Full-Fledged Disciples of the New Frugality

Deloitte KnowledgeCo LLC and Harrison Group are out with a new report, "The 2010 American Pantry Study," detailing the results of a recent poll of U.S. consumers. Contrary to the expectations of Wall Street traders and ivory tower economists, it doesn't look like average Joes (and Janes) will be returning to their old ways anytime soon. According to Deloitte/Harrison,

over 40 percent of all American consumers in our survey have been directly affected by the recession – lost jobs, pay cuts or reduced hours. Furthermore, it seems as if everybody in America knows several other people who have been affected directly. The effect of these events over the 28 months of the Great Recession have bit deep into the American psyche.

In fact, if the following key findings are any guide, it appears that a sizable majority of Americans are now full-fledged disciples of the new frugality:

• 93% expect to continue spending cautiously even when the economy improves
• 92% have made some kind of change in their pantry-related shopping habits
• 89% feel they have become more resourceful because of the economy
• 84% have become a lot more precise in what they buy
• 81% find it fun to see how much they can save with coupons or loyalty cards
• 55% of those cutting back suffered no decline in income, but simply felt they “should be” cutting back

Comments

[oli]

How can we return to "old ways" when frugality will be the "new norm" for most people in our captive state. The next move by Peterson and friends will be to privatize national properties in our "new austerity" which is ironic ie the greatest pushers of debt (PE shops, lbo firms,etc) will be the greatest beneficiaries of this thinking....and what should that remind you of?...try Russia and the oligarchs that bought state assets to attain wealth through cronyism...people better start waking up!

When Money Buys Integrity
Economics in Freefall
By PAUL CRAIG ROBERTS

Offshoring transforms American workers’ wages into performance bonuses for executives, capital gains for shareholders, and honoraria and research grants for economists who shill for the practice.

The problem that the US economy faces is far more serious than the financial crisis resulting from financial deregulation. The reason that traditional monetary and fiscal policies cannot produce an economic recovery is that so much of the US economy has been moved offshore. As the jobs have departed, there is no work to which low interest rates and massive government spending can recall workers. This is the real freefall


http://www.entendance.com/forums/viewtopic.php?f=6&t=751&p=11490#p11490

[sharonsj]

While it's going to kill off more retail stores, people are finding out you don't have to buy a single new thing to survive. American has so much "stuff," that we just pass it around. All my clothes come from thrift shops and yard sales, along with a lot of appliances and just about anything I need. Only food has to be bought constantly. To save money, don't buy processed food--it's a lot healthier if you don't. And since we still don't have affordable health care, we need to take better care of ourselves.