Record Household Debt Suggests Consumers Facing Financial Strain

The U.S. economy has stumped observers and defied recession calls. Despite the plethora of headwinds threatening the world’s largest economy, from soaring borrowing costs to inflationary pressures, the country has witnessed better-than-expected gross domestic product (GDP) readings and strong labor market conditions. Experts have rationalized the hot data by alluding to resilient consumers. Aside from the uptick in consumer confidence in the past few months, the public has been chiefly sour on the present economic landscape. However, the widespread pessimism and broader financial challenges haven’t stopped shoppers from spending at the nearby mall or visiting Amazon. A November 2023 report by Intuit Credit Karma found that more than one-quarter of Americans are “doom spending.” This is when consumers spend money amid concerns surrounding the economy and geopolitical strife....