Thoughtful Thursday – The Economy

moneyI’m not normally one to dream much less remember them, but lately I have been dreaming. Or maybe it’s better to say I’ve been having worries at night and like many people, those worries revolve around money.

The market is up, although some are calling it a “dead cat bounce.” (Wonder where they got that term). In other words, the slight up phase might not last.

The Fed is printing lots of money to buy bonds. Hmm. . . . If I could print more money for my bills . . .

Anyway, there was one article the other day about how people are cutting back to save by eliminating things like house cleaning services, taking shirts to the laundry and eating out less. Estimated savings for this one family – $10,000 in a year.

A big savings. Playing devil’s advocate here – it’s also not stimulating the economy since now there’s someone with less work cleaning, laundering and cooking/serving food.

Still, I totally understand the reaction to not spend. I’ve cut back by brown bagging it everyday for lunch, finding ways of using up stuff in the pantry before buying new things, shopping at the outlets, big box stores and using coupons (well I always did those last two anyway!).

Have you changed your spending habits lately? Are there any tips you can offer for saving during these worrisome times?

0 thoughts on “Thoughtful Thursday – The Economy”

  1. Also, you’re describing what economists call “The Paradox of Thrift.” During hard times, individuals cut back on their spending, which is good for them as individuals but BAD for the economy as a whole. If the recession is mild, tax cuts may stimulate the economy b/c people have extra $ to spend. But if the recession is very deep, people are very pessimistic about job security and/or have very high debts to pay, they’ll just hang on to extra $ from a tax cut and that won’t do anything to stimulate the economy.

    As a result, in a very bad economic downturn the government needs to step in and spend (through public works and other activities) to make up for the reduced spending in the private sector. This is what happened during the New Deal and, later, to a much greater extent, the biggest public works/government spending project ever–WWII.

    Whew! Can you tell I majored in economics?

  2. The term “dead cat bounce” comes from the Wall Street saying that “even a dead cat will bounce if you drop it from high enough!”

  3. To save money, I’m going to try coloring my hair from a box rather than letting the salon do it. I’m scared though. I’ve never done it myself before. I hope I don’t mess it up!

  4. I haven’t been to the movies in a while. Movie tickets are pretty pricey in NY. I wait for movies to be released on DVD. Like Jenn, I also use compact fluorescent light bulbs.

  5. Last year I changed the lightbulbs to the green ones. Always take my lunch to work. Added a deduction to my taxes to get a little bit of extra money for a few months this year, will change it back later so I won’t owe at the end of the year. 🙂

    Turned the heat down to 68, wore a sweater. Turned the lights off in rooms not used. Unplugged any appliances that aren’t used daily.

    Every little bit helps, right?

Leave a Reply

Your email address will not be published. Required fields are marked *

Please prove your not an evil alien robot! *