Here is some food for thought that I have been processing lately.
A big factor in consumer behavior is income. However, income levels are becoming less of a factor than they once were. Take, for example, people driving up to a school in a decked out Escalade while their kid receives a free lunch at school (paid for by you and I)…something is terribly wrong with that and my wife sees it over and over at her school. Recently I have been thinking about how the role of credit has changed the U.S. and consumer spending (I know...kind of strange to let this thought fester for long, but it has). The overwhelming majority of Americans live beyond their means (averaging over $6,000 in debt). It really bothers me that as credit has increased, product pricing has become over inflated because companies know the consumer will buy the product because they can simply charge it. It is an ugly cycle of credit and price inflation. Sooner or later, the deck of (charge) cards is going to come crashing down and we will experience what our grandparents wish they never had...the depression (part II). Perhaps I am overreacting, and I hope I am, but something needs to be done to stop the vicious cycle of overspending.
By the way...Happy New Year!
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5 comments:
i agree.
it seems nobody has really been taught money management skills, either. they should teach you this stuff in school or something.
my parents did a real good job, but pooey for those people who dont know any better.
what can we do to stop this?
I don't think we will see another depression. I think there are too many money-wise people out there for that. I do agree with what you are pointing out. I anticipate that in the next 30 years we will make large strides toward(if not arive at) becoming like many other countries. I think we will see two enormously different economic classes. Those who have all the money, and those who have none. The haves will be the minority, but they will know a comfortable life. The have nots will be a majority, and they will be trapped by their spending habits.
You sound like me...tell me again why where not friends? We think the same thoughts...we dress well...both of us have trophy wives...while you are not funny and I am I still think we could be friends.
Luke,
Were your comments directed at me or Richard? If me, then I have to say, we are not friends because you talk to much and can't accept that I am never going to make it out to Pelham for church.
Seriously...we need to get together soon, and our wives can come to if they want.
I was talking to you Jon...Richard and I are already friends. Sure...what are you doing next week? I can come up and get an early lunch with you.
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