News about the economy is all over the place (no surprise there.) Here are a couple pieces I found noteworthy. First, from a Chicago Tribune poll:
Two in five say they are worse off than a year ago. Half say they will cut back on holiday spending this year—and only 1 in 100 say they will spend more on gifts.
And here's a USA Today piece on what's going on at the nation's largest retailer:
About 80% of shoppers cite "personal financial security" as their top concern in internal surveys, up from 65% just a few months earlier. A year ago, the price of gasoline was the top concern.
Wal-Mart has seen a rise in purchases of staples instead of discretionary items. Shoppers have more then doubled purchases of private-label items, eschewing name brands.
Some shoppers aren't coming to the stores as often so they don't have to drive as much. Others, who may be unemployed, are coming more frequently to buy a few items when they have money in their pockets.
Oh no! Giving up name brands? The end is certainly near!!!!! ;-)
True, people are just starting to adopt frugal habits now out of necessity that some people have been doing all along. But it will be interesting to see if some of the more luxury brands suffer more than other companies because no one is buying them. If enough people start to make these choices, it may start to have an impact on certain companies, and thus, the economy.
Posted by: LC | October 22, 2008 at 02:12 PM
So, in other words, people are just now starting to do what we've been doing all along. Damn band-wagon jumpers!
Posted by: Kevin M | October 22, 2008 at 03:55 PM
To be honest none of the economy crisis has affected me much or anyone I love. Sure we all lost money in the stock market but we are not crying over it because retirement isn't near for us.
However, this week two of my top accounts at work went belly up. Things are going to get a lot worse as the ripple effect moves outward. I am finally a little scared.
Posted by: JEM | October 22, 2008 at 04:08 PM
To be honest, I miss the days where I could look down my nose and wag my finger in shame at the credit-drunk miscreants running around wildly, alone in my disapproval.
Now EVERYBODY's doing it...*sigh*.
Posted by: Trent D. | October 22, 2008 at 05:25 PM
USAToday, shame on you. It's not more "then" doubled, it's more "than" doubled.
Posted by: Justin | October 22, 2008 at 05:27 PM
The current economic crisis is a GOOD THING (TM). For far too long, we as a nation have lived on credit, spending more than we earn. Now we're seeing that credit tighten way up, and people are learning how to cut back and spend what they actually have. Yes, the stock market is in the tank; no, that's not permanent. Yes, it's going to be hard to get a job for a while; no, that's not permanent. The main long-term effect of this crisis, hopefully, is that it'll teach people not to overextend themselves so badly.
Posted by: LotharBot | October 22, 2008 at 08:25 PM
As a poor person, I have been promoting extreme frugality for years.
Posted by: | October 22, 2008 at 10:25 PM
Yes, it's going to be hard to get a job for a while; no, that's not permanent.
Um, please engage brain before engaging mouth or fingers.
I'm an older worker, so for me it probably IS permanent.
A lot of boomers are really getting hosed and for many there will be no recovery.
Posted by: | October 23, 2008 at 01:59 PM