dw57

Maybe the "New Frugality" isn't a sure-thing culture shock, says James Surowiecki. Could be that people are spending less just while they have less - and not even that much less. Most of the consumption drop can be traced to gas and cars, and spending's been rising for four months.

another possible reason for the new frugality becoming permanent. part 1, the boomers are starting to retire. years ago many were worried about needing new employees (they fixed that by sending jobs offshore). well now they are more concerned with saving for retirement (or making up for that big hole that just showed up). part 2, the follow on generations make a lot less than the boomers (and make less when compared to the same boomers at the same age). so they spend a lot less. combine that with different spending habits ( they tend top be more interested in electronics as opposed to transportation). you will end up with a lot less spending (as electronics tend to drop in price over time)