While acknowledging that unemployment will continue to climb towards 10% of the work force, and that it may take several years for jobs lost to return, financial and news pundits have announced that the recession is ending.
This may be good news to millions of Americans that have worried about their job status, and it may help to lift the spirits of millions of Americans that have been laid off over the last two years, however, I wonder if we will fall back into the habit of consumption as before?
Americans have been saving more money than ever before, and I imagine that soon we will be asked to start spending again. Like the days after the 9/11 event, are we going to be asked to open our pocketbooks, for the good of nation and economy?
But do we really need to go back to motorboats, ATVs, new cars for a 16 year old, fast food toys, and stores filled with imported and cheap, merchandise again?
If we renovate our home, is it for larger rooms or to incorporate a new sustainable design?
Do we need to buy the newest model of high definition TV technology, or do we start to invest in a family greenhouse or water recovery system?
We have been good consumers in the past, going into debt from every conceivable hobby, interest, and toy sold to us. What we drive, where we live, the clothes we wear, influenced by Madison Avenue, sold to us by celebrity that we love so much, we gladly bought, spent, and increased our debts, just as we were told to do.
But during the last several years, millions of Americans have reduced their spending, while reducing debt, and saving more than ever before. Perhaps because of necessity, or perhaps because of fear, Americans were able to control themselves as consumers.
As Fall is about to begin, and with Winter around the corner, we will once again be asked to buy, buy, and buy. But does this coming Holiday Season have to be laced with the consumerism of the past? Or can we replace the "toys" of the past with the "tools" of the future?
I wonder.
Brett
Wednesday, September 16, 2009
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We need to get back to basics.
ReplyDeleteRandy
First, I doubt the recession has ended, and I suspect for most American it will only deepen. I've seen no evidence of recovery and the recent gains in the stock market seem to reflect reaction to news that's only slightly negative.
ReplyDeleteI suspect a new round of job cuts will be ignored, while some workers who had been laid off, may be rehired—under what terms, is anyone's guess.
And, if we don't buy, restock, return to our old spending habits, businesses will find ways to economize starting with more layoffs and shipping more work overseas. We're caught between a rock and hard place until the "new" economy picks ups.
Here's two articles that tell two interesting stories:
http://www.forbes.com/2009/09/24/home-solar-power-lifestyle-real-estate-solar-panels.html?partner=forbeslife_newsletter
&
http://online.wsj.com/article/SB125383160812639013.html?mod=WSJ_hpp_MIDDLTopStories
I suspect what we'll see accelerated is that the rich will grow richer, subsidized by the middle-classes, while the poor grow poorer.
There is little to gain from being pessimistic but
In case you missed this in September 26th, TIMES:
ReplyDeletehttp://www.nytimes.com/2009/09/27/business/economy/27jobs.html?th&emc=th