Why is ‘doomspending’ on the rise?
Sean Monahan argues that young people’s “doomspending” reflects a broken economic script: saving feels pointless when housing and other basics keep outpacing wages.
Intelligence analysis by GPT-5.4 Mini
The piece treats doomspending as more than a trend. It links today’s spending habits to inflation, expensive housing and healthcare, and a growing belief among young people that the old promise of save-now-pay-later no longer works.
The article says some young people spend money now because they do not trust that later will be better. It is like eating dessert first when the kitchen looks empty: if tomorrow feels shaky, saving for it seems less useful.
Analysis
What “doomspending” means
Monahan defines doomspending as frivolous or impulsive spending with little concern for future financial consequences. He says the term has spread alongside other gloomy internet slang, but the behavior itself reflects something bigger than a fad.
The economic backdrop
The article connects the rise of doomspending to the years after the financial crisis, when the traditional life script weakened. Saving when young and spending when old makes less sense, Monahan argues, in an inflationary environment where housing, healthcare, and education have risen far faster than wages. He says cheap consumer goods can hide the decline, while big-ticket “positional goods” keep getting more expensive.
A generational divide
Monahan contrasts older generations, who often still treat thrift as a moral virtue, with younger Americans who see that moral story as less credible. He points to a Credit Karma survey from fall 2024 saying 27% of Americans doomspend to deal with stress, rising to 37% for Gen Z and 39% for millennials. He also recalls past blame directed at millennials over “avocado toast,” comparing it with current complaints about Gen Z’s spending habits.
The article’s larger claim
The core argument is that doomspending is not just self-indulgence. It is a response to a world in which many young people feel the economy resembles a casino: some people win, most lose, and the old promise that hard work reliably leads to security no longer feels true. Monahan says that sense of disillusionment is likely to shape politics and economics ahead, whether through populism, socialism, or something else.
Bottom line
The piece frames doomspending as a symptom of weakened faith in the future, not merely bad budgeting. It suggests the spending habit may be irrational on the surface but understandable in a system many young people no longer trust.
Key points
- Doomspending is presented as spending without concern for future financial consequences.
- The article links the trend to inflation, expensive housing, healthcare, and education.
- It argues that younger Americans no longer trust the old advice to save now and spend later.
- A Credit Karma survey cited in the piece says doomspending is especially common among Gen Z and millennials.
- Monahan frames the trend as a sign of disillusionment with the economy and the future.
If doomspending is a response to real economic pressure, it could push more honest conversations about wages, housing, and affordability. The article also suggests it may help drive support for redistribution or other changes that better match people’s lived reality.
If spending like there is no tomorrow becomes normal, it could deepen financial insecurity for already stressed households. The article also warns that this mindset may reflect a broader collapse in trust, making the economic and political outlook more unstable.
