NY Times - "Americans Doing More, Buying Less, a Poll Finds"

[TomCADem]

http://www.nytimes.com/2010/01/03/business/economy/03experience.html?hp

MIAMI — Rosario and Igor Montoya used to buy, buy, buy for themselves and their two children without a second thought. Expensive sneakers, a new laptop, Legos — they all got what they wanted. But with the recession slashing the Montoyas’ workload and income by more than half, their priorities have shifted from products to activities.

After school and on weekends, the family now hops into a pink canoe they bought secondhand. They paddle though Biscayne Bay to nearby islands, naming each, sometimes making boats out of sticks and leaves.

“I’m trying to teach the kids that you don’t need to have expensive toys to have fun,” said Mr. Montoya, 47, an artist and freelance art director in advertising. “You can make it fun, from anything.”

Quietly but noticeably over the past year, Americans have rejiggered their lives to elevate experiences over things. Because of the Great Recession, a recent New York Times/CBS News poll has found, nearly half of Americans said they were spending less time buying nonessentials, and more than half are spending less money in stores and online.

[msongs]

1. interest rates are lower than the inflation rate - work and save are punished in the USA lol nt

[TomCADem]

2. That May Be True, But A Poor Excuse For Not Saving IMHO

Indeed, the fact that many Americans shared this attitude of seeking immediate gratification, rather than saving for a down payment, a vacation or retirement may help feed inflation. Conversely, if people spend less, the economy remains slow, but also inflation is held in check, because people are simply buying less.

My personal attitude is to try live within my means, but if folks want to spend more than make, that is their choice. I do think it is a positive development that more folks are rediscovering the value of experiences over "stuff."

Nonetheless, I think that Republicans will not be able to resist pulling a Bush, and simply tell the American people to "go shop" in order create an illusion of prosperity.

I understand that some folks may dismiss saving as hopelessly old fashioned, so just call me old school.

[Newsjock]

3. Can't really feel that sorry or that proud for the Montoyas

Only a few years ago, Mr. Montoya and his wife — who worked as a freelance wardrobe stylist, mainly for Macy’s — had enough disposable income to spend up to $1,000 a month on designer clothes for themselves and their children, Camila, 13, and Diego, 6.

That's the spirit that helped get us to where we are today. There were plenty of used canoes available a few years ago, too, but the Montoyas probably were too afraid of what the neighbors would think.

[Goldstein1984]

4. Americans have been consuming and polluting

A lot of people did a lot of things they've stopped doing now. Another reason the economy isn't going to recover. If the spending patterns of my family and friends are any indication, frugality is going to prevent a return to anything approaching the status quo of recent years.

I agree with a post above that saving is essential. But not in banks that will use your money to build another house of cards. We're putting our money in a credit union, and we're also about to start moving money out of the U.S. into another currency, out of reach of Uncle Sam.