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As crazy as it sounds, being frugal in tough times further helps to deepen the crisis. As more people turn to self reliance, more businesses are hurt, more jobs are cut and so down the toilet it goes.
In U.S., the new frugality has unintended consequences
All of these consumers could praise themselves for their newfound frugality in the midst of an economic downturn. But every step they take toward self-reliance - each shrub they prune themselves, each cupcake they bake from scratch - hurts the individuals and small businesses that have long provided these services.
However the part we are missing here is our notion that we can become the worlds greatest economic power by doing each others laundry and washing each others cars.
The idea of moving to a service based economy sounds grand, as there is no need to get as dirty, you get to wear a cute uniform like at Burger King or Best Buy, or just toss on a used walmart plasti-bag and greet folks as they walk in the door.
However we make less and less things, so while I wash your car and you mow my grass, I buy my sponges from Greece and you buy your lawnmower from China. In the end, you and I exchange money back and forth but the real winners here are the folks in Greece and China to took something raw and added value to it, there by creating wealth. Multiply this over a massive scale while at the same time outsourcing middle white collar jobs, manufacturing, and the rape of the country by multinational corporations through exploitation of tax shelters, use of cheap labor abroad, and government bail outs and you arrive at what is left of Main street.
So while being frugal will contribute to a quickening spiral of a corrupted, rotted and festering puss filled boiled we call our economy, at least on the bright side, you can learn to can food, maybe even hunt, improve your diet through caloric restriction, and maybe even a future making furniture out of old car parts or something.
Hey, I would just like to see "made in America" on a few more things is all. Cannot continue to consume as such rates without creating wealth through manufacturing of things or the creation of new technologies.
You might see "Made In America" on more items if our government would get out of the way of business.
I think were headed in the opposite direction and what little is left being produced here will be labeled "Made By The U.S. Government"
Hey, I'm all for cutting some of the fat in government spending. It is also the reason why I didn't vote for McCain or Obama, as both seemed bent on spending themselves silly and us to Hooverville.
Quote:
Originally Posted by NewToCA
Here you go Topper, the process has already begun:
Ok, I may be a dumb ole hillbilly, but that is pretty tacky. However, I have to give kudo's because at least they are creating wealth through recycling. Bravo!
I actually have a "home grown" project in the works to create wealth myself, just waiting to hear back on the licensing requirements from the state of Tennessee.
TnHilltopper... you are mistaken... you are right in some aspects but you choose to ignore the simple fact that most Americans are overburden with debt... yes, its true that you want to "spend" your way out of the recession IF Americans are NOT overburden with debt OTHERWISE you are throwing gasoline into the fire... so the Keynesian approach is wrong in this case... not only that, the government is too much in debt as well... yes it will hurt people, but at least it saves the country, you can't save everyone TH.. not matter what the liberals tell you...
TnHilltopper... you are mistaken... you are right in some aspects but you choose to ignore the simple fact that most Americans are overburden with debt... yes, its true that you want to "spend" your way out of the recession IF Americans are NOT overburden with debt OTHERWISE you are throwing gasoline into the fire... so the Keynesian approach is wrong in this case... not only that, the government is too much in debt as well... yes it will hurt people, but at least it saves the country, you can't save everyone TH.. not matter what the liberals tell you...
I posted that in part based on previous discussions on this subject. Even with my limited understanding of macro-economics, I understand the logic of needing to keep the economy working and to do that requires spending.
I also realize that most people are up to their ears in hock. I have almost 0 debt, but I can't anymore tell people to spend wisely or to save money than I could convince John Hagee that dinosaur saddles were made of sheepskins.
I don't believe there is any single solution to our problems and as it is looking now (I hope I'm wrong) that it is going to be every man for himself for a while. Dog eat dog, strong shall survive type mentality. Just glad I keep a well stocked pantry and plenty of ammo on hand.
As crazy as it sounds, being frugal in tough times further helps to deepen the crisis. In U.S., the new frugality has unintended consequences
Spending is what got our country in this mess to begin with. We spend more than we earn. Americans spent their home equities, loans, credit cards basically all the money that was readily available these past 8 years or so. Not only is our government in debt so are the people. Spending will not get us out of this mess when no one has "their own" money to spend.
It's going to be painful but we have to get away from being such a spoiled society where we think we deserve it all "right now". I don't think frugality is bad at all. It teaches people responsibility, which we are sorely lacking in, and how to be self sufficient.
It's time for us to grow up and stop being spoiled children.
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