{ 3 comments… read them below or add one }

1 Miranda January 14, 2009 at 7:48 am

This is a prime example of the disconnect that has come in our economy: What is good for the individual is not good for the whole, and vice versa. Our economy runs on debt-fueled consumer spending, so when consumers are beholden to the chains of debt and interest, the economy gains. That is our current problem. Debt-based consumer spending cannot continue unsustained, so instead of changing our economic model, our leaders are trying desperately to keep things as status quo as possible.

2 Blake January 14, 2009 at 9:17 am

Ah yes, the ‘Paradox of Thrift’. Our economy certainly would be stimulated more with continued cheap credit and enormous amounts of deficit spending, but in the long-run it’s completely unsustainable.

In the short-run, a shift to a more thrifty, frugal economy will be painful for many. Over time though, it’s the only way to achieve financial and economic prosperity.

3 Scott January 14, 2009 at 9:55 am

@ Miranda

It makes me wonder if the “hot” gift for Christmas 2009 will be piggy banks. Probably not, but I hope more people will start to rethink saving money.

@ Blake

A frugal economy will hurt many, especially those families that require two incomes to survive. I guess the question will be, how long will the pain last?

Leave a Comment

Previous post:

Next post: