What if EVERYONE was frugal?

[sweeps]

I'm in a philosophical mood today. What would happen if everyone was frugal? No big spenders. Everyone on a super-tight budget, just pinching pennies.

[thekid]

Originally Posted by Sweepsplayer

I'm in a philosophical mood today. What would happen if everyone was frugal? No big spenders. Everyone on a super-tight budget, just pinching pennies.

Kindly let me know a day or so prior to this happening as I would like to sell absolutely everything I have invested on the stock market. Thank you.

[vsjhoc]

It might get ugly. We'd be fighting over a penny left on the sidewalk.

[thekid]

Originally Posted by vsjhoc

It might get ugly. We'd be fighting over a penny left on the sidewalk.

No, no, no. No such penny would be left on the sidewalk

[MonkeyMama]

I always thank the big spenders. We live in such a high wealth area it is easy to get really fancy cars dirt cheap. Everyone seems to turn around and sell them after a year or 2 and the market is flooded with an abundance of used cars. You have to laugh at asking prices sometimes - did they see there were 100 cars just the same on the market for 1/2 as much???

The big spenders I feel have certainly kept the economy afloat, and greatly lessened the blow of the last recession.

Everytime I buy something used and low cost (though like new) I thank the big spenders of the world.

The economy certainly would suffer and I think it would be harder to be frugal in general, if everyone was frugal. BUT at the same time I question how long our economy can be sustained by a debt society. Seems like one of these days people will max out. ??? All the more reason to be frugal now and well prepared if it all goes bad.

[creditcardfree]

That is a very good question.

Would we have more saved for a rainy day...more to invest in the stock market...more money to give? I'd like to think it would be a positive move.

Isn't one of the key ingredients to a healthy economy investments? I would think investments of cash rather than borrowed money reduces risk.

Just my first thoughts...I may have more later.

[jodi]

We'd all be keeping "down" with the Joneses

[jodi]

AHHH! Scary thought - there's be no more thrift stores or garage sales because everyone would use and reuse their items until they no longer had any use in them. So we'd all have to buy things new (only the things we couldn't make or grow ourselves, of course)...but wouldn't prices be driven to the rock bottom if we were all so frugal that we wouldn't buy the big ticket items?
Which means...the market for luxury items would disappear...there would be less options in groceries, clothing, even entertainment. We might have to go back to the days of...gasp...conversation, reading, and playing games! (which is a typical night around here anyway)

[thekid]

Originally Posted by jodi

We'd all be keeping "down" with the Joneses

Damn those Jones, did you see that old reliable unspectacular Hyundai they just got. We gotta trade down!

[JanH]

Do you think it might have been more like that in our grandparents' era? Both sets of grandparents were very frugal and made do.

[disneysteve]

Originally Posted by jodi

there's be no more thrift stores or garage sales because everyone would use and reuse their items until they no longer had any use in them.

I think thrift stores and garage sales would still be around, probably more plentiful than ever. Because instead of throwing out stuff they didn't need, people would donate it or sell it. That would be great for the 2nd hand shops.

I think if you have some conversations with depression-era folks, you can get a better idea of what life would be like if everyone was frugal, because back then, almost everyone was.

[Ima saver]

My parents were around during the depression and they were very frugal. You saved up to buy what you wanted.
It would make my husband very unhappy, the car makers would probably stop making corvettes!

[jodi]

Originally Posted by thekid

Damn those Jones, did you see that old reliable unspectacular Hyundai they just got. We gotta trade down!

Hey! Where's that rusty old bike??

[Ima saver]

I gave mine away!!

[Gruntina]

Companies and employment would be so frugal and not hire people or do unnecessary work that cost money resulting to fewer employments. They would probably outsourced so many works simply just because it’s cheaper that way. Gloomy thoughts for US future as this are already happening. Including our Tutors... if you check out TutorVisa, they have Master degrees tutoring students in many language and subjects which only charge us 2.50 an hour. That is much cheaper than hiring our own teachers and tutors that cost range between 25 and 50 dollars an hour!!!

[TinyFish]

Hmm, I suppose it would depend on what your definition of 'frugal' was. Would that mean that everyone was spending the same amount, that there were no rich and poor, or just that everyone had to live within their income?

If the latter, there would still be a lot of clothing and things being donated/sold by the wealthy, though maybe not so much as now. Plus, people who had jobs that required very high standards of dress/entertaining/lifestyle would be reselling the things they could no longer use. Though, maybe over time it would become less fashionable to be too conspicous in your consumption.

If the former, people would generally use things up, so you might only see things that had only temporary value to them, such as children's clothes or maternity clothes.

Of course, without high consumer demand our economy would change radically, which would have other effects.

-TinyFish

[sweeps]

Maybe there would be a web site called SpendingAdvice.com where the members criticize all the frugal people in the world and scheme up secret ways to spend more money. The main poster on the site would be Ima Spender.

[creditcardfree]

Originally Posted by Gruntina

Companies and employment would be so frugal and not hire people or do unnecessary work that cost money resulting to fewer employments. They would probably outsourced so many works simply just because it’s cheaper that way. Gloomy thoughts for US future as this are already happening. Including our Tutors... if you check out TutorVisa, they have Master degrees tutoring students in many language and subjects which only charge us 2.50 an hour. That is much cheaper than hiring our own teachers and tutors that cost range between 25 and 50 dollars an hour!!!

Hmm...if the companies were frugal wouldn't that mean greater profits? In a free market society, a company can hire and pay what the job is worth, if it is not worth enough, they will not find anyone to fill and work the job.

I don't know anything about the TutorVisa you are referring to, but don't we have a minimum wage? I guess if someone is willing to work for that low of pay...its their free choice. I would agree that I think they are worth more than $2.50/hr.

JMO.

[Gruntina]

Originally Posted by creditcardfree

Hmm...if the companies were frugal wouldn't that mean greater profits? In a free market society, a company can hire and pay what the job is worth, if it is not worth enough, they will not find anyone to fill and work the job.

I don't know anything about the TutorVisa you are referring to, but don't we have a minimum wage? I guess if someone is willing to work for that low of pay...its their free choice. I would agree that I think they are worth more than $2.50/hr.

JMO.

Yes it means greater profit for the company, but if you noticed in the news lately, a lot of the companies are paying people in other countries to do the work which means, the other countries are getting some of the companies money. Also some companies are relocating to international companies as well.

Tutor Visa is based in India... if you do the currency conversions online, 2.50 an hour is not minimum wage over there. Its 2:50 in US dollars btw

[lrjohnson]

It would be very intersetng to see what happened environmentally. I'd assume that less consumption would mostly be helpful. There may be small pockets where perhaps it does not help the environment, for example, peopple keep the old cars going and fewer buy hybrids.