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Tuesday, June 30, 2009

Stimulus or Savings: Sounds Like a Win-Win to Me!

O.K., o.k., the stimulus isn't sending the economy roaring back into a frenzy of consumer spending. But it is fueling the highest savings rate in America since 1993. Last month, consumer spending went up just 0.3%, even though our incomes rose 1.4%. But we socked away 6.9%. Even that figure isn't spectacular: as this cool NYTimes graph shows, 6.9% only brings us back to the average for the last 50 years. Still, that beats the credit-drunkenness of the past few years. And after this year's mess, I think we could all use a nice, slow, boring economy where people act like Grandma and Grandpa told us to: save your money, spend wisely, and don't buy what you can't afford.

National Thrift Week? Heck, let's try National Thrift Decade.

3 comments:

  1. Winner?? Obama promised if the spending bill were passed unemployment would not go above 8%

    Unemployment is now at 9.4 % and is expected to rise even further. I heard on the news today that it is expected that there will be close to 500,000 jobs lost for the month of June.

    Right here in Madison Gehl announces even more lay offs.

    Yup the spending bill sure is working!!

    Tim Higgins

    ReplyDelete
  2. Off topic, Socialized medicine sure is working in Canada, as this link explains:

    http://boortz.com/nealz_nuze/2009/07/private-healthcare-booming-in.html

    ReplyDelete
  3. I'm thankful Gehl hasn't closed entirely. The new French owner Manitou appears supportive, so we should count our blessings.

    There's just no simple solution for our economic change. Obama never claimed it would be easy street.

    I would argue that if everyone lived like many of us do in South Dakota (financially conservative) that we wouldn't be in this mess.

    We should right now be in the streets campaigning for health care reform. The people who like our current system are the ones who are financially benefiting from it.

    ReplyDelete

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