The Mizpah Minutes

While we are told that there is a silver lining at the US recession horizon, US shoppers are looking after the pennies and are not very likely to go back to mo-matter-what-spending in a hurry.
Mark Zandi, chief economist at Moody’s Economy .com:
“Lower-income households can’t borrow and higher-income households no longer feel wealthy,” Mr. Zandi added. “There’s still a lot of debt out there. It throws a pall over the potential for a strong recovery. The economy is going to struggle.”
Are old virtues like “need not-want not” settling in again?
Honestly, the way consumers lashed out the cash these last years before the crisis was unhealthy and wrong. Micro-economically wrong of course seen through the eyes of a modern economist (whatever that’s worth). Now many many are weaned off the constant need to buy, amass and throw away lots of useless stuff and perhaps see the blessing in disguise as they will fare much better without this other form of drug dependence?
But our mythical US shopper might not stay off it long and every spare dollar will begin to burn holes in pockets and purses yet again. The States used to gain 70% of their economical action from those credit card abusing good Americans.
But perhaps there is a chance for more than a few to understand that happiness and compulsary shopping are two totally different planets and that being careful with money is a good thing.
Businesses will have to adjust to lower demand and yes they can.
We might see a return of healthy aspiration in many aspects.
Right now Americans are beginning to alter their taste and to look out for more value than before. Not just price-wise but also regarding low quality goods. Less junk – more joy.
That will be the next lesson businesses will have to learn and to implement.
Interesting times.
Let us see what happens.

Written & © by Helena Lind

This entry was posted Friday, September 11th, 2009 at 7:11 am. Both comments and pings are currently closed.