Date of Award

Fall 5-1-2024

Document Type

Thesis

Degree Name

Bachelor of Arts (BA)

Department

Economics

First Advisor

Monica Das

Abstract

This paper focuses on the different effects of COVID-19-driven inflation on U.S. consumer spending on food, durable goods, and nondurable goods. The study used regression models to analyze changes in personal consumption spending on three categories between 2010-2017 and 2018-2024. The article emphasized that the economic instability caused by the pandemic and the fiscal policies utilized by the government have contributed to consumer behavior to a certain extent. The survey results show that the impact of inflation on food and non-durable goods spending is very clear: consumption on non-durable goods and food has increased. This may be due to increased health awareness and the demand for disposable household items. At the same time, spending on durable goods fell as consumers became more uncertain about the economic outlook. The study notes that the primary role of government interventions, such as fiscal stimulus measures, is to curb some of the negative economic effects by preserving consumers' purchasing power. Therefore, this means that the policies in the study have a legitimate use for adequately describing market reactions and consumer behavior in global crises, enabling them to inform policymakers and consumers alike. At the same time, the study also presents the need for flexible economic strategies to support effective recovery and resilience to make a greater contribution to society.

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