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Frugality is more popular because people dont have as much. Sure they have money for little things like Starbucks or cellphones, but not for new cars or housing. I remember when it was rare for someone five years out of college to still be living with parents, but very common today.
The word is from the Greek oikonomia "household management and thrift". While it is certainly true that many parts of the present day economy depend on consumption and people buying Apple Watches and iPhones, the economy is badly hurt by lack of saving, indebtedness, and bankruptcy.
I think you will find that frugality will never become so pervasive that it will replace consumption.
I think you will find that frugality will never become so pervasive that it will replace consumption.
Precisely, and the OP explains why. This is also why efforts to be frugal is so challenging. As the need for frugality increases in step with the decline in real dollars of lower and middle class incomes, we naturally see a strong inclination toward frugality. In turn, we naturally see the system itself responding to that stimulus with the undercutting of once-legitimate and reliable vectors for frugality. In other words, as more and more people need to be more and more frugal to make ends meet, we are seeing and will continue to see an erosion in our ability to be frugal.
This is such tiresome nonsense. In the short run, frugality hurts the economy. In the long run, it helps it. Consumers are less vulnerable to economic downturns if they have savings and aren't in debt over their eyeballs. It is amazing how people completely neglect to see that the 2008-2009 recession was caused by a complete lack of frugality on the part of so many people.
This is such tiresome nonsense. In the short run, frugality hurts the economy. In the long run, it helps it. Consumers are less vulnerable to economic downturns if they have savings and aren't in debt over their eyeballs. It is amazing how people completely neglect to see that the 2008-2009 recession was caused by a complete lack of frugality on the part of so many people.
Amen to that! Finally someone who get it. Thank you Mystical, this thread should be locked right here.
It's a zero sum game. Everyone with whom I associate either save or eliminate certain items so they can purchase things they could not otherwise afford. The net" in and out flow" is the same. It seems everyone blames the "savers" for the poor economy but ALL of those savers will eventually spend those savings on something - be it an unforeseen emergency, large purchases or restructuring everyday purchases.
IMO - the real tragedy is when one of these events occurs and you have to go to the "Money changers" and get a loan. The interest paid for these items just adds to the purchase price and only lines the bankster pockets.
There should be no reason to get a loan unless you can recover expenses associated with the loan by making either making more money with the proceeds or hopefully break even. JMO.
It's a zero sum game. Everyone with whom I associate either save or eliminate certain items so they can purchase things they could not otherwise afford. The net" in and out flow" is the same. It seems everyone blames the "savers" for the poor economy but ALL of those savers will eventually spend those savings on something - be it an unforeseen emergency, large purchases or restructuring everyday purchases.
IMO - the real tragedy is when one of these events occurs and you have to go to the "Money changers" and get a loan. The interest paid for these items just adds to the purchase price and only lines the bankster pockets.
There should be no reason to get a loan unless you can recover expenses associated with the loan by making either making more money with the proceeds or hopefully break even. JMO.
It's not really a zero sum game because frugality can occur via real consumption of physical resources being reduced below the production of the same resources. This allows capital to be diverted to investment in training, infrastructure, technology, etc. because it is not needed to fulfill immediate consumption demands for things like food, clothing, shelter, and medical care.
It's not really a zero sum game because frugality can occur via real consumption of physical resources being reduced below the production of the same resources...............
Not sure I understand your comment but if you are saying that being frugal will cause the production of certain goods to be no longer created because the demand is less than the cost of production then the product will cease to exist as it should be.
If the demand is present, the price will be adjusted to reflect the competition for that product. I think that is the way the market should work. I think I may have missed your point, I apologize.
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Zero Sum Game
