Overconsumption: The Recession Indicator

Introduction

Social media; trends; overconsumption. Have you ever participated in a viral trend without realizing it? Maybe your kids asked for the viral “squishy” or the latest must-have item, only for it to end up in a landfill several months later when the trend has officially ended. You probably have, but were you aware that this may be an indicator of a modern-day recession?

What is a Viral Trend? 

A viral trend refers to a social media phenomenon in which social media algorithms rapidly amplify certain styles, aesthetics, products, or behaviors. Trends are highly visible, desirable, and widely imitated, but often for only a short period. The following are examples of past and current trends:

  • Needohs is a handheld sensory toy that can be stretched and squeezed and comes in more than 50 different styles. This sensory toy went viral in 2026, despite its 2017 introduction, which demonstrates the power of following the masses through social media. Consumers have bought them in bulk and participated in other viral trends involving destroying the toy, which is quite wasteful for consumers’ pockets and the environment. 
  • Labubus, a collectible plush keychain, consists of various collections, styles, colors, and more. This viral plush keychain took the world by storm from mid-2023 to early 2024 after a K-pop star was seen with one and lasted approximately three years, triggering a new fascination with blind boxes. This created another trend and continued the cycle.
  • Barbiecore, an Anne Hathaway and Kim Kardashian-popularized fashion trend centered on the color “Valentino Pink” and went viral in 2022, before the Barbie movie was released in 2023. Following the release of the movie, the trend soared on social media and created a Barbie-inspired movement in which women, children, and others wore pink and fashionable clothing.

These are only a few examples of recent trends from the past couple of years, but new trends emerge every day, week, month, and year, with increasing consumer involvement.

The Cornerstone of American Culture is Overconsumption 

American culture is one of mass consumption that no one is immune to. As citizens of America live in a capitalistic society, based solely on false promises that anyone can be financially stable and attain the million-dollar house, dream car, children, vacations, and other wealth status symbols if they work hard enough. This, of course, is unrealistic. Most Americans are not in the upper-income bracket they model their lives after, but they spend like they are and go into an extraneous amount of debt. Whether this can be attributed to social media is unknown, but it surely does have its influence. 

For example, social media influencers fuel overconsumption through content like “Get Ready With Me” videos, which promote expensive, trend-driven products that quickly go in and out of style. This pressure to keep up with trends creates a constant desire for more, contributing to the attention economy, a concept coined by Herbert A. Simon in the 1960s. Influencers and brands alike manipulate people by weaponizing social media algorithms to maximize the number of seconds a viewer will stay on the video before swiping, pushing for overconsumption.

Americans are disconnected from the places and communities that create the products we use, and many Americans would struggle to imagine what life would be like if we did not have access to these things. We, the American people, are the product and contributors to this cultural norm, but how does this reflect the economy? 

An Economic Indicator: The Lipstick Effect 

The lipstick effect is a consumer’s willingness to purchase smaller luxuries during an economic downturn, reflecting income substitution as consumers forgo larger purchases. This is a manifestation of the income effect, which economists describe as the change in demand for a good or service resulting from an increase or decrease in a consumer’s purchasing power or real income.

For inferior goods, rising consumer income can weaken demand, similar to the lipstick effect but in the opposite direction. As consumers’ incomes fall, they forgo larger purchases and luxury goods that they can no longer afford and instead spend their reduced income on smaller luxuries. Consequently, this fuels the fire that is overconsumption. 

Because Americans are unable to afford larger purchases or luxuries, they may instead spend their money on smaller luxuries, such as those frequently associated with viral trends discussed previously. This can subconsciously allow individuals to feel as though they have greater purchasing power when, in reality, they do not. Buying and collecting Labubus, for instance, which can range from $30 to $100 or more, is not comparable to purchasing a car; however, these smaller luxuries can provide the dopamine associated with the feeling of purchasing power, encouraging repetition. 

Conclusion 

Viral trends that fulfill the lipstick effect, giving American citizens a false sense of purchasing power, will likely continue until there is economic prosperity. Until there is sustainable economic growth that can bring the United States out of an economic depression, consumerism will continue to be encouraged, contributing further to overconsumption and creating a system doomed to fail. 

Bibliography 

Kent, Kelsey. “Viral Trend Culture: How Social Media Fuels Obsessive Consumerism.” Socialnomics, 9 Nov. 2025, https://socialnomics.net/2025/11/09/viral-trend-culture-how-social-media-fuels-obsessive-consumerism/.

Rogers, Adam. “20 Trending Products and Things To Sell Online (2026).” Shopify, updated by Joe Hitchcock, 27 Apr. 2026, https://www.shopify.com/blog/trending-products.

Sangster, Ella. “16 of the Biggest Fashion Trends of 2022, from the Runway to TikTok.” Harper’s BAZAAR Australia, 30 Dec. 2022, https://harpersbazaar.com.au/2022-biggest-fashion-trends/.

Woolums, Lexie. “The Excessive Nature of Overconsumption in American Culture.” UAB Institute for Human Rights Blog, 24 Oct. 2023, https://sites.uab.edu/humanrights/2023/10/24/the-excessive-nature-of-overconsumption-in-american-culture/.

Yu, Yi-Jin. “NeeDohs Are the New Viral Toy: What to Know.” Good Morning America, 7 July 2026, https://www.goodmorningamerica.com/family/story/needohs-new-viral-toy-132023062.

“Overconsumption in America Statistics.” Worldmetrics, https://worldmetrics.org/overconsumption-in-america-statistics/. Accessed 17 Aug. 2026.

Reeders, Dr. “The Neuroscience of Overconsumption: Why ‘More’ Is Most Often Not Better.” Neuroscience & Wellness, 14 Jan. 2026, https://neurosciencewellness.substack.com/p/the-neuroscience-of-overconsumption.

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