In recent years, inflation has had a much heavier psychological impact on European residents than on Americans. Europeans are afraid to part with their money, and this is becoming a serious problem for the entire economy of the region. The reasons for this phenomenon are explored by The Wall Street Journal.
24-year-old Czech engineer Matej Macak is an example of a new European lifestyle. He has given up his hobby of collecting sneakers and now hesitates for a long time even before buying a phone charger. Macak saves more than half of his income, but he himself admits that his savings are already exceeding reasonable limits.
“I buy less now than I did when I had less money,” he admits.
Macak's story is not an exception but a new trend. In recent years, Europeans have begun to save with doubled vigor, which creates new problems for the economy. The unwillingness to spend is one of the main reasons why Europe is lagging behind the U.S. Active consumption in America, especially among the affluent classes, contributes to GDP growth. Meanwhile, European luxury goods producers – companies engaged in the production of bags, watches, and clothing – are now forced to mainly rely on buyers from the U.S. and Asia.
