Frugal Adults Depriving The Economy

[jeffrey]

Like most of her friends, Hollis Romanelli graduated from college last May and promptly moved back in with her parents.

As a result, she didn’t pay rent — or a broker’s fee or renters’ insurance, for that matter. She also didn’t buy a bed, desk, couch, doormat, mop or new crockery set. Nor did she pay the cable company to send a worker to set up her TV and Internet, or a handyman to hang a newly framed diploma. She didn’t even buy drinks and snacks for a housewarming party.

In other words, Ms. Romanelli, 22, saved a lot of money. But she deprived the economy of a lot of potential activity, too...

http://www.nytimes.com/2011/11/17/business/economy/as-graduates-move-back-home-economy-feels-the-pain.html?_r=1&nl=todaysheadlines&adxnnl=1&emc=tha25&adxnnlx=1321527680-M4V2k6z0bKZ+bOPvo9n9+Q

[bjl584]

The "Paradox of Thrift." I like that. This very subject has come up on here before. About how those of us that save are somehow hurting the overall economy.

[disneysteve]

Well, I don't really care that it's hurting the economy but I am concerned about the idea of staying at home until you buy a house. I don't think that's a good idea. I don't think it represents growth for the young adult. I think it is regression, not progression.

If you can't find a job and are struggling, that's one thing. But if you are earning 45K, like in this article, which is nearly the median household income in this country, and still feel you can't get your own place, something is wrong somewhere. These "adult children" need to grow up and move on with their lives.

[graceful]

Better than having to default and file for bankruptcy in a few years, no?

[cptacek]

Better than having to default and file for bankruptcy in a few years, no?

Those aren't the only two options, you know. She could move out and work her way up on her own.

[jadet]

Ohh...the irony...

[photo]

I wonder about the dating lives of these people. I'm married and well past my 20s, but if I were single, I would not be the least bit interested in anyone who lived with mommy and daddy while being fully employed. The exception would be if he were taking care of an elderly or ill parent.

[dojo]

Well, when we were hit by the recession back in 2009 (in Romania) we were told by all kinds of 'economists': keep on consuming, so that the economy doesn't crash. Guess what? It did. The result? Thousands of idiots who kept on living 'the high life' while losing their jobs and not being able to pay their bills anymore. But they kept on spending, because someone said it would save the economy.

I don't care about anything but my PERSONAL well being. In times like this reckless spending is stupid. We're hardly surviving the recession, but we're still told to keep on spending.

We're living with my MIL. It's a big 4 room apartment and we're just 3. We're saving on rent (we don't pay it, since it's her apartment, we're eating together etc. What we're not 'splashing' for a lifestyle we don't need, goes into my business, savings and few travels.

[Shewillbemine]

It was the non-saving crowd that got us into this economic mess in the first place, buying houses they couldn't afford and spending lavishly on things they didn't need.

The lower to middle class citizens spending more money they don't have isn't going to boost this economy. How about getting the record number of millionaires and billionaires in the US to spend more per capita? (no this isn't a 99% vs 1% thing)

I won't be guilted into spending because I'm being wise with my money. Everything I've earned I've achieved myself with no parental help, trust fund, or starter money from anyone.