Saturday, November 1, 2008

The Bright Spot of the 2008 Recession

I have good news tonight. Because of the recession, people are cutting back on unnecessary purchases. They are bringing lunches to work more. They are holding on to their cars and houses longer. No, I haven't lost it. This really is good news, for the economy and for ourselves.

First, the economy. Growth based on consumer spending driven by easy credit is not sustainable. We've now found this out the hard way. Sustainable growth is driven by productivity improvements and new products. Both of those things need savings and investment. We'll save now, because we know we have to. Consumer spending will come back after this happens, and the economy will be stronger than before the recession because it will have a solid base.

More important than the economy, however, is the effect the cutback will have on ourselves. We're being forced to prioritize, to decide which things are more important to us to have. This re-evaluation is actually part of the first step toward recovery from materialism (admit there's a problem).

1 comment:

The Seeker said...

I agree with you 100%. I think many people are reevaluating their lifestyle choices and figuring out what is really important in life. Material stuff is necessary, but sometimes you can make do with what you have, or revamp it into something new. Great post!