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Catching Up
By Daphne | February 28, 2008
The general population has finally gotten around to realizing that people are giving up little luxuries, which were believed to be necessities by some, because of the price of gasoline and the uncertainty of the economy.
Plus, stores are pulling back and scaling down.
Imagine that! When people buy less the stores are affected. The stimulus package isn’t going to really do a lot to help the general population.
USA Today has a story addressing consumers cutting back where they can. Small things like quick food restaurants and daily coffee drinks are going by the wayside for now. Even things like energy bars.
I never really considered a cereal bar a luxury, nor did I know that they cost almost $2 each. I’m sure that the same bar might be cheaper elsewhere, just like candy at the movies is a lot more expensive. Giving up Starbucks (or any other place’s coffee drink) could definitely make you pause but I think there is still a place for a treat. [I am a coffee drinker, drip, black, so when I do go to Starbucks I’m not getting a mocha or a cappuccino.] Even buying regular drip coffee daily can be expensive.
“The new status isn’t how much you’ve got, but your ability to show what you don’t spend,” says futurist Watts Wacker, who advises businesses on trends.
“This is a seminal moment. It’s not a fad that will die out when the economy picks up.”
I disagree. It would be nice if everyone made a serious change and started living within their means and saving up for some special items to regain a real sense of luxury but I don’t think everyone will really cinch up and stop spending as much for the long run.
When the economic crisis passes, those who were somewhat insulated from this economic episode will want to buy some things or when the economy improves, the little things that people are taking out of their daily lives will be easily inserted. They may make a switch and pay for these new treats with cash or add an additional nail or hair appointment.
In an ideal world people would live within their means but GREED makes people want what others have and when the economy improves and people aren’t as tense about their financial situation they will want to treat themselves.
The retailers are still trying to get people to buy, what you need to ask yourself is: Can afford it without cheating my savings or getting further into debt?”
If more American consumers had asked themselves that question before now, then we wouldn’t have as much credit card debt as we do.
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Topics: February 2008 |