Too Many Young Men Drive Consumer Spending

Consumer spending drives the U.S. economy, but what drives consumer spending? Sometimes, it’s young men. In cities where men outnumber women, consumer spending is stoked by young men competing against other young men for women.

The men-to-women ratio affects human behavior. Past studies show that there are more married couples and fewer single mothers in cities where men outnumber women. (The converse is true when city women outnumber men.) In the more-men-than-women cities, the men are more aggressive in finding a mate than in cities where women outnumbered men or where the men-to-women ratio is equal. Men change their behavior depending on the number of rival men. Women also change their behavior depending on the number of rival women. For example, if women outnumber men, women tend to be less selective in the choice of a mate.

A new study looked at the men-to-women ratio and the consumer spending habits in over 120 U.S. cities. In the cities where young men outnumbered young women, there were more credit cards per city resident and more credit-card debt than in other cities. Men in the more-males cities save less, spend more and rack up credit-card debt. The savings and consumer habits of young women, however, are not affected by the men-to-women ratio. The study concluded that young men fuel impulse purchasing and overspending.

Young men are more competitive in areas where there are more-men-than-women, and they spend money to attract women. In the more-men-than-women cities, both men and women expect men to splurge during courtship. In these cities, women expect that men will spend more for a Valentine’s Day gift, a dinner or an engagement ring. Men also expect that other men (their rivals) will spend more during courtship, because men outnumber women.

Researchers speculate that the men-to-women ratio may affect other human behaviors. Men may invest more in education to improve their competiveness to attract women in places where men outnumber women. Men may show more fidelity in these places where the competition for women is strong, and married men may become more committed to their spouses. Could women be affected in the same way if they outnumbered men in a given area? The research continues.


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