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Taylor Swift reaches new heights with her latest album, which is both divisive and record-breaking. And it’s fueled by an elaborate series of business choices that propel profits but also chart numbers. Today’s episode comes from our friends at Today Explained, Vox’s lively, smart daily news podcast.
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This episode was hosted by Noel King. It was produced by Ariana Aspuru, edited by Amina Al-Sadi, fact-checked by Laura Bullard, and engineered by Adriene Lilly.
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Wherever consumer sentiment goes, consumer spending usually goes too. They’re like buddies that do everything together. Consumer sentiment wants a hair cut, its buddy consumer spending does too.
But lately, these friends are drifting apart.
While consumer sentiment about the economy is down … spending remains strong.
And not just that… Interest rates are still high, inflation is growing, tariffs have made the prices of goods go up. And yet, consumer spending looks good. What gives?
Today - a consumer spending mystery. Is the economy actually healthy? Or is something distorting our view of the economy?
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This episode was hosted by Sarah Gonzalez and Kenny Malone. It was produced by James Sneed. It was edited by Meg Cramer and fact-checked by Sierra Juarez. It was engineered by Debbie Daughtry and Kwesi Lee. Alex Goldmark is Planet Money's executive producer.
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(Note: A version of this episode originally ran in 2022.)
Every time you shop online and make it to the checkout screen, you see those colorful pastel buttons at the bottom. Affirm. Klarna. Afterpay. Asking: Do you want to split your payment into interest-free installments? No credit check needed. Get what you want, right now.
That temptation got shoppers like Amelia Schmarzo into some money trouble. Back in 2022, she maxed out her credit card after a month of buying now and paying later. She’s not alone. Buy now, pay later is everywhere now. And you can finance almost anything with it. Your clothes, your furniture … even your lips.
But if these companies don’t charge interest, how do they make money? In short, people buy more stuff using these services and so sellers are willing to pay up. Which makes buy now, pay later, something of a threat to credit card companies. Cue the tussle for your impulse-buying clicks.
Today on the show, we find out how the companies work, who’s most likely to use these services and who’s getting a good deal. And a warning: those little loans will soon be on your credit report.
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This episode was produced by Emma Peaslee, engineered by Josh Newell and edited by Molly Messick. Our update was reported by Vito Emanuel, produced by Willa Rubin, engineered by Gilly Moon and edited by our executive producer, Alex Goldmark.
Music: Universal Music Production - "Retro Funk," "Comin' Back For More," "Reactive Emotion," and "EAT."
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