Signs of Recession?
January 15, 2008 – 8:24 amReading 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?
I just had to see my hair stylist(Michelle) during this season and I happen to catch her during her day-off. She works in an upscale spa but she also works at a barbershop on Thursdays where I discovered her when she was cutting my husband’s hair. Anyway, to cut the story short, I asked her so nicely if she can do something for us(my husband, me and daughter) needed hair cuts. So she thought for a while and she said if we didn’t mind going over to her house. She was kind enough to take us in so short notice because she knows we are just visiting over this side of the bay and getting a schedule during weekdays isn’t easy to squeeze in. We gladly and quickly went over to her home after we had our late breakfast and we found out that she lives within a mile radius.
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For those of you who haven’t thought of what to get for your special someone’s gift yet and diamonds is out of the question due to budget constraints, you still have some time to buy the perfect gift: cashmere! What better way to give your loved one a warm embrace even if you are not with him/her? I have one cashmere sweater that my husband gave me last 2005 and I would wear it everyday if I could. It’s so soft on the bare skin. It’s amazing how it can make the temperature just right. It simply retains the right amount of body heat making you feel comfy unlike Acrylic sweaters that can make you feel too hot and uncomfortable. My best gauge? My underarms, if they perspire at room temperature then I shouldn’t be wearing it. I would take natural fibers anytime and cashmere is a treat.