Consumers are so demoralized by inflation and high rates they've given up on saving for the American Dream and are spending money instead, economist says

Joanne Hsu, director of the University of Michigan’s consumer sentiment survey, noted that despite pessimism due to high inflation and interest rates, consumer spending remains robust. Hsu suggests that Americans, feeling that financial goals like homeownership and retirement are unattainable, have shifted from saving to spending. This spending is supported by a strong labor market, although there are signs of potential weakening.