But how long will this last? Is this a sea change in consumerism or simply a classic response to fear?
We have a long way to go to match the Chinese (+35%) and the Japanese (+20%) but should we even come close to their saving rates then we have entered the genre of science fiction.
And like the scary scenarios many of those stories reveal we will be in for some unbelievable outcomes if savings should come anywhere close to those Asian rates. Recession would evolve quickly into something bigger and longer.
But I hardly think it likely that we will step into this paranormal range after decades of debt and leverage to enjoy the lifestyle we want when we want it. No deferred or postponing of gratification seems to fit with our experience.
When I wrote SAVING Is for Suckers; Unless You’re Spending on Purpose I didn’t imagine my worse fears of a global meltdown would actually come true. Now it is a fact of life and we are all responding to the new reality. But the title, I think, still holds true.
In fact, less spending is now responsible for maintaining and improving whatever the lifestyle you manage to enjoy today. It had better be producing a great return in satisfaction and moving you toward your goals and aspirations, albeit more slowly.
If not then saving in the face of foolish spending is still an inadequate strategy for sustaining all that you value.
The new leverage of the day is found in spending on the purposes you truly value most.
Copyright 2009 William M. MacKay
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