If economy is so bad, why so much consumption? (bankrupt, loan, small business) - Economics - Page 2 - City-Data Forum

Nepenthe · 07-01-2010, 10:33 PM

I live in and around the western part of the DFW metroplex and I'm pretty sure there's no decline in the visual signs of consumption between, say, summer 2007 and summer 2010 as far as restaurants, shops, malls, roads, etc. Actually here in Southlake/Keller, it gets busier and more consumptive by the month. Almost everyone I know is doing quite well. I'm buying a motorcycle on Saturday.

Sure, you can say we're all screwed, everyone's on credit, we're all lemmings about to fall off the cliff, the end is near, etc. You could say people are still shopping but buying less, doing more window shopping, etc. You could say it's all arrogant la la live for today crass consumerism built on a house of cards. But in outward appearance this looks unlike a depression, unlike a recession, and if anything more like a boom.

stars99 · 07-02-2010, 12:04 AM

Quote:

Originally Posted by Nepenthe

I live in and around the western part of the DFW metroplex and I'm pretty sure there's no decline in the visual signs of consumption between, say, summer 2007 and summer 2010 as far as restaurants, shops, malls, roads, etc. Actually here in Southlake/Keller, it gets busier and more consumptive by the month. Almost everyone I know is doing quite well. I'm buying a motorcycle on Saturday.

Sure, you can say we're all screwed, everyone's on credit, we're all lemmings about to fall off the cliff, the end is near, etc. You could say people are still shopping but buying less, doing more window shopping, etc. You could say it's all arrogant la la live for today crass consumerism built on a house of cards. But in outward appearance this looks unlike a depression, unlike a recession, and if anything more like a boom.

It seems like a boom in Orlando too.

email_lover · 07-02-2010, 06:37 AM

Consumption is down 1-3%, which is not noticable to the naked eye just to the Accountant.

LeavingMA · 07-02-2010, 07:14 AM

Quote:

Originally Posted by stars99

Lately, when I've been out to a restaurant, there are usually lots of other people there. And the new IPhone has set record sales. How can people afford these things if we're in a depression?

I wasn't that old during the recession in the early '80s, but I hear that the restaurants were dead during that time. What makes this different?

Yea, the Iphone did well but most of that is your diehard people that will buy whatever apple puts out the day it comes out. If apple put out dogpoo with their name on it some of these people would still buy it.

I have friends that don't make a lot of money but everytime a new gadget comes out they go out and pay full price and buy it. These are the same people who buy a new car every 2 years or so because they need the newest thing.

HappyTexan · 07-02-2010, 07:26 AM

My brother is one of those diehard new gadget guys along with the new car every few years.
But you know what..he has literally no savings. He's not living paycheck to paycheck mind you but if he would just quit having to "keep up with the Jones" for a few years he could have some nice stash of savings and investments. He has his recommended 6 months salary saved off but other then that he lives the good life.

Outward expression of wealth via consumerism doesn't necessarily indicate that all is well and people are financially thriving. None of us really know the debt level of these types of folks.

As they say..looks can be deceiving.

stars99 · 07-02-2010, 07:57 AM

Isn't the IPhone $100/month for service? I don't know why anyone would want to pay that much for cell service unless they were financially secure.

Philip T · 07-02-2010, 08:08 AM

Quote:

Originally Posted by email_lover

Consumption is down 1-3%, which is not noticable to the naked eye just to the Accountant.

True enough. Anything below zero is less -- and compounded across many years is a lot less.

Winds up biting double hard in any models that planned or required positive growth.

I follow it is popular to say "when things pick up" but this may be a new long-term condition of the way things are.

Anyone do or now of studies of long-term growth at Zero or slightly negative for year-on-year-on-year?

stan4 · 07-02-2010, 08:10 AM

Also, don't forget that the government and media will make this out to be worse than it is so they can push through their agendas.

Philip T · 07-02-2010, 08:20 AM

Quote:

Originally Posted by stan4

Also, don't forget that the government and media will make this out to be worse than it is so they can push through their agendas.

Or make out that things are better than they is so they could continue doing what they want.

Same nonsense, different side.

BigDGeek · 07-02-2010, 10:31 AM

Quote:

Originally Posted by HappyTexan

My brother is one of those diehard new gadget guys along with the new car every few years.
But you know what..he has literally no savings. He's not living paycheck to paycheck mind you but if he would just quit having to "keep up with the Jones" for a few years he could have some nice stash of savings and investments. He has his recommended 6 months salary saved off but other then that he lives the good life.

Outward expression of wealth via consumerism doesn't necessarily indicate that all is well and people are financially thriving. None of us really know the debt level of these types of folks.

As they say..looks can be deceiving.

I'd rather make do with what I have and save. You never know when disaster will hit; I could lose my job, I could have a serious illness or accident that would not allow me to work for an extended period of time; I could have a serious structural problem with my house that insurance won't cover; all sorts of things could happen. You have to be prepared for that.

Keeping up with the Joneses is silly and immature.