Thrifty Americans Threaten Recovery
24th August 2009
Everything hums along like clockwork as long as consumers consume. A wrench is thrown into the entire affair if consumers choose not to spend. And so, we find economists worrying that the genius of the stimulus is threatened by a reticence among Americans to open their wallets. This, of course, raises a whole set of further questions: what would happen to the economy if Americans began to barter for, rather than purchase, at least some of the things they need? What if neighbors began, say, sharing mowers, roto-tillers, ladders, and other tools rather than filling every garage in the neighborhood with same items? What if more Americans began growing some of their own food, making do with one car rather than two, eating at home, and generally attempting to live lives characterized by simplicity and frugality? If Americans are already beginning to make changes in this direction, are they recklessly threatening the economic recovery?