Does Living Frugally Hurt the Economy?

**AmyBoz** · 07-05-2008, 09:26 PM

http://www.wisebread.com/does-living...rt-the-economy

My answer is no, but this is an interesting article, nonetheless. Enjoy!

**Natalie** · 07-05-2008, 09:55 PM

Well, when they sent the economic stimulus, I paid a bill with it, instead of going and getting stuff I didn't really need.

**Greebo** · 07-06-2008, 05:26 AM

If everyone in the country stopped using debt tomorrow, yes, the economy would be seriously impacted.

If everyone in the country started buying less and stretching what they got out more this month, yes the economy would be seriously impacted.

But everyone in the country is NOT going to do those things tonight, next week, or this decade. We have spent 50 years becoming a culture of debt spenders. We're not going to change that overnight, and a tiny percentage of individuals doing what we're doing is not going to impact the economy seriously enough to affect anyone but ourselves.

Besides - I'm concerned about the economy of the Greebo and Ceashels household before anyone elses.

**pip** · 07-06-2008, 12:46 PM

Maybe the difference would be in how extreme people are with their frugality. Everything seems so extreme in our society. I think moderation is common sense. People could benefit their lives and families if they were more balanced either way, be it spending or not. Shades of gray, you know?

**Wendy99** · 07-06-2008, 05:05 PM

I think in the short term if everyone were to start it at once it would hurt the economy, but only for the short term. Once people started having more money they could spend more money ... I'm not sure .. maybe on the banks and credit card companies would be the only ones hurting

**HandyMom** · 07-06-2008, 06:36 PM

I think it would hurt the economy for all but the wealthy and the corporations.

**IntlMom** · 07-06-2008, 08:27 PM

In the end, like Greebo, I am ultimately concerned with the economy of my own household first!

**MomToTwoBoys** · 07-06-2008, 08:38 PM

I'm with everyone else; if people all started doing it tomorrow then yeah, it would make a huge difference and impact the overall economy. I think that everyone could stand to be a little frugal, whether it be by cutting their grocery bill or by using the things they really need every day.

**itlw8** · 07-07-2008, 02:09 PM

my grandparents were always frugal.... they bought a car when needed but paid cash not they did not own 2 cars.They still ate dressed when out they just never incured debt and saved for thier future and end.

Personally I think all those not living within their means are what is ruining the economy

**PrairieRose** · 07-07-2008, 09:39 PM

Short term it would hurt bad. In the long term we'd recover and be much stronger. Can you imagine if we went back to being a nation of debt free savers? Oh my.....what a concept.

**Karla** · 07-08-2008, 03:12 AM

I also must admit to being most concerned with our household first.

**earthymom** · 07-08-2008, 03:38 AM

If more people live frugally, more people will build savings = capital. Banks can lend that capital to businesses, individuals can invest that capital in businesses. . .

Lack of savings and huge debt load is bad for individual "economies" as in your own household. The same is true for businesses and nations. Lack of capital, huge debt, lack of resources to weather an emergency all spell disaster for the economy on any scale.

Sooner or later it will all catch up. Spending what we do not have as a society or as individuals may bring short term "prosperity" but it is an illusion.

**Greebo** · 07-08-2008, 05:45 AM

Not to mention, if more people saved and didn't spend their lives in debt, we'd be a lot less willing to accept our Government also being in debt up to their eyeballs.