As economic news has worsened and recession appears inevitable, Americans’ spending habits have swung from one definition to another.
Spendthrift to frugal, in record time.
After years of free-spending and saying “charge it” at every turn, Americans are using words such as “scrimp and save” and “scrape up some cash.” Now, they’re cutting back on almost all fronts, regardless of how much they earn. According to a recent USA TODAY/ Gallup Poll, 55% say they’ve cut household spending as a result of lower prices in the stock market and fears about the economy. Just slightly more say they’ll spend less on Christmas gifts this year than last.
If you do it a little at a time, it doesn’t hurt you or the economy at all…in fact, it’s a good thing. I’m worried we’re deleveraging too quickly, though.
Frugality is good—and particularly fitting for Christians. Let’s be sparing towards ourselves and generous towards others.
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Jeffersonian [#1] rightly voices concern about how quickly our economy is “deleveraging,” as people cut back spending and pay down debt. But given how human nature works, we may not have much alternative. Kendall and others have for years been warning of the danger of overextending themselves. But millions of overextended borrowers became convinced of the danger only after the danger had already struck. Once burned, twice shy.
[blockquote]”Read it all. If this becomes a real trend, will it not be a good thing? What was it John Wesley said–earn all you can, save all you can, give all you can–KSH “[/blockquote]
Well, the budget committee at my church voted to slash all funding for outreach for the next year. If there had been a window, I would have jumped out of it.
The museum director of our small museum told me just now that she asked the city administrator for a $5 donation yesterday and he said no. He serves on the museum board.
Count me with Jeffersonian and Irenaeus – I’m concerned about the effect of everyone cutting back so much so fast. Will we shoot ourselves in the foot?
On a side note, I had to go shopping with my mom in recent weeks as she was looking for an item of clothing she really did *need* – I was amazed at the difference in the department stores we went to. Service was *back*.
[i] [Someone] asked the city administrator for a $5 donation yesterday and he said no. He serves on the museum board. [/i]
That’s disgraceful! Any senior public official can afford $5.
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[i] The budget committee at my church voted to slash all funding for outreach for the next year. If there had been a window, I would have jumped out of it. [/i]
Fortunately you didn’t, so we still get to read your comments. And if you give to this church, you still have the option of prayerfully considering whether to redirect some giving towards outreach.
I should have been more precise when I said “this” about what I meant. I meant the development of the habit of saving as a culture, which is something we have somehow lost and need to recover.
The concerns about how the deleveraging is occurring are ones I share. We haven’t been down this exact road before–it is a black swan scenario–so it is hard to know how to do it, especially when leaders cannot even agree on what to do.
I just hope going forward we take this as an opportunity for renewal. Frugality used to be considered a good thing; perhaps it may become so again.
[i] The development of the habit of saving as a culture, which is something we have somehow lost and need to recover. [/i] —Kendall
Despite the excesses we’ve seen in the United States since 1980, savings and frugality have historically been strong themes in middle-class culture. Someone once wrote that the (very) poor live in the present, the (old) rich live in the past, and the middle class lives in the future. There’s truth in that.