Cheap is the new cool but will America stay thrifty?

[hegemony]

http://www.reuters.com/article/domesticNew...E56000C20090701

[Kevin20]

http://www.reuters.com/article/domesticNew...E56000C20090701

 

 

Yeah well, I'm not sure how much of this is people suddenly choosing to be thrifty and save as a virtuous habit, versus how much of it is people not spending money because they just lost their job, or they're not buying a house because they can't get a mortgage, or they can't sell the one they live in, or they just got foreclosed on.

 

The savings rate is impacted by people taking out mortgages, which equals a big whack of negative savings in one fell swoop. Fewer mortgages issued, better savings rate, voila.

[Anna81WA]

That is a great article...very true...it's "cool" to be frugal right now but how long will it last? I know I have to make some serious changes to my spending habits!

[frank22]

I think it will last by necessity. Credit Cards are cutting limits raising rates, and I don't think they will go as lax as they did in the past after we recover. Also I think this generation has learned a bit. Getting taking to the cleansers by having your rates raised and your limits lowered has left a bad taste in peoples mouths.

 

Also the huge increase in home values is just not there any more and also won't be for some time. I think this recession will lead to long term changes in behavior, which is good on a personal level.

 

Except that by not spending we prolong the recovery.

[athensgaguy]

This article totally convinced me that I need a new iPhone 3G S.

 

OTOH:

 

Yeager said it was discouraging that hopes of an economic recovery are pinned on consumer spending rather than manufacturing and production.

 

So you build things that no one buys and it improves the economy?

[Kevin20]

This article totally convinced me that I need a new iPhone 3G S.

 

OTOH:

 

Yeager said it was discouraging that hopes of an economic recovery are pinned on consumer spending rather than manufacturing and production.

 

So you build things that no one buys and it improves the economy?

 

 

Yep! I was thinking the same thing. Real brilliant to build a bunch of crap for which there is clearly no demand. Ask Chrysler. Or the Soviet Union.

 

Anti-consumerism sentiment easily goes too far. The whole, entire point of the economy is to organize resources so as to satisfy consumer demand. Everything else is a pure cost. Manufacturing for the sake of manufacturing is just spending money for the sake of emptying your wallet.

 

The prudent avoidance of too much debt you cannot afford does not change that basic reality at all.

[nothingtolose]

"We're very confused," Weber said. "We're told that saving money is good for the soul, it's virtuous to save money. On the other hand, we're told it's basically unpatriotic, it's like burning the flag, to cut up your credit cards."

 

the quoted person seems to imply that you can't save and use CCs

 

anyway, back on topic, I am guessing thrift lessons will fade when the next market bubble rolls around

Edited July 2, 2009 by nothingtolose

[Daddy]

Always was cool to be thrifty!!! I think it's cool to buy a $10,000 car if you make $50,000 a year rather than a $45,000 Navigator.

 

Great read. Thanks Hege!

[hurricanesfans27]

damn and I just bought a brand new camaro ss

[hegemony]

damn and I just bought a brand new camaro ss

 

I'd rather have a 1967

[Cactus Flower]

For myself, I think some of my thrifty habits will stick and others will not..........

 

I have always been into conserving energy... electricity and resources like water.

 

But I do like to eat out, and I like nice things. I do work my butt off for a reason. If I wanted to live like a pauper, I'd go work at McD's for 20 hours a week....

[hegemony]

For myself, I think some of my thrifty habits will stick and others will not..........

 

I have always been into conserving energy... electricity and resources like water.

 

But I do like to eat out, and I like nice things. I do work my butt off for a reason. If I wanted to live like a pauper, I'd go work at McD's for 20 hours a week....

I agree. One must have some enjoyment in life, within reason.

 

Remember the story of the janitor who saved 1 million dollars working 45 years. He left the money to a community college. The guy was amble to save that much by not having a phone or ever taking a trip. Sorry but I am not working 40 years of my life just to have money to give away when I am dead. LOL

[GEORGE]

For myself, I think some of my thrifty habits will stick and others will not..........

 

I have always been into conserving energy... electricity and resources like water.

 

But I do like to eat out, and I like nice things. I do work my butt off for a reason. If I wanted to live like a pauper, I'd go work at McD's for 20 hours a week....

CONGRATULATIONS...you saved so much water that everything in your yard is almost dead and we are going to make you save even more because our rates are going to go up BECAUSE of lact of revenue

 

That is what they did to us in CA LA/ORANGE COUNTIES

Edited July 2, 2009 by GEORGE

[TroyP]

For myself, I think some of my thrifty habits will stick and others will not..........

 

I have always been into conserving energy... electricity and resources like water.

 

But I do like to eat out, and I like nice things. I do work my butt off for a reason. If I wanted to live like a pauper, I'd go work at McD's for 20 hours a week....

 

I'm with ya.

 

When I realized I was in deep with the CCs a few years back, I became VERY thrifty. Now I have a bit of student loan debt, and nothing else, plus I make about 50% more money. I'm not as frugal as I once was (because I can afford not to be), but I still save more than 25% of my net pay.

 

I use CCFL lightbulbs because they pay for themselves in less than a year, and they're cheap at Wal-Mart. I bought a more fuel efficient car. Why waste the money on electricity and gas when I can spend it on steaks at Costco or drinks at the bar?

 

That said, I waste tons of money on stupid things... but I enjoy the stupid things, and I can afford to splurge here and there.

[cb_opus]

damn and I just bought a brand new camaro ss

 

Good for you! I finally got to see one up close. Very cool.

 

I was really pleased that they didn't stray too far from the concept.

 

Have fun driving it!

[Uncle Leo]

damn and I just bought a brand new camaro ss

I'd rather have a 1967

For Camaros I'm partial to the 1971, but I'm with ya in sentiment.

 

I'd really rather have a 1968 Malibu SS.

[Uncle Leo]

Human nature dictates: The "new thrifty" will last until people feel secure and immune again.

[LBCS]

Human nature dictates: The "new thrifty" will last until people feel secure and immune again.

 

Yup

[hurricanesfans27]

damn and I just bought a brand new camaro ss

 

I'd rather have a 1967

 

 

those cost more than the new ones now

[hurricanesfans27]

damn and I just bought a brand new camaro ss

I'd rather have a 1967

For Camaros I'm partial to the 1971, but I'm with ya in sentiment.

 

I'd really rather have a 1968 Malibu SS.

 

 

 

 

I preferred the 70 Malibu SS I had one ..

[athensgaguy]

Well, the article worked. I now possess a shiny new iPhone.

 

I'm not sure how the discussion turned to old cars, but if I was getting a car from early '70s, I'd want a classic 911.

[caffeinekid]

Thrifty doesn't keep people employed, in fact it has just the opposite effect. So I am not as much for "thrifty" as I am for capital investment in communities, whether through businesses or consumer habits. And I have NEVER thought cheap was cool.

[hegemony]

Funny. Flying into Denver the other day I noticed all the McMansions with dead lawns.

[athensgaguy]

Funny. Flying into Denver the other day I noticed all the McMansions with dead lawns.

 

It's been about a month since they let us in GA start watering our lawns if we want. First time in 3 years.

[hegemony]

Funny. Flying into Denver the other day I noticed all the McMansions with dead lawns.

 

It's been about a month since they let us in GA start watering our lawns if we want. First time in 3 years.

I figure most of them were foreclosures. many of the pools were dark green.