In Declining American Economy, Frugal is the New Cool

[Suzanne Sutton]

In Declining American Economy, Frugal is the New Cool

Forget the bling, the Hummers, the glitz and glamour: Frugal is the new cool in a declining economy where those who know best are tightening their belts. America is seeing a major restructuring of its economy as consumers hold back on their spending on everything....It's a brave new world in America, and the era of wild spending is over.

The downfall of the economy in 2008 was a major psychological shock to most Americans, who foolishly believed housing prices would go up forever and that nobody would really have to work for a living anymore (we could all live off our rising home values, people thought). Interestingly, this shock is taking people back to the kind of mentality this nation hasn't seen since the Great Depression, when frugal wasn't just cool it was necessary for survival!

See entire article: Declining American Economy

Suzanne

[GreatLakesGramma]

Unfortunately, the downside of everyone becoming frugal is that even more people lose their jobs. Then those people buy even less and more people lose their jobs, then THOSE people....

It's like a long line of dominoes falling.

[phkrause]

A catch 22. People continually getting paid more and more. Than asking people to take pay cuts but not lowering the cost of living, and so on with everything.

pk