The cover of this morning's USA Today has an article that I think is important to consider. Taking into account the world's economic crisis - what do you think Americans are doing to ensure their future security? Do you think they are saving money or putting back supplies in case the crisis becomes septic? Do you think they're preparing for another depression?

No.

I'm going to attach the article, but here's a recap:

1) Consumers spent 93.1% of their post-tax income on goods and services in the third quarter.
2) Americans are now spending more on "Quality of Life" items than before. Examples include pet products, and spectator sports.
3) Americans are buying more "prestige" items.

Spending has INCREASED on:

* Games & Toys
* Computers
* Cable & Satellite TV Service
* Spectator Sports
* Amusement Parks
* Salons & Grooming
* Package Tours
* Eating Out
* Restaurant Meals with Alcohol
* Wine
* Hard Liquor

Spending has DECREASED on:

* Repairing appliances
* Repairing furniture
* Repairing clothes
* Repairing shoes
* Repairing vehicles

So, summarized, IN SPITE OF the current economic crisis people are NOT taking care of what they already own or stockpiling supplies. They are drinking, going to sporting events, eating out, and buying consumer crap.

Is it safe to say that those who are preparing will be BOMBARDED by those who wasted their money when something happens? I think yes. [color:"red"]These people are AVOIDING facing reality by playing with toys, going out like the financial future of our country is secure and drinking instead of facing the hard reality that our situation is getting WORSE not better!!![/color]

General society is NOT taking the current world wide economic crisis seriously.




What happens when WalMart runs out of bread, milk and eggs? What are the masses going to do?

Quote from article:

[color:"red"]"Consumers are rewarding merchants who entertain them, save them time and make them feel and look good now rather than later.

What's different: People are accumulating less stuff - houses, cars, lamps, clocks. This money was saved early in the economic downturn but is now flowing to services and small items that can immediately boost a person's happiness."[/color]

INSTANT GRATIFICATION without accumulation of REAL GOODS. That's how Americans are responding to the threat of a complete financial break down.

This bodes very poorly for those of us that are accumulating real goods - those items that satisfy the most basic of human needs: FOOD WATER SHELTER DEFENSE - because we will be viewed with scathing animosity by those who didn't prepare.

Does anyone remember the Aesop's fable "The grasshopper and the ant?

[color:" blue"]Once there lived an ant and a grasshopper in a grassy meadow.

All day long the ant would work hard, collecting grains of wheat from the farmer's field far away. She would hurry to the field every morning, as soon as it was light enough to see by, and toil back with a heavy grain of wheat balanced on her head. She would put the grain of wheat carefully away in her larder, and then hurry back to the field for another one. All day long she would work, without stop or rest, scurrying back and forth from the field, collecting the grains of wheat and storing them carefully in her larder.

The grasshopper would look at her and laugh. 'Why do you work so hard, dear ant?' he would say. 'Come, rest awhile, listen to my song. Summer is here, the days are long and bright. Why waste the sunshine in labour and toil?'

The ant would ignore him, and head bent, would just hurry to the field a little faster. This would make the grasshopper laugh even louder. 'What a silly little ant you are!' he would call after her. 'Come, come and dance with me! Forget about work! Enjoy the summer! Live a little!' And the grasshopper would hop away across the meadow, singing and dancing merrily.

Summer faded into autumn, and autumn turned into winter. The sun was hardly seen, and the days were short and grey, the nights long and dark. It became freezing cold, and snow began to fall.

The grasshopper didn't feel like singing any more. He was cold and hungry. He had nowhere to shelter from the snow, and nothing to eat. The meadow and the farmer's field were covered in snow, and there was no food to be had. 'Oh what shall I do? Where shall I go?' wailed the grasshopper. Suddenly he remembered the ant. 'Ah - I shall go to the ant and ask her for food and shelter!' declared the grasshopper, perking up. So off he went to the ant's house and knocked at her door. 'Hello ant!' he cried cheerfully. 'Here I am, to sing for you, as I warm myself by your fire, while you get me some food from that larder of yours!'

The ant looked at the grasshopper and said, 'All summer long I worked hard while you made fun of me, and sang and danced. You should have thought of winter then! Find somewhere else to sing, grasshopper! There is no warmth or food for you here!' And the ant shut the door in the grasshopper's face.

It is wise to worry about tomorrow today. [/color]

I wonder if perhaps the reason some frivolous spending is occurring is the fact that the majority of the population is reaching retirement age.

Don’t get me wrong I know most people piss away their incomes. Generation X in particular. Age wise I am on the edge of X and Y. I am a commercial loan officer and a lot of stuff comes across my desk. It is scary how many young couple who make 200-500k a year have so very little to show for it in terms of equity.

Hell any goods have some value. TV and vacations while of value can't be borrowed against.

Do you see a lot of younger couples making 200-500k?

I made a lifestyle shift recently. I grew up the son of a scoutmaster and much of my childhood was spent outdoors on camping, hiking, and canoe trips. I used to spend much of my free time shooting my bow, hunting for rabbits, or practicing tracking and identifying animals and birds. Fast forward a few years into my teens, these wholesome activities were replaced by video games, chasing girls, etc. After highschool when off to college I still occupied much of my time with this nonsense. Well after living in a city for 5 years my life came back in full swing to these activities of my childhood. I found that I spent most of my time hiking and trail riding and less of my time immersed in my urban surroundings. I yearned for open space and less faces. So I moved to the mountains, I sold my electronics and dvds and replaced them with the means to carry on my outdoor hobbies that I loved so much as a child. Archery supplies replaced x-boxes. Bussekin replaced dvds. Its been great being out in the wilderness again, I'm getting back in touch with nature and focusing on what is important, lessening the electronic distractions and replacing them with the basics essentials of life.
/end rant.
J

Jaytok, forgive my inability to quote it but there is a Bible verse that essentially says:

Raise up your son in his youth IN the ways he should be and in his older age he will return to it.

Sounds to me that is what you have done. Bravo!

Well, as a commercial loan officer I am not interacting with people who are just looking to buy a house.

I don't make much money and I am so grateful/thankful to the Lord for the money I do have. I don't even consider it earned but all a gift.

Anyway, I am amazed at how many young, and by young I mean being in their 30s and early 40s, who do make some pretty good cash. Young densists, MDs and various business owners making 250ish.

There are just as many people who make 35k though too. All pre tax of course ; )

Spending tends to go up on immediate gratification items during bad times, its a way for people to forget their crummy lives.

The irony is that the money in this instance goes toward the big businesses (and their pocket politicians) who are robbing us in the first place.

I think its ok to spend your money, but I try to make an effort to spend it in places that goes back into my local economy with companies who are intent on using my money to pay local workers and their own taxes. Keeping money changing hands but staying in the hands of local consumers will be crucial in pulling the economy back out. After all, if every body hangs onto their money, the economy won't get better.

As a result I avoid large businesses who avoid paying their taxes and who sends a lot of money into stockholder pockets or countries that my money doesn't come back from. Like Walmart, McDonalds, etc. And instead I spend my money with small and/or local businesses.

Interesting discussion. I have not read all the posts, but I can assure you it is not only America going through this. It is happening in our country (South Africa) as well IMO.
Especially under the richer income class. I have seen the oposite in lower income classes.

This is my opinion outside of USA and how USA is portraid through telivision: who you are is difined by what you own in luxury items. If you don't own the newest gadget,clothing, latest hollywood trend as advertised you are lame and not worthy to a certain extent.

I must be an unworthy old red neck, because all I want to buy is guns and knives. <img src="/ubbthreads/images/graemlins/grin.gif" alt="" /> <img src="/ubbthreads/images/graemlins/wink.gif" alt="" />