By David O. Heishman –
Maybe, just maybe common middle income folks are smarter than politicians and economists. There’s much discussion these days about why consumers aren’t consuming. An opinion piece, “American’s aren’t in the Mood to Shop” by Al Lewis in the August 25th Wall Street Journal, lists larger retailers and details their woeful financial performance. Lack of consumer buying is given as reason for poor performance by nearly every one.
Thing is, politicians and economists weren’t hurt much by economic recession in recent years. Politician’s wallowing in Washington’s largess never noticed any tight squeeze between income and expenses. Economists, with sufficient reputation to make themselves heard above the crying masses, are protected from everyday financial worries by the world of academia, think tanks, or whatever other well benefitted organization they “work” for.
is a big difference between living with daily fear of losing your job, or your home and “knowing how it must feel” to lose them. There is a big difference between a family sitting around their kitchen table planning how to get through their immediate crisis, and a group of politicians sitting around a conference table pitching out economic pills which might cure pains they don’t really feel.
The family thinks immediate and practical. Do what it takes to keep their jobs and homes if they still have them. Biggest, most important move they make right up front is to cut spending. Fewer trips to Walmart for plastic junk. Fewer trips to J.C. Penney for clothes that will be worn twice before they turn into yard sale fodder. Fewer unnecessary miles on the gas tank and keep an eye out for something that runs cheaper.
Every little bit of money left after essentials and an occasional recreational breather, they save. But therein lies the rub. How do they save money?…