What’s The Shelf Life For The Frugal American Consumer?
As the scope of the economic crisis spread, more people realized that they were overextended financially. As a result, American consumers have responded quickly, altering their place in the economy, seemingly overnight. There are now far more “savers” than “spenders.” Some see the rebirth of the frugal American consumer as a course correction away from past excesses. It is time to bring balance back to a system that is seriously out of focus. Between September 2008 and April 2009, the average U.S. household slashed discretionary spending by almost 30%. Understandably, from a world perspective those figures are severe and there have been serious consequences. At home, the automotive and housing markets have nearly dried up. In other countries, particular importers like China, Japan, and India, the trend has translated in to lower production rates and growing inventories of unsold merchandise. Economic recession, low exports numbers, and the shrinking of emerging markets may be just the
