lives indicate otherwise I wonder what is meant by the economy.

[@vipcesh]

The chart is inverse of wage growth. Over the same period people had progressively less disposable income.

[@IG88AAA]

Sounds like the appeal to the individual is they can buy whatever they want guilt free because they are helping the economy. Selfishness becomes altruistic charity.

[@DadSavesAmerica]

Keynes called it “the paradox of thrift”. Your private savings isn’t a virtue, it’s a vice. Only, that’s complete bullshit.

[@IG88AAA]

@@DadSavesAmerica Do you think Keynes actually believed this, or was he bought off by people with a financial interest in making individuals into consumers? Where is a good place to learn more about Keynes and his influence on our society?

[@cynthiaaiken2424]

I did Black Friday once. Never again.

[@kml9166]

To sum up: making debts is driving the economy!

[@BlueScoutArmory]

Those are the type of folks with a lower frequency that I try and avoid.

[@TonyTheTGR]

It's just the Running of the Bulls, without the animal cruelty

[@wakingstate9]

Savings are inert. Wise spending is called for

[@PauldeVrieze]

Not quite, think of money like chits or tombola tickets. There is a fixed set of "prizes", more chits/tickets means the chance of getting a prize is lower per piece. Buying more may be good for the school roof, but it causes inflation for chits. If you withhold some bought chits (decide the prizes aren't worth waiting two hours in the cold and rain) the prizes you would have won will go to someone else (who values the prizes more, or thought to bring a waterproof)

[@viktor_vaughn]

I can do Uber for 2-3 hours and make those $100 that I am "saving" by buying that TV on black friday. I will be wasting the same time, and I will be providing a service. But, and the end of the day, do you really need that new TV? Think about it...

[@lukeasacher]

Anyone remember the bargain basement scene in Jerry Lewis' "Who's Minding the Store"? How about Steely Dan's song "Black Friday"?

[@AudaciousBean]

Saw news featuring "Black Friday Big Spending" or something like that, showed the "crowds" at a mall... it was what 10 years ago would've been considered a _basic bustle_ "Record spending" my 🍑 🤣

[@marcusmoonstein242]

Even worse than the low consumer savings is the high consumer debt. Debt is effectively spending tomorrows savings today. This is not a problem if the debt is being invested into increasing income because you can just use the increased income to pay off the debt and still come out ahead. But consumer debt very bad if it's being used to fund today's consumption because it means consumers will have even less to spend tomorrow. Consumers can temporarily get around this by borrowing even more, but at some point you run out of runway.

[@patrickmacleod2415]

I agree with most of your points here. However, you make the same mistake that many in the media make about GDP and GDP growth (of lack of growth) as an indicator of how wealthy Americans are. That is wrong. GDP just tells us how big the economy is and growth of the GDP just how much bigger the economy is getting. But to get an idea of how rick or poor Americans are, you have to look at GDP per capita and even better median GDP per capita. You can grow GDP by growing the population while people get poorer- more people contributing to the growth of overall GDP while their individual income goes down. An example I sometimes give students (high school) is African countries and African people are some of the poorest in the world. All this countries have pretty low GDP every year. But I could conquer all of African and make it one country with a fairly high GDP compared to other countries but GDP per capita would be just as low as it was and people just as poor. So the fact the GDP growth has gone down compared to growth rates in the past by 50% does not mean that Americans are anywhere close to 50% poorer. In fact, we are richer. Nevertheless, I agree about lack of saving and it is really going to come back to haunt us when Gen x goes to retire and most of them have nothing to support themselves, and they blame everyone else and the system. Many of my friends blow money on things that my parents would never dream of blowing money on, yet my parents retired with savings and most of my friends won’t.

[@reviewsbygen5591]

I’m sure these videos must be years old because my stores were not crowded, many carts in the stores left, many deals left, etc.

[@pmscalisi]

They are.

[@MrFunnyPenny]

I don't understand... I don't know anyone who shops would give a tiny little rats *ss about boasting the economy. But on this black Friday, you shop for things that you KNOW you can save if you can only buy the same things at a much higher price point throughout the whole year, as long as the items don't have an expiration date. It is managing personal finance.

[@Sweetpea3051]

50% off clothing was worth it to me. Waited to purchase some items until this time. Otherwise no reason for me to shop on that day. A few Xmas presents now until then.

[@Erewhon2024]

I just get my clothes at the Salvation Army, but admittedly fashion is irrelevant to my career and personal habits. Good work (steel toed boots etc) or duck hunting (ie harsh weather) gear would be an exception but I don't think I have seen Black Friday sales on those.

[@HonestUAWElectrician]

I am very proud to say I have never once purchased anything on Black Friday. Well not totally true. I'm sure I've gone to a gas station or convenience store for a can of Copenhagen and a Dr. Pepper, but that's it. Sadly Christmas has just become another day on the calendar for me.

[@michaeldalton8374]

The only problem I see in your theory here is govt debasement of the currency. Americans are actually punished by saving nowadays. Your buying power is reduced over time with inflation. $20 spent one year from now will buy less than $20 spent right now. You are losing ground by saving money without converting it to something tangible.

[@Erewhon2024]

Just be sure the tangible ítem is useful (to you) and long-lived. There are also investments (some tangible, but due to discounts below spot when selling and mark-ups above spot when buying, I am not sure commodity metals etc are really profitable, maybe a SHTF insurance, but in normal times good dividend stocks make more sense to me, intangible though they are) that can keep slightly ahead of inflation, at the cost of time/effort to research and trade them. I do need food, but a massive bag of grain or flour will just get destroyed by weevils unless I freeze it (which costs money also).

[@QoraxAudio]

When consumers buy stocks, does that also account for "consumer spending"? Or when consumers buy physical assets, like gold?

[@pattayaesl7128]

Savings reduces money velocity which slows inflation. It's all about inflation, according to your hero Milton Friedman.

[@RendeRboy3d]

The virtue in capitalism is not consuming, the virtue is saving.

[@pmscalisi]

And investing

[@justbe1451]

The mentality of America 😢

[@whirlwind6141]

I thought all this was online shopping now. What the hell, man?

[@mynameisnobody7840]

I remember Black Friday from my youth, everyone got along, no fighting, you would even have nice conversations with people. Going to Zayre for Black Friday after midnight and getting good deals and being around sane normal people. I was only something like 10 yrs back in the early 1980’s.

[@AmandaHugandKiss411]

You lie Cabbage Patch Kids Star Wars latest action figues Barbies Dreamhouse You're parents were willing to take you after Midnight 😂

[@pattayaesl7128]

Consumption drives profits for private business.

[@frenchdreamer1986]

Well for Keynes' defense, he couldn't imagine a world where tax rate exceeds 20%.

[@DadSavesAmerica]

Keynes was an interesting thinker and in many ways far less doctrinaire than our modern Marxist left. He might even be a conservative today. Who knows. He was still mostly wrong.