byrnemm

Consumers and the Economy Are Down and Out

I cant say I completely understand the level of shock this news brings.

You simply cannot expect people to spend and save at the same time.

Let me repeat: You cannot spend and save at the same time.

Obvious right? One takes away from the other? Well for almost a decade now middle America has been bombarded with marketing - not just from retailers but from its own government and the economic elite -telling us that spending our money is good for America. Now it turns out that saving our money would have been better for us and better for America. Compounded interest in a Roth IRA or a home that we have to stretch to afford? Save money for a downpayment or go on a family vacation? Buy a used car or lease a new one? Buy the amazing commodity with the credit card or buy the decent commodity with the debit? These are the kinds of decisions that middle America has faced in the last decade.

The worst part of it all is that middle America is NOT taught personal finance in highschool, we do NOT hold MBAs, and we do NOT maintain an overview of the macroeconomic health of our nation - yet were told by those that DO have MBAs and PhDs and hold the highest positions in the economic world, those who have the responsibility to oversee our economic health - that our spending would bolster the economy and strengthen the nation. GOOD CALL. The American consumer has lost a great deal of purchasing power and has found themselves in a position where he or she is beyond their means and must now retreat to the piggy bank.

Sorry for any anger. I am not trying to put off the blame from the American consumer, BUT those in positions of trust regarding the economic health of the country emphasized the need of the American consumer to spend his money, so how can we be surprised to find out that they did?