some good news mingled with more wackonomics
Quote:
The New Frugality: Americans return to thriftiness
By DAN SEWELL, AP Business Writer
Frugality is making a comeback.
Fearful that economic conditions could get worse and stay that way, Americans are showing an enthusiasm for thriftiness not seen in decades.
This behavioral shift isn't simply about spending less. The New Frugality emphasizes stretching every dollar. It means bypassing the fashion mall for the discount chain store, buying secondhand clothes and furniture, or trading down to store brands.
There's more business for repairmen and less for salesmen. Consumers are clipping more coupons and swiping their credit cards less.
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That kind of scrimping may be good for stressed family budgets, but it's bad for the nation's overall economy — and that has the potential to reinforce the miserly mood. Yet with home prices, 401(k)s and job stability suffering, such frugality is likely to be more than a fad.
"It is a whole reassessment of values," said Candace Corlett, president of the consulting firm WSL Strategic Retail. "We've just been shopping until we drop and consuming and buying it all, and replenishing before things wear out. People are learning again to say 'No, not today.'"
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Americans are saving more, consuming less, and ala John Maynard Krugman, prudent living is deemed bad for the economy. This notion that a good economy is built by shopping is such a horrible misconception. It is akin to saying that while it may be good for the economy to spend $1,000 to dig a useless hole in the ground, it is 10x better to spend $10,000 to dig a useless hole in the ground. Babbling nonsense, wackonomics.
Economics is about the efficient use of scarce resources -- getting more out of every dollar is good for the economy, Keynsians and Krugmans are wack.