The Conservative Cave
Current Events => Economics => Topic started by: BlueStateSaint on February 02, 2009, 05:20:26 AM
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The Law of Unintended Consequences in action . . .
Frugal Americans Hurt Economic Recovery
The paradox of thrift -- Americans are saving more in tough times but that's no good for the economy.
AP
Sunday, February 01, 2009
Americans are hunkering down and saving more. For a recession-battered economy, it couldn't be happening at a worse time.
Economists call it the "paradox of thrift." What's good for individuals -- spending less, saving more -- is bad for the economy when everyone does it.
On Friday, the government reported Americans' savings rate, as a percentage of after-tax incomes, rose to 2.9 percent in the last three months of 2008. That's up sharply from 1.2 percent in the third quarter and less than 1 percent a year ago.
Like a teeter-totter, when the savings rate rises, spending falls. The latter accounts for about 70 percent of economic activity. When consumers refuse to spend, companies cut back, layoffs rise, people pinch pennies even more and the recession deepens.
The downward spiral has hammered the retail and manufacturing industries. For years, stores enjoyed boom times as shoppers splurged on TVs, fancy kitchen decor and clothes. Suddenly, frugality is in style.
More at the link:
http://www.foxnews.com/politics/2009/02/01/frugal-americans-hurt-economic-recovery/
I know that we've started to pinch pennies, and invest in canned foods and "precious metals"--lead being the most prevalent. :-)
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Bad Americans not consumming enough are destroying the planet......Hell, just last week it was Bad evil rich Americans are consumming to much and are destroying the planet.
Make up your minds, liberals.
Nevermind liberals.....I assumed you had one.
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Who can afford to save money in this Oooooobama economy? :fuelfire:
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Well, there's certainly no point in investing it because you'll be penalized for being too rich.
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Well, there's certainly no point in investing it because you'll be penalized for being too rich.
We shouldn't need to save anyway, 'cause the gubmint is gonna take care of us in our old age...right? Right?
*crickets chirping*
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Well, there's certainly no point in investing it because you'll be penalized for being too rich.
Absolutely. You invest it, he will take it. You'll get change alright -- about a handful when he is done.
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We shouldn't need to save anyway, 'cause the gubmint is gonna take care of us in our old age...right? Right?
*crickets chirping*
Right.......How many times have they got to tell you?
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Right.......How many times have they got to tell you?
Well, I'm old. Where's my :censored: d*mned pony?
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Well, I'm old. Where's my :censored: d*mned pony?
Me too.....and apparently, so is our ponies.
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Look, you people can't be trusted with money. Uncle Zero will take all your money for safekeeping and give you vouchers to exchange for approved goods and services. Get with the program folks. :-)
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Look, you people can't be trusted with money. Uncle Zero will take all your money for safekeeping and give you vouchers to exchange for approved goods and services. Get with the program folks. :-)
Heh, that's the good news. The bad news is that there are no approved goods or services. :thatsright:
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Look, you people can't be trusted with money. Uncle Zero will take all your money for safekeeping and give you vouchers to exchange for approved goods and services. Get with the program folks. :-)
Didn't one of your nutty-but-greedy kings try something like this with the goldsmiths (who constituted the banking system, such as it was, at the time) back about 400 years ago? I don't believe that one had a particularly positive outcome.
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Don't blame me. I've been passing out money like I'm my own private congress. I've paid three people's rent and a couple of cell phone bills. My money is own the move.
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Look, you people can't be trusted with money. Uncle Zero will take all your money for safekeeping and give you vouchers to exchange for approved goods and services. Get with the program folks. :-)
Uncle zero?.......... :lmao: :lmao: :rotf: :rotf: I love it!
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Didn't one of your nutty-but-greedy kings try something like this with the goldsmiths (who constituted the banking system, such as it was, at the time) back about 400 years ago? I don't believe that one had a particularly positive outcome.
Doesn't Obama think he's a king of sorts? Nothing new under the sun.
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Doesn't Obama think he's a king of sorts? Nothing new under the sun.
If he believes his own press coverage, "King" might be lowballing it a bit.
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It's a good thing that most folks don't save 10% like most financial planners recommend.
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Don't blame me. I've been passing out money like I'm my own private congress. I've paid three people's rent and a couple of cell phone bills. My money is own the move.
Um, while you're at it..... :uhsure: :-)
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Um, while you're at it..... :uhsure: :-)
You gotta have my private number. Since I posted that I've relieved myself of another $132.33. I paid next weeks daycare bill and filled two tanks with gas.
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Bijou - you win the "name Obama" contest!!! Uncle Zero it is from now on in my book! :rotf:
Someone needs to photoshop an Uncle Sam "I want you......" poster. :lmao:
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You gotta have my private number. Since I posted that I've relieved myself of another $132.33. I paid next weeks daycare bill and filled two tanks with gas.
I'll have my barrister in Zimbabwe get in touch with you. :-)
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I plan on spending lots of money on hay, oats and other things that horses like, just as soon as I get my damn pony.
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Well, I'm old. Where's my :censored: d*mned pony?
The pony was a misprint; instead it was supposed to be pennies. That's what Obama and the Democraps want to leave you with.
I did my part of trying to jack up the economy today. I bought a 2008 Nissan 350Z sports car. Drove around all day in it.
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I did my part of trying to jack up the economy today. I bought a 2008 Nissan 350Z sports car. Drove around all day in it.
Well get your ass back out there. It's 12 degrees here this morning and I could use a little glow-ball warming.
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<------Frugal American
:shucks:
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I guess it never occurred to the donkeys that 8 years of media calling the economy in the tank when it was the best ever might have been a mistake having left the idiot Frank Raines to fricassee the golden goose.
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...They take "staycations," grow their own vegetables, buy only used cars and pre-pay cell phones. Case hasn't used a credit card in two years. And she's saving more.
..."People are not saving; they are building financial bomb shelters."
SHIT!!! Big Brotha's already got his all-seeing Thought Police reconnaissance squad peeking into my household.
Nice knowing ya, guys. The Thought Police should be kicking in my door any minute now.
(http://usmilnet.com/smf/Smileys/default/war.gif)
Some of 'em won't be living to fellate Dear Leader again.
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The pony was a misprint; instead it was supposed to be pennies. That's what Obama and the Democraps want to leave you with.
I did my part of trying to jack up the economy today. I bought a 2008 Nissan 350Z sports car. Drove around all day in it.
I took it back yesterday. The roof had hail damage which I did not notice until late Wed. evening when the sun was shining on it at an angle. Got my money back and the car I traded in. Soured me on buying a new car for a while.
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I took it back yesterday. The roof had hail damage which I did not notice until late Wed. evening when the sun was shining on it at an angle. Got my money back and the car I traded in. Soured me on buying a new car for a while.
Damn, that stinks. Better luck next time.
Buy a 280ZX and put a Corvette LS1 in it. :-)