Reading an article from the NY Times: Americans Cut Back Sharply on Spending confirms that we(my family) are not the only ones cutting back or having a belt tightening move.
“Strong evidence is emerging that consumer spending, a bulwark against recession over the last year even as energy prices surged and the housing market sputtered, has begun to slow sharply at every level of the American economy, from the working class to the wealthy.
The abrupt pullback raises the possibility that the country may be experiencing a rare decline in personal consumption, not just a slower rate of growth. Such a decline would be the first since 1991, and it would almost certainly push the entire economy into a recession in the middle of an election year.”
We have lessened eating out and have been cooking more at home. We have always shopped at Costco for bulk necessity items. We have cut off going to Starbucks for ground coffee entirely and started using a less expensive alternative organic coffee named Mayorga(a review on it later). For clothes, we have been going to Delaware for tax free outlet shopping since we discovered them 6 years ago. We need to shop for clothes at least 2 twice a year for my daughter, children grow and go through clothes so fast. I don’t consider my small family of 3 an average American family when it comes to spending because we don’t go to the movies, I’m low maintenance when it comes to hair and nails and going to a mall is quite a field trip. We shop more online specially if free shipping is offered with additional perks and it saves gas!
I think more and more people feel the pinch with commodity prices going higher and higher but salaries remain stagnant, there is less spending money. Health insurance costs have doubled since last year for us and Maryland have raised taxes some more. Who would be in the mood to spend? Most likely it’s just spending money they don’t have.
Is it a sign of recession or the American public just wisening up?
My sentiments exactly–prices continue to go up while salaries stay the same. It is unfair. Can you imagine how difficult it is here in the Philippines with the government being what it is.
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Hi MixedNuts,
I can just imagine. The last time I visited the Philippines, I felt the inflation and to find out that companies are still paying the same. The only way to find a decent way of living is to either go out of the country or somehow be innovative to have your own business.