The spending paradox: no money for businesses, but plenty for TikTok

The spending paradox: not a penny for traditional businesses, but TikTok Shop sells like hot cakes

The same old tune keeps playing: nobody has a cent, and starting a business in Spain is financial suicide. The diagnosis seems settled, but consumer data tells a different story. While some claim people spend all day on their phones without spending a euro, others point out that spending has shifted to platforms like TikTok Shop, to collectibles, to trinkets from Ikea or Action. The paradox is complete.

Some argue the problem is not that there is no money, but that the money goes to trifles with low perceived value. The same user who says they cannot afford a serious business buys themselves a new phone or a batch of cheap trinkets. The real economy has split in two: the one selling grown-up things – which nobody buys – and the one selling instant treats, which never stop selling.

A telling example: a millionaire complained on social media about being charged €200 to wash his Lamborghini Urus. "I'm a millionaire, not an idiot," he said. The anecdote reflects how selective spending is, even among those who have money. If a millionaire haggles over €200, what can you expect from the average consumer? Perceived value is key.

Some argue the sensible thing is to sell to people who have money, not to compete with Amazon or the supermarket. They point out that the real goldmine lies in premium services for high earners, because the middle class tightens its belt on expensive things but splurges on cheap ones. The mistake many entrepreneurs make is offering the same products already on supermarket shelves, at a higher price.

Given this picture, the conclusion is not that there is no money, but that it is badly distributed and even worse directed. Business has not died: it has moved to where the customer feels they are getting something, even if it is a piece of junk. The prediction holds: as long as spending on impulse treats stays high, the complaint that there is no money will mask the real problem – that people spend on the wrong things.