Oles in the News: Economics faculty featured in the ‘Star Tribune’
St. Olaf College Associate Professor of Economics and Department Chair Allison Luedtke spoke with the Minnesota Star Tribune about consumer buying power in the Twin Cities and Minnesota. She notes that, even with rising costs, Minnesota is less exposed to tariffs and imports than neighboring states.
In the interview with Star Tribune retail reporter Carson Hartzog, Luedtke addresses a trend of declining spending among Gen Z and millennials as reported by Deloitte. She said the decline “largely reflects buying power,” noting that younger generations are more impacted by inflation, tariffs, and rising living costs due to being early in their career.
She casted wariness on reports touting growth in sales. Regarding the National Retail Federation’s holiday estimates, she told the Star Tribune, “When I saw that [retail federation report], I thought, yeah, that’s just a statement about how the cost of stuff goes up over time. I don’t think that’s a statement about how people are actually buying more stuff.”
Her sentiment was reflected by the S&P Global’s 2025 Holiday Retail Sales Outlook, which associates a holiday spending uptick with higher prices rather than more consumer spending.
Read the Star Tribune for the full story. Luedtke was also featured in Minnesota Matters, the weekly public affairs show on Minnesota News Network. Listen to her speak from 20:05-27:33.