Increased Spending — The Bump
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Increased Spending

Curious as to what ya'll think.  I am seeing articles about "increased consumer spending".  Not really seeing people get better jobs or better pay, though.  Or any job for that matter.  Do you think people are really starting to somehow miraculously have more money to spend on retail items or do you think people are just tired of not shopping?  Or maybe they are just bored on unemployment so they go shopping.  Or maybe their old stuff just finally broke beyond repair and they have to spend money on replacements?

Maybe the increased consumer spending is "good" but I don't see how it can last if there is still such high unemployment.  Just curious as to how this even makes any sense as I am not an economist.  Maybe the prices are just finally right.  I have no idea.

Re: Increased Spending

  • I've wondered this too. I think a lot of people go out and spend money when they are depressed or feeling low, thinking it will help them feel better when really it is only a temporary boost. I think a lot of people just kind of go into denial about their finances and go slap stuff on credit cards, not thinking about the fact that they have to pay it back plus a crapload of interest!
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  • Maybe it has to do with the sales. I think people have become better bargain hunters, and a lot of things people have been wanting are beginning to get cheaper.
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  • I also think a lot of people who had jobs and were not overly affected by the recession stopped spending just in case or felt that no spending was what they "should do". Now that signs are pointing up, they are going back to their typical spending patterns.
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  • imageJoelsGirl07:
    Maybe it has to do with the sales. I think people have become better bargain hunters, and a lot of things people have been wanting are beginning to get cheaper.

    I agree with this comment and also it might be attributed to Income Tax Returns.

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  • imageMylittlehill:

    imageJoelsGirl07:
    Maybe it has to do with the sales. I think people have become better bargain hunters, and a lot of things people have been wanting are beginning to get cheaper.

    I agree with this comment and also it might be attributed to Income Tax Returns.

    .

    I hadn't thought of the tax return thing.  Good point.

    I also agree with Nozze's POV.  Folks who feared losing their job may not feel that way any more and/or they may have been saving long enough for their rainy day fund.

  • Down here in FL, people are shopping like crazy. The restaurants are packed. I don't think it's all tourists either.  In addition, everyone is driving around in these crazy-expensive cars (hummers, corvettes, ferraris).  The job market here is awful and their home prices have plummetted big time.  Ex. paid $1 Million for house and it's now worth $400K.

    All of this leads me to believe that they are all in debt up to their eyeballs, just like that commercial.

  • I'd say it's a combo of things....we stopped spending and were putting every spare dime toward debt when the economy started tanking because we wanted to be in a better position just in case one of us lost our jobs...we've paid off debt and may be spending more just because we're not tracking every single penny as closely as we were before. Plus, with a baby, I know we NEED to buy stuff....we're being picky/choosy, but it's still probably more than we'd be spending on ourselves.
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  • Shopping is therapy. Its a quick pick-me-up. So, it makes sense. But just because people are spending, doesn't mean they have the money to spend. They are likely just getting deeper into debt.

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    Abigail Taylor 09.18.2008


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