To the poineer cook…..if we all ate unprocessed food – we’d all be in better health….I rarely eat anything out of a box and mostly that’s cereal or pasta….of course then the pharmaceutical companies would have a heart attack because no one would need their drugs…..to Sybil in Santa Rose – yeah there is a real decline in Americans income because there is a wealth distribution problem in this country – even though productivity has gone up – real earnings have decline…and that’s all because Corporate America is running this country through lobbyists and congressmen who stay can stay in office for 40 years…so until America wakes up and changes the rules – you can expect more of the same…with or without McCain….
We parked one car, cut out the restaurants and movies, expanded the garden by a third, cut down on the price and amount of the beer and wine we buy and get togethers we have and yet we still haven’t seen the savings. These are all things we were planning to do anyway but instead of saving more money all we’ve managed to do is keep the credit cards in the wallet.
Save Save Save is out motto…we have cut everywhere that we can. We drive less, eat differently, no Starbucks, pizza once a week, clothes only if we need it..NO Chargecards…cash only…and surprising enough…we are saving a lot ..what its a surprise to learn what you DON’T need!!
Hi! Well, in 3 months my cell phone contract will be up and I’ll stop using a cell phone by contract. No new clothes this year. Immediate family Christmas gifts only and that will be cut back to practical needs. I have stocked up foods on sale so we are set for the most part. we don’t eat out or order pizza out. All food is cooked at home. Stretched out the grass mowing this year, as we mow 5 acres which has been about 20.00 every mow. No new car,ours is 11 yrs old. We did dump our 20 year old propane for a new heat pump and elect furance. Which turns out to be a good decision, as propane pre buy would of been 4,600 this year, but our electric bills are showing we are using about 150 watts less than this time last year. Although we had to put it on our equity line, we are putting every spare penny on that, to get it paid off befor the interest rates go up.
Less drink (bottled stuff), less junk food, less consumer products, less brand name stuff, cancelled cable (antenna works well), downgraded Internet service, less driving (of the Prius, too).
Cutbacks allow me to continue saving at about the same rate.
Dear Sybil from Santa Rosa, CA. Thanks for your interesting comment. To add to that: experts routinely claim that processed foods are unhealthy. The spectacular rise in colon cancer rates in the 20th century are much attributed to the equally spectacularly increased consumption rates of processed meats. After reading your post I now sincerely hope the economy will go down the drain. We will all benefit by eating healthier! And it will be a good thing for Medicare budgets.
Since we went from a house on 2 acres w/walk-in pantry to a 2-bd. apartment, I’ve put off stocking up the way I used to. However, I’ve recently given in and turned our second bedroom into a pantry/computer room/guest room. Paying attention to and shopping for the best price per unit, cost per serving, and shortening the shopping list to only those essential and nutrient-packed foods are how I’m cutting back. There’s nothing I can do about gas prices except drive less, and I already do that. Rent I can do something about, and Hubby has applied for job transfers to lower-cost-of-living states. My apartment complex’s dumpsters and laundry room garbage can have been veddy, veddy good to me, yielding unwanted furniture, lamps, plastic storage bins, clothes, sheets & towels, Sunday papers (the ad section), and lots of other useful things. Oh, the things these stupid people throw away or abandon in the laundry room!
For Sybil in Santa Rosa: With processing comes packaging, and you pay for both when you’re buying processed stuff–not to mention transportation of the item.
My nutrient-packed short shopping list for produce goes like this: carrots, broccoli, red peppers, berries (black-, blue-, and straw-), plums, and navel oranges. I call this my “magic 8″ list. Although not produce, small red beans can’t be beat for antioxidants–even higher than blueberries!
I’m not a vegetarian, and do eat grass-fed meats, especially now–so much of the commercial meats have been polluted with soy, and soy is a hormone disruptor (bad for diabetics, people with thyroid conditions, and fertility). Unfortunately, there is no labeling or growing standard that covers the use of soy in feed, and yes, I’ve had to contact dozens of producers (both commercial and organic) to find out who isn’t using soy in their feed. My soy-allergic hubby and diabetic cat appreciate it.
We’ve cut back on car usage and have plenty of room to cut it back even more if need be. Thus our oil consumption is already down by 50%. We have not cut back on anything else and have no intention of doing so as long as we both have jobs.
With the change of jobs, my wife and I commute together, consolidated all trips, and downsized to one car. We also cut back on eating out to once a month. And we kept our utilities very low by keeping the AC unit off this August since the weather has been very comfortable and tolerable, and also since we are not home. Now we’re thinking that we probably wont turn our heat until December!
I haven’t changed my spending at all. I only buy what I really need. I only buy quality, not cheap junk that wears out. I only pay cash, never charge. I have tons of credit cards, and never use them. I’ve been that way since I was 18. I’m 51 now and have nothing to worry about because I was careful about money. I feel sorry for people who have to spend to feel good about themselves.
I started cutting back when our national debt reached $1 Trillion about 30 years ago. The current economic dissaster can only be postponed for so long before our creditors – China and OPEC – pull the plug and sink our economy for good.
We have stopped renting movies, no longer go anywhere out for dinner, no more starbucks, no fast food. We check in at every food bank , dropped health insurance at work, last yeaR MY HEALTH INS PREMIUMS WERE OVER 11,000.00 OR 987.00 PM FOR MED AND ANOTHER 257.00 DENTAL….NO VACATIONS, DROPPED TIME SHARE, SHALL I KEEP GOING..??
Since I work in Manhattan, I find myself going to the liquor store and either buying a ’shot’ of Vodka, or a half-pint, depending on the circumstances, versus hitting a bar or cocktail lounge and flipping a $’10′ spot, just for a drink (let’s not forget the tip)
With the help of a prudent long-term financial vision, the past 6 years, since 2002, have seen the best of times for a retiree such as me. Retirement has been everything and more of what one could have hoped for over a working lifetime.
No, Sybil, you are not a stupid laborer. It is the talking heads on network news programs who are stupid. They are the ones who said it was so great that people were using their homes to pay off credit cards debt so they could borrow more from them.
$1 chili at Wendy’s and a $1 pint of rice from the local chinese joint equals one good meal for $2 and no cooking.
I don’t believe anyone can ever be prepared for an economy gone bad yet the signs have been evident for years hence my insistence upon saving all I can. While the nation is addicted to credit I am a firm believer that saving for purchases without resortig to credit creates a firmer, stable economy resistant to abrupt changes caused by circumstances. As we are facing an approaching hurricane this weekend, the economy will once again become irradic with the pressures of investors, profit-takers, banks, etc… caused by a lack of liquidable equity due to our credit oriented society. I will continue my savings approach and reduce my outlays as appropriate and pray our nation will one day follow suit.
Well let’s see, on Aug 28th here on CNN Money there was an article about how middle class inflation adjusted income declined while worker productivity increased over the last decade. Productivity increased 18% even through two recessions. The article states: “Median real income for working-age middle-income families in the United States dropped $2,000 between 2000 and 2007, from about $58,500 to $56,500, the U.S. Census Bureau reported.” This is the first business cycle where middle class families have not shared in gains (profits). Families had less real income now than at the start of the cycle. Contrast that to the 90s (primarily Clinton years). Working middle class incomes rose 10%. Had that continued household incomes would have risen $3600 instead of fallen during this period.
Still, there was income growth 2000-2007. The article sources point out 90% of income growth went to the top 10% highest earners, the top 1% incomes grew 204%, while the top 0.1% had a 425% income growth. So, in general, if you make a lot of money, you did OK and spending is not an issue. For working Joes spending is an issue even for those in the high end of the middle income bracket.
So why are most cutting back on spending (if they haven’t already)? Let’s run down a list of a few reasons why:
1. Increasing unemployment/underemployment (unemployed for more than 6 months? Congratulations, you are no longer counted in the unemployed statistic). What about those with jobs having no medical coverage, working at a lower wage, or part time? Well, you are employed – too bad you have no money and can’t share in the American dream. That’s the way it goes – sorry, now get back to work, or I’ll find an illegal alien that will do your job at half the wage.
2. Rising medical costs – nice job there Republicans passing a drug bill that prevents Medicare from negotiating prices. Why should medical care destroy a family’s income or force them into bankruptcy (see the recent Harvard study that states as many as 80% of presonal banckruptcy is medical cost related, not scamming the system). We pay much more for medical care than any other industrialized nation and have little to show for it in terms of quality of health or life expectancy gains. Better hope you don’t get really sick.
3 Declining home values – poor fed and monetary policies that encouraged excessive housing growth and questionable financing schemes. Oh, since 20 and 30 somethings have less disposable income, who’s going to buy all those McMansions that Boomers and Gen Xers will want to sell in the next 10-15 years as they downsize? Wage/age demographics represent a hidden housing crisis that no one seems to address. Good bye home equity values and anticipated retirement age cash.
4. A tax structure that supports transfer of wealth to the monied class. That and hiding monied class income from taxation increases budget deficits and decreases ability to pay off the growing national debt. The tax code does little to increase the “acceleration of money” passing through middle class hands, the real engine of the economy – how many washer and driers, or TVs will the wealthiest 1% buy versus how many will the middle class buy. Hmmm, sounds like “demand” really does drive the economy, not this bogus “supply side economics” foisted on us by the conservatives. Now there’s the real “voodoo economics”.
5. An occupation in Iraq and Afghanistan that has drained the treasurey with little to show for it – Last I heard bin Laden is still on the loose and how much is this military expedition really costing, we don’t really know since so much is off the books (greater than $3 trillion some claim). Oh, I’m a retired military officer and understand the nature of war with its costs during and after. VA benefits for wounded troops? Forget it. Flag waving “Support our troops” Chinese made lapel pin American flag wearing Republicans don’t want to spend the money. Remember: Rumsfeld’s Dec 2004 comment: “you have to go to war with the Army you have, not the Army you want”? Costs money to care for post war injuries, wonder if that was considered in the ramp up to war. That’s a necessary and appropriate Government cost that will fuel deficits and the debt growth for years.
6. Growing energy costs – another good job there Republicans. Let’s Keep tax breaks for oil companies with record profits but refuse to develop comprehensive energy policies that look beyond oil or pass tax legislation that benefits “green” businesses. Even Fortune recognizes “green” as the next major economic wave and job growth engine. The Rebulican solution? Drill drill drill, which even the Dept of Energy says will have little impact on energy prices (on the order of cents per gallon reduction). So we postpone real action for 10-20 years. Carter recognized the strategic importance of reducing dependency on foreign oil and started a “Moon project” for improved mileage standards. Reagan and company immediately dismantled that of course. Think where we’d be today, if that plan had been allowed to continue.
7. Off shoring and outsourcing work overseas placing downward pressure on wages. How about increasing customs and duties a little to help pay off some deficit/debt and bring jobs back to the US? So let’s see, Bush comes into office with a surplus and this year they are projecting the largest deficit in history. So much for tax and spend Democrats.
8. Weak dollar – No doubt related to unsound economic policies (high deficit spending and national debt)
There are probably many other reasons why spending has or will continue to decline. In general its pretty clear, the current administration’s policies with help of their Repbulican cronies in Congress are outright hostile to the middle class. This war on the middle class is destroying ability to spend. Finally, the chickens are coming home to roost.
Cut back on travel,1 vehicle stays in the garage the smaller just for shopping,if we all were gas smart ooil would come tumbling down as there`s no shortage just manipulation.We have cut back on travel & all enrgy usage,even water usage,paying almost the same but stores & big oil need a message too as they want all the 444,s they can hold in their greedy little paws.The consumer has the power but is too weak,or will not relinquish a lifestyle they cannot afford but will try to live regardless,business & credit companies know it & are organized & will use it.
For quite a while now I’ve cut back on spending, especially for clothing. Not so much because I can’t afford it, but because I simply don’t need anything. Clothing is a good example: I use to buy things I didn’t really nned simply since it was a great deal. Not so much anymore. When you have a closet full of clothes you tend to be more selective.
That being said, spending as a whole in our household has probably increased. We recently got married and paid the entire $10k cost ourselves. And in October we’re doing some work on our kitchen – $8k.
I like to think we’ve gotten smarter with how we spend, not just cut back.
Luckily for me, I am an accomplished pioneer cook, so when I have a mind to (which, since my one person business is way down this year, I currently am of this mind), I can back my food budget all the back to bulk purchased basic ingredients. You know, like flour, rice, beans, inexpensive cuts of meats, supplemented by my own garden. I make the Dept. of Ag’s 200$ /person/ month economical food budget look extravagant.
Basically I don’t buy anything pre-processed. That processing is very expensive compared to the cost of food.
While I may be unusual in my readiness to skip the processed stuff, I think a lot of families are going to start realizing just how much all that processing costs. People will start to see how they can make a big reduction in their food costs ****WITHOUT**** sacrificing the quality of their diet. (Probably improve it, actually.)
When this realization is forced on enough people, I would get out of the way of the falling stocks for companies that rely on highly processed, expensive, food items for their profits.
I still buy what I need, and a few things that I like; everything else is just stuff.
I’ve made a conscious effort to save fuel and reduce imported oil usage by only driving or flying when it’s necessary.
It would be helpful if people would buy more strategically: try to buy less imports and more domestics instead. This keeps the jobs closer to home and the money closer to the family. There are some amazing deals out there now.
Yes! I’ve graduated from Ohio State, in 2007, and live back home with my parents because I have large amounts of student loans. I work for the Limited Brands Company doing accounting work for the Victoria Secret Division. Sorry fellas, no access to the models, but we do get nice perks! 
It’s going to take years to pay off the student loans, so the housing industry isn’t going to count on me to revive things for a few years. Neither renting nor owning is in the cards for awhile. I’ve cut back on mocca frappachinos-I brew my own starbucks coffee at home. According to “IOUSA”, medicare and medicade are going to bankrupt my generation, so the best thing I can do personally is belong to a gym. I work out an hour a day-cardio, etc and believe it’s a wise investment. Plus, by staying in shape, I cut down on additional food bills. As a result, I don’t eat more than I should. I do hang out with my fraternity buds but don’t go out as much as I used to. I cut back on bar specials, and buy cases of “beverages” and chill at home. You would be amazed at how much you save Paul! I also don’t eat out as much. Maybe a few times a month.
Times are tough Paul. Only buy essential clothes for the office. No trips to Florida or Bahamas! Save and invest. Money markets etc. Now is a really bad time to buy stocks. I guess the good news is I own my sled so I don’t currently have car payments (for now). I’ve had the ride since I was 16, so it may be time to get a new one soon.
How is the rest of america getting by?
BUCKEYES National Champs! Michigan-don’t lose your first game!! Ha. Ha. Ha!!!
Everyone is spending more, but getting less. That’s what inflation is all about. Money in many household budgets are being redirected to cover gas, food and other basic necessities. So it is not so much about “pulling back on spending” as it is rechanneling funds that were once spent on going to the movies or eating out, but are now spent on gasoline and groceries.
Spending? We spend just the same, except changed where we spend it. Fuel is the #1 expense. No new car, very few new clothes because of inflation, inflation of fuel. We can all get by with less, it just takes getting used too. We have 4 tv’s. Why? Because we were able too but didn’t need them. Dining out less…
I have 4 kids and my wife and I have made it a goal to eliminate all credit card debt.
So diners out, movies, cool stuff for the kids and new car are all out of the picture.
We should see daylight about the time the new prez gets into office.
We are waiting to see what he will do about a long term energy policy for the states. That will be the key to living or surviving for us!
Am I wrong or do all reports say there has been a drop in real income for the average American?
So Americans saved even less, borrowed even more, and so they can spend more inflated $ to buy less actual stuff.
Someone explain to me why this means the stock in retail companies goes up. Someone explain to me why this is often reported like it is a good thing.
I am just a stupid laborer. It seems to me that if people’s income goes down, their spending SHOULD go down. Why is it reported like a good thing when it doesn’t?
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Clearly, high energy costs and their impact on all transported goods is taking a larger proportion of peoples disposable income. Until the cost of oil and gasoline decline and allow people to save or dig out of what ever financial situation they are in, this anemic economy will continue to just limp along. Read NY Times articale “Dr Doom”, commercial real estate is most likely candidate for the next major federal bailout. More financial institution trouble ahead. Certain retail stocks surging is just blind speculation, to let someone else cash out.