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thrifty getting the shaft again

December 11th, 2008 at 01:24 pm

I read today's news story about how people actually reduced their overall debt for the first time since 1951, as a society.

Which in my opinion, is one step closer to the right track.

But, of course, talking heads made it sound all gloom and doom and awful that people weren't taking on more debt or shopping.

My favorite quote:

"Everyone over the past three months decided to become thrifty at the same time, but our incomes depend on other people spending," said Englund. "If we all start saving and cut back on our spending at the same time, it means more people will ultimately get fired."

4 Responses to “thrifty getting the shaft again”

  1. disneysteve Says:

    Unfortunately, that's actually true. We have a consumer-driven economy. Around here (NJ/PA area), there are constantly new stores and restaurants being built. They need customers to keep all these new places, and all the existing places, in business. If people cut back on eating out, guess what happens to all the restaurants. If people stop frivolous spending on designer clothes and handbags, guess what happens to the malls and boutiques. If people stop buying new and expensive cars and SUVs and instead start buying more smaller, cheaper, used vehicles, guess what happens to the car dealers.

    Over time, we'd adjust to the changes, but in the process, many jobs would be lost, many stores would sit vacant, many restaurants would go out of business. I think that would be a good thing in the long run though it would be a rough ride.

  2. thriftorama Says:

    In the short term, yes, it will hurt, but in the long run we'll be a stronger country if we are a nation of savers. China would borrow money from us instead of us borrowing money from them.

  3. gruntina Says:

    Our products and foods come from China! We do not have as many labor jobs here as we do more of core positions rather than industries and manufacturing. So how is the country going to have money if it is being earned and stored out of the country?

  4. Broken Arrow Says:

    Thriftorama, you said what I was going to say in your response.

    I've mentioned in our past that our consumer-driven economy is a bit like a drug addict. It's tough withdrawing from it, but I think we'll be better off in the long run.

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