'Underconsumption core' trend may lead to economic slowdown

NBC News

12 Aug 202402:29

Summary

TLDRThe video script explores the emerging 'Underconsumption Core' movement, where individuals are embracing frugality and rejecting consumerism. It features people advocating for using what they already own, reducing the pressure to keep up with trends, and prioritizing functional living spaces over aesthetic ones. The trend, which is gaining popularity with videos amassing millions of views, also encourages buying secondhand and downsizing on non-essentials, potentially linked to younger Americans facing economic pressures. Companies are now noticing a shift in consumer behavior, with customers seeking deals and spending less.

Takeaways

🛍️ Spending is not expected to increase as it has been previously, raising concerns about a potential economic slowdown or recession.
🌱 A movement called 'Underconsumption Core' is emerging, which promotes spending less and finding contentment in underconsumption.
🎵 The Underconsumption Core movement is often associated with relaxing music and a focus on frugality and sustainability.
🏠 It encourages people to make more use of the things they already have and to reduce the pressure to keep up with consumer trends and influencers.
👟 Underconsumption is about recognizing that the shoes and clothes we already own are sufficient and can be reused.
📊 Videos promoting this lifestyle have gained significant traction, with some reaching over 1 million views.
🏡 The trend involves trading aesthetically pleasing spaces for more functional living, embracing a minimalist lifestyle.
🛍️ Consumers are encouraged to downsize on non-essential items like makeup and new clothing to save money.
🌳 There is a growing interest in environmental concerns, with people preferring to buy secondhand items rather than new ones.
🔗 The 'Underconsumption Core' name is new, but the concept of mindful spending has been around and is gaining popularity, especially among younger Americans.
💡 The trend may be linked to younger generations facing persistent economic pressures, and it echoes past consumer behavior during economic downturns like the Great Recession.
🛒 Despite the post-COVID economic growth driven by consumer spending, companies are now noticing customers seeking deals and reducing purchases due to high interest rates and prices.
💸 The script suggests it might be time to reassess the 'revenge spending' that occurred post-pandemic as consumers are now more cautious with their spending.

Q & A

What is the current concern regarding consumer spending in the economy?
-The concern is that spending may not increase as it has been, and there is a question of whether the economy will slow down enough to trigger a recession.
What is the term used to describe the trend of spending less and being more frugal?
-The term used is 'Underconsumption Core', which is a movement that encourages spending less and getting more use out of things.
How is the Underconsumption Core movement portrayed in online videos?
-The movement is portrayed with videos set to relaxing music, often featuring content about being frugal, using items for longer, and reducing the pressure to keep up with consumerism.
What is the Underconsumption Core movement's stance on buying products from online marketplaces like Amazon?
-The movement rejects the idea of buying from online marketplaces like Amazon, advocating for less consumption and more thoughtful use of existing possessions.
How does the Underconsumption Core movement relate to the concept of 'functional living'?
-The movement encourages trading aesthetically pleasing spaces for more functional living, focusing on the utility and necessity of items rather than their appearance.
What are some of the lifestyle changes suggested by the Underconsumption Core movement?
-The movement suggests downsizing on makeup and beauty products, buying secondhand items, and embracing a more spontaneous and quirky approach to living.
How does the Underconsumption Core movement align with environmental concerns?
-The movement aligns with environmental concerns by promoting the use of secondhand items and reducing the consumption of new products, which can help decrease waste and environmental impact.
What is the impact of the Underconsumption Core movement on consumer spending habits?
-The movement is influencing consumer spending habits by encouraging people to buy less, seek deals, and reconsider the necessity of purchases, which could potentially affect economic growth.
How have companies responded to the shift in consumer behavior towards the Underconsumption Core movement?
-Some companies have noticed their customers looking for deals and buying less, which may indicate a change in marketing strategies and product offerings to adapt to these new consumer preferences.
What historical economic events are mentioned in the script that might be related to the current consumer spending trends?
-The script mentions the Great Recession as a historical event that might be related to the current consumer spending trends, suggesting a pattern of economic bursts and subsequent downturns.
What factors are contributing to the rise of the Underconsumption Core movement according to the script?
-Factors contributing to the rise of the movement include younger Americans feeling persistent economic pressures, high interest rates, and high prices post-pandemic, which have led to a reassessment of spending habits.

Outlines

00:00

🛒 The Rise of Underconsumption Core

The script discusses a shift in consumer behavior with spending not expected to rise as it has been, raising concerns about a potential recession. A movement called 'Underconsumption Core' is emerging, where people are embracing frugality and rejecting the pressure to keep up with consumerism and influencers. This trend is characterized by using items longer, avoiding unnecessary purchases, and seeking more functional living spaces. Videos promoting this lifestyle are gaining popularity, with some reaching over a million views. The movement also encourages buying secondhand and caring for the environment, which is gaining traction among younger Americans facing economic pressures.

Mindmap

Keywords

💡Underconsumption

Underconsumption refers to the economic theory that suggests a lack of consumer spending can lead to economic downturns. In the context of the video, it is being glamorized as a lifestyle choice where people deliberately spend less. The script mentions 'Underconsumption Core' as a movement that encourages being frugal and getting more use out of things, which is a direct response to the consumption overload.

💡Recession

A recession is a period of negative economic growth that lasts for at least two consecutive quarters of a fiscal year. The script raises the question of whether the economy might slow down enough to trigger a recession, highlighting concerns about the sustainability of consumer spending levels.

💡Influencers

Influencers are individuals who have the power to affect the purchasing decisions of others because of their authority or fame in a specific niche. The video script discusses the pressure of keeping up with influencers as a reason why some people are turning to underconsumption, seeking to escape the constant push to buy new products.

💡Sustainability

Sustainability, in this context, relates to the ability to maintain a certain behavior or process over the long term without depleting resources or causing negative impacts. The script implies that underconsumption is a sustainable alternative to the current consumer-driven economy, as it encourages buying secondhand and reducing waste.

💡Functional Living

Functional living spaces prioritize utility and practicality over aesthetics. The video mentions that under the underconsumption trend, people are trading aesthetically pleasing spaces for more functional ones, which could mean downsizing on non-essential items to focus on what is truly needed.

💡Frugal

Being frugal means being economical with one's resources and spending less. The script describes underconsumption as being about frugality, where individuals aim to get more use out of the things they already have, rather than continuously purchasing new items.

💡Consumer Spending

Consumer spending is the amount of money spent by households on goods and services. The video discusses how relentless consumer spending has driven economic growth post-COVID but also raises concerns about the potential negative impacts of reduced spending on the economy.

💡Economic Growth

Economic growth refers to an increase in the production of goods and services in an economy over a period of time. The script mentions that post-pandemic consumer spending has fueled economic growth, but there are signs of a slowdown as consumers are looking for deals and buying less.

💡High Interest Rates

High interest rates are the costs of borrowing money, which can impact consumer spending and investment. The video script suggests that high interest rates, along with high prices, have taken a toll on consumers, potentially leading to a decrease in spending.

💡Makeup and Beauty Products

The script uses makeup and beauty products as an example of non-essential items that people might downsize on as part of the underconsumption movement. This illustrates the trend's focus on reducing spending on items that are not necessities.

💡Secondhand

Secondhand refers to items that are being sold or bought after having been used by someone else. The video mentions that people who care about the environment prefer buying secondhand, which is a key aspect of the underconsumption movement, as it reduces the demand for new products and supports sustainability.

Highlights

Spending isn't expected to increase as much as it has been, raising concerns about a potential economic slowdown or recession.

A movement is emerging that romanticizes and glamorizes spending less, termed 'underconsumption core'.

The underconsumption core movement is characterized by rejecting consumption overload and promoting a more frugal lifestyle.

Videos associated with this movement often feature relaxing music and focus on getting more use out of things, reducing the pressure to keep up with influencers.

The concept of underconsumption involves making do with what one already has, such as wearing the shoes one already owns.

Some content creators in this space have reached over 1 million views, indicating the trend's growing popularity.

The movement encourages casting aside aesthetically pleasing spaces for more functional living and embracing spontaneity.

Participants in underconsumption are also encouraged to save money by downsizing on makeup and beauty products, as well as new clothing.

There is a noted environmental consciousness among underconsumption core followers, with a preference for buying secondhand items.

The 'know spend' trend is going viral, with 'buy nothing' groups gaining popularity, potentially linked to younger Americans feeling economic pressures.

The trend may be a reaction to previous economic bursts, such as during the Great Recession, where consumer spending was relentless but unsustainable.

Post-COVID, consumer spending drove much of America's economic growth, but now companies are seeing customers looking for deals and buying less.

High interest rates and prices have taken a toll on consumer spending, leading to a reassessment of post-pandemic spending habits.

The underconsumption core movement reflects a shift in consumer behavior towards more sustainable and less materialistic lifestyles.

The movement challenges traditional consumerism and encourages a reevaluation of the need for constant acquisition of new products.

The underconsumption core is not just about saving money but also about finding contentment and reducing stress associated with consumer culture.

The trend highlights a growing awareness among consumers about the environmental and economic impacts of their spending habits.