I rec'd this in an email today - sobering, isn't it?
"After years of buying gadgets, cars and whole wardrobes on credit, the
gravy train has stopped. Not only has it stopped, it's derailed and is
hurtling off of a cliff. Many people have locked up their purses and
wallets, cut up their credit cards and stopped spending money. American
consumers are spent.
Every day it seems we are bombarded with a slew of figures detailing the
low level of consumer confidence and how this holiday season is going to
be one of deep discounts and little buying. Already, the list of stores
that are closing reads like a who's who of chain retailers, like Circuit
City and Linens-n-Things.
Many people are eating out less, forcing them to cook dinner and actually
talk to their families. Some aren't getting 900 channels on their
televisions, so they're playing games, going for walks or reading. Others
are putting money into savings accounts, meaning that when they want to
buy a gadget, car or clothes, they will be spending money they have
actually earned.
How dare they!
The media would have you believe that this is a terrible thing. Maybe I'm
old-fashioned, but I was taught to save, invest and live within my means.
This means buying a house with a substantial down payment and not
overextending credit. Apparently, I'm in the minority on this one.
Now, I certainly don't want our economy to go up in flames or grind to a
painful halt, but I can't help but think that this reduction in spending
is a good thing, at least in part. For years, many American consumers have
made shopping into a hobby, some going to the mall weekly, or even daily,
to purchase (mostly unneeded) stuff. I was beginning to worry that bargain
hunting would become an Olympic sport.
So it's only natural that eventually the tide would turn, that American
consumers would put the brakes on and stop overspending. It makes sense
that after years of living on credit and not saving a dime, many American
consumers would stop, take stock of things and realize that such a
lifestyle can't be sustained indefinitely.
But things can go too far in the other direction just as easily. Not
spending is not healthy for our economy, it will put people out of work
and eventually the wheels of commerce will stop turning. While I might
think that a return to a more conservative way of spending is a good
thing, I wouldn't advocate a total end to the modern age of consumerism.
What we need is to find a balance between overspending and not spending.
Maybe a whole new wardrobe isn't necessary every season, but having a few
new pieces of clothing probably won't break the bank. It's striking that
balance that's going to help lead the U.S. economy out of the rut we've
gotten it into, and, more important, keep us on a sustainable growth path
going forward. OK, rant over."
Sas
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Originally Posted by Pam
12/02
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