I agree with the article in that frugal behaviors will probably serve to lengthen this recession. However, in the long run, frugal behavior will benefit America.
Our economy is so screwed up because it is has been depending on excessive over-spending of consumers, as it has grown to expect over the past decade. With retraction in that behavior, of course there will be bankrupcy, store closings, and retail cut backs. It's just an adjustment to a different level of consumer spending. If consumers can maintain an appropriate level of spending, the economy will catch up and sustain itself just fine--albeit with Wal-Marts and Starbucks every other block.
|