That is the question. It really hasnt been all that long ago when I was reading the McAlvany Intelligence Report how our greed and consumerism was wrecking the economy. We werent saving enough, we were spending too much, we were carrying too much debt. Nobody listened, though. We just kept spending and therefore, we were all guilty. It would be all our fault if the economy collapsed.
Well.it has collapsed and its all because of our free-spending ways. Okay, we got the message, and weve stopped spending. Were starting to save. Skip the dinners outcancel the vacations, rent a movie instead of going TO the movies. Shop for groceries at Walmart, Food Maxx, and Save Mart.or even the ninety nine cent Grocery Mart.
But now, were being told, its our LACK of spending that caused the collapse of the economy. Since consumer spending makes up two thirds of this country economic engine, we shut off the engine. Its all our fault! The only way to get the economy back on track is (here it comes) start spending again. Go back to our free-spending ways, break out the plastic and go for it.
An op-ed piece in the Chico News and Review by Nikki Schlaishunt implies that its time to start spending again, but just make sure you spend it locally. An op-ed piece in the Wall Street Journal implied the banks were bleeding, and by saving more, we could help stop the bleeding. So, whats a patriot to do?
In previous downturns, consumers mostly kept spending thanks to easily available credit from banks and credit card companies. So now, the Federal Reserve and Treasury Department are working together on massive programs to get the credit markets, corporate and consumer LENDING back on track. The terminology is UNCLOG the credit markets.
Sounds to me like were being told that its our patriotic duty to go back to our free-spending ways in order to save the country. Yet, it was just a couple of years ago when we were told greedy consumerism was wrecking it. So now, you should be thoroughly confused. I know I am!