Frugalistas Rejoice: Recession Is a Validation

Savings rate jumps over job, portfolio fears

(NEWSER) - Even after the economy rebounds, the US will likely remain a nation of penny pinchers—and that has economists worried, the New York Times reports. Consumer spending accounts for 70% of the country’s GDP, but Americans, fretting over job security and losses in the housing and stock sectors, are squirreling away more of their after-tax income in unprecedented fashion. More»

(NEWSER) - Our massive economy will remain stuck until hoarders open their wallets and "roll the dice" once again, Daniel Gross writes in Newsweek. Investors and consumers alike must regain their "penchant for gain and risk... some of the essence of what makes us American." Until that caffeinated, delirious plunge into the capitalist rabbit hole entices us, our thrift will make "everyone poorer." More»

Sharp rise in savings rate expected to lengthen recession

(NEWSER) - Americans worried about the recession are stashing away cash at the highest rate in decades—but economists fear that the thrift will prolong hard times, reports the Wall Street Journal. The national savings rate has rebounded from less than zero to levels expected to hit 5% or higher this year just when consumer spending is needed most. More»

Inflation cooling, but consumer confidence is down

(NEWSER) - Personal spending—a major force in the health of the economy— rose just 0.1% in February, its smallest increase in 16 months, the Wall Street Journal reports. The increase, which actually beat analysts' estimate of a 0.1% decrease, came despite a bump in personal income and signs that inflation is easing, the Journal notes. More»

'Boomerang kids' have trouble finding well-paying work

(NEWSER) - As many as three out of 10 young adults are moving back in with their parents—resulting in the highest share of 18- to 34-year-olds living with multiple generations since the 1950s—after finding themselves unable to find lucrative employment in this dismal economy. They're dubbed "boomerang kids" because they depart for school or work only to return to the nest, but surprisingly, reports the Christian Science Monitor , 78% say they're happy living at home and 24% say it's positive for their relationship with their parents. More»