I'll never take seriously someone who uses the phrase "excess savings" unironically. Which, amusingly, is directly related to the topic: "the economy" isn't about the average person, and this is largely why there's is a huge disconnect between Wall Street/politicians/economists and actual people on perceptions of how well "the economy" is doing.
Because I don't have a choice. Food, rent, and utilities are expensive and the price keeps going up. I would be homeless to save money on rent but it's illegal to sleep in a car.
Because things cost more than they did a year ago perpetually because yachts cost more money the bigger they get and nobody cares to appropriately regulate the crazy gravy train that pays them.
I don't remember where I heard this but it resonated with me: People are still spending like there's no tomorrow, because they sense that there's no tomorrow.
Yeah, that tracks. It has at least partially affected my spending. I relaxed my miserly habits a year or two ago when realizing I have no retirement future and no idea what I’m realistically saving for. So I’ve stopped delaying small comforts and experiences I would have scrutinized much more in the past.
I think it depends on their form of retail therapy. My most recent "luxury" purchases (aside from vet bills and car repairs) have been a brand new vacuum cleaner to replace my really sucky old one, and a dremel so that I can complete four projects without ruining my hands. Both purchases gave me a retail-therapy high - but being able to quickly and easily complete those projects and put everything away, and finally having a clean house, are both giving me an even longer-lasting high, when I can walk around without feeling the grime in the carpet, and I can walk into the dining area and not immediately be confronted by a table of "oh, yeah, I really need to finish those, shit".
Did I absolutely need the vacuum or the dremel? Nope, their purchase was retail therapy, I definitely did it for the high. But I justified the purchases by saying they'd be good for me - and they have been.