Other than groceries and necessities, I’ve lost my desire to buy, buy buy. After all, where am I going to go? I can’t even pop in to see a near neighbor anymore. When I meet them on the street now, they are on one side of the road. I am on the other. Thank goodness we still have our lungs and the use of our ears because we need them to actually hear and speak. How did the words get to the other side of the road? They screamed them!
Our whole economy is based on many of us shopping. What a horrible waste of energy to base an economy on. Can’t they think of anything else? Most other “ex-consumers” think like me: we don’t want to spend our money foolishly anymore. We want to save our money (hoard it really). This pandemic taught us all at least one good thing: hold onto your cash because you just don’t know what the next 24 hours is going to bring.
With so much uncertainty in the world, with a list growing wider with each passing day (throw in the riots) is it any wonder consumers are holding back? They don’t even know if they’ll have a job in a few days (or weeks or months).
“As a consumer becomes concerned about the economic outlook, the tendency is to cut back on spending and when consumers do this in mass, that lack of activity on the part of the consumer actually serves to slow or increase the slowing of the economy,” said Dr. Shelton Weeks, a finance expert at Florida Gulf Coast University. Click here.
If we think this time is going to be better, it’s not and it won’t. We’re all doing damage to ourselves, it seems, because our economy is based on consumerism so when we don’t shop we hurt our economic bottom lives. Ask me if I care? I don’t. Lots of companies have been making billions off of us. Maybe the one thing this pandemic has taught us is to slow down, enjoy life, visit the state parks, smell a bit of the roses and ditto to those big corporations.
Maybe we all just need a breather and figure out another way of doing things…..
“It’s (the pandemic) gonna allow people to make prudent investments down the road but that has a longer term effect than what we would see if consumers were to take money, say the stimulus money, and pour that back into the economy today.”
Aside from spending less and saving more, studies show that people are also slashing their debt on things like credit cards so they can be prepared if their jobs are threatened.
Personally, I think it’s a very good thing we all are saving more and slashing our debt. We’ll find out sooner than later that we made a very good decision. An economy based on the continual buying of the consumer isn’t a sound base IMHO. However, I’m not an economist and I have no idea how another financial situation might work. I just know that our massive consumerism really should come to a halt, if not than for a short slowdown.
The elderly, it seems, those in, out and around retirement are turning out to be the largest savers of them all.
This (the savings rate) is largely driven by the elderly population. Pre-Covid-19, baby boomers were pulling back on spending amid a surge in mortgage restructuring, meaning the older population was saving money each month and not spending. “Baby boomers are near or in retirement, which makes them more skittish than they once would have been.”
This trend will continue in the post-Covid era, as boomers are among the highest-risk groups for contracting the virus. “There’s no reason to think that baby boomers who are most at risk, in a world where the well is still Covid-tainted, that they’ll drink from the well freely as consumers. There’s a reason to save more and they will.” (click here)