Indicators of a potential recession often point to economists monitoring consumer spending trends and increases in unemployment rates.
However, for those who are closely engaged with social media, recession signals can take on a different form; they might highlight a perceived decline in items such as fake eyelash usage or an uptick in advertisements for online educational opportunities. Alternatively, it may involve a skin care brand that recently began selling eggs.
For Sydney Brams, a realtor and influencer from Miami, a notable signal is the drop in prices on the resale platform Depop.
“I was literally rushing to my parents and my boyfriend, saying, ‘Look at this. Something seems very off,'” Brams recounted to Finance Newso after noticing some Depop sellers seemingly “coming back to reality,” in her words. “I feel like Chicken Little,” she added.
As worries about the economy rise alongside stock market drops and disappointing economic reports, the humor surrounding everyday recession indicators has gained popularity. This shift also reveals a distinct level of financial discontent among younger Americans.
Many young adults today grew up during the Great Recession and matured in a world dramatically altered by the pandemic, which disrupted everything from physical work environments to global supply chains. Current concerns about a slowing job market and inconsistent tariff policies from former President Donald Trump are adding to their economic anxiety.
While these young people may joke about their quirky recession indicators, the serious implications of the economic situation are far from humorous.
“This is gallows humor,” remarked James Cohen, a digital culture specialist and assistant media studies professor at Queens College in New York. “It’s very much a coping strategy.”
Such omens are not limited to physical reminders; they proliferate across various social media outlets like X, TikTok, and Instagram. Users interpret cultural markers of economic downturns through phenomena such as Lady Gaga’s release of her latest album or critiques regarding the quality of the newest season of HBO’s “The White Lotus.” Some see social trends such as learning to play the harmonica or adopting a browner wardrobe as precursors to a financial decline.
In recent days, a trend has surfaced among multiple social media users, who capitalized on humor following the announcement of a partnership between DoorDash and Klarna, allowing users to finance their food delivery orders. A representative from Klarna noted to NBC News that relying on credit for meal payments is a concerning symptom for society.
Content creators have utilized this humor as a platform to promote affordable alternatives for everyday luxuries that may soon have to be sacrificed.
“We are heading into a recession. You need to learn how to do your nails at home,” suggested TikTok user Celeste in DC (@celesteiacevedo) in a video tutorial on using press-on nail kits instead of visiting a salon.
Declining confidence
The humor surrounding these jokes reveals a deeper concern, as recent data indicates a growing sense of discontent among young adults regarding the economy.
At the beginning of 2024, individuals aged 18 to 34 reported the highest consumer sentiment levels among all tracked age groups by the University of Michigan. However, this index has since seen a decline of over 6%, even as sentiment has improved in older demographics.
This shift is particularly striking given that young people have typically exhibited more optimistic economic sentiment than their older peers, as noted by Joanne Hsu, director of the Surveys of Consumers at Michigan.
Historically, younger individuals have faced fewer financial responsibilities, making them relatively optimistic. However, Hsu pointed out that current challenges, such as soaring housing costs and debt, coupled with uncertainty regarding new economic policies, have dampened their outlook.
“I believe young adults feel that many aspects of the American dream are increasingly difficult to achieve,” Hsu stated.
Additionally, young individuals often lack financial safety nets, such as property or investments, that can support their morale during economic downturns, explained Camelia Kuhnen, a finance professor at UNC.
The looming threat of a recession, typically characterized by two consecutive quarters of negative GDP growth, weighs heavily on both Wall Street and Main Street. A survey from Deutsche Bank conducted in March indicated that global market strategists see a nearly 43% probability of a recession occurring within the next year.
Moreover, the Conference Board reported a drop in consumer expectations to its lowest point in 12 years, signaling a higher chance of recession. Notably, searches for the term “recession” on Google peaked in March, reaching levels not seen since 2022.
This assortment of concerning indicators follows comments from Treasury Secretary Scott Bessent, who remarked on March 16 that there are “no guarantees” of avoiding a recession. Bessent suggested that the economy may require a “detox” period, referring to longstanding reliance on government spending as a contributing factor.
‘The vibes are off’
The trend of recession-related humor is not new, yet it has surged in recent weeks as economic conditions have attracted increased attention, according to Cohen. While a “recession indicator” entry has only recently been incorporated into the digital culture encyclopedia Know Your Meme, similar jokes have circulated since at least 2019.
“There is a lot of humor among Gen Z surrounding the consistent instability of their economic environment,” noted Max Rosenzweig, a 24-year-old user experience researcher, whose personal recession indicator is the prevalence of berets in fashion. “It’s funny, yet it reflects something quite serious and frightening.”
Cohen has heard from Gen Z students that such humor helped them recognize that they are not alone in their economic uncertainties. While they might feel powerless regarding the broader economic situation, they find solace in shared experiences.
Cohen interprets the increase in humor surrounding economic conditions as a barometer of collective sentiment, stating, “The vibes are off.”
Brams echoed these sentiments, describing her experiences in South Florida and on social media. “Honestly, it feels very grim,” the 26-year-old said.
Yet she expressed a resignation to the situation, stating, “There’s nothing my friends, boyfriend, or family can do about it. The only choice is to stay focused, keep my job, find joy where I can, and just manage to get by.”
