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WEDNESDAY, NOVEMBER 25, 2009
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4

Penny Pinching May Linger Long After Recession

Lasting change for once-insatiable American consumers?

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(Newser) – The Great Recession is loosening its grip on Americans, but the spirit of thrift it inspired isn't, reports the New York Times. Consumer spending, which until recently accounted for 70% of US economic activity, looks unlikely to return to full steam as consumers emerge from the recession cramped by lower home values, lingering debts and scarcity of bank credit.

The recession may have sunk in deep enough to alter spending habits for decades to come. “It’s simply less fun pulling up to the stoplight in a Hummer than it used to be,” says an economist. “It's a change in norms." Another expert sees a "cultural shift going on. People will save more" rather than returning to pedicures, SUVs, and $4 lattes.

A row of Hormel Chili--a product that thrives in a bad economy-- is shown on a supermarket shelf in North Andover, Mass. Thursday, Aug. 20, 2009.
A row of Hormel Chili--a product that thrives in a bad economy-- is shown on a supermarket shelf in North Andover, Mass. Thursday, Aug. 20, 2009.   (AP Photo/Elise Amendola)
In this photo taken Wednesday, May 13, 2009, Will Sumreix and his daughter Autumn shop at the Wal-Mart Super Center in Springfield, Ill.
In this photo taken Wednesday, May 13, 2009, Will Sumreix and his daughter Autumn shop at the Wal-Mart Super Center in Springfield, Ill.   (AP Photo/Seth Perlman)
In this file photo taken Nov. 7, 2008, shoppers look in through a window at Tiffany & Co.'s new store in Columbus, Ohio. Tiffany & Co. said Friday, May 29, 2009, its first-quarter profit plunged 62%.
In this file photo taken Nov. 7, 2008, shoppers look in through a window at Tiffany & Co.'s new store in Columbus, Ohio. Tiffany & Co. said Friday, May 29, 2009, its first-quarter profit plunged 62%.   (AP Photo/Kiichiro Sato, File)
Shoppers push carts through the parking lot at the BJ's Wholesale Club store in Salem, NH, Wednesday, Aug. 19, 2009.
Shoppers push carts through the parking lot at the BJ's Wholesale Club store in Salem, NH, Wednesday, Aug. 19, 2009.   (AP Photo/Charles Krupa)
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4 comments
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DeniseVB
Aug 29, 09 1:46 PM CDT
I've always done this. Called living within your means :) Reply
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MarkFL
Aug 29, 09 6:08 PM CDT
Our whole economy is such a house of cards. We need to stop focusing on growth and find ways to create stability and investment in areas of need. It is ridiculous that the stability of my investments and the price of my house is link to how many pedicures people get. Maybe what we need is more adaptability; better ways for us to shift gears when the tide turns. maybe there is nothing better but our system is pretty crappy. Reply
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schmidtkoff
Aug 30, 09 9:02 AM CDT
i've never bought a $4.00 cup of joe, latte or whatever. what a waste. throw cases of bottled water into that, also a waste. pinching pennies i buy used books, and shop at goodwill. the pressure is to separate your money from you. don't fall for it. Reply
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SBS
Aug 30, 09 5:34 PM CDT
I heard a program on the radio talking about this. They were discussing the current economic situation and the Great Depression. Many of the people who lived through the Depression were thrifty for their entire lives. Possibly will be the same for us now. Reply
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