So Many Shoes, So Little Money – Blog

Are Shopaholics Dead?

March 13th, 2009

Our consumer society has stopped consuming. Whether for big ticket items or smaller desires, we have stopped shopping. But is this a temporary reaction to the current economy or something deeper and permanent? Have consumers changed their ways for good?

Consumer spending makes up approximately 70 percent of the economy. It topped out at 71 percent in 2005. Current economic conditions combined with the upcoming credit card bust (see “Credit Cards and Hemlines”, December 1, 2008) means that many folks will not be able to borrow money at good rates for a while. People who have lost 40+% of their net worth over the last six months won’t soon forget this year. Stories of hoarding for years after the great depression are common. On the other hand, 20 years from now, consumers who are now in their 20’s may not remember this downturn when they reach their peak spending.

Prevailing wisdom says that permanent change will never happen to the American consumer. What do you think? Has our love of owning plentiful and fine things altered permanently?

Filed under: Shopping

Tags: Shopping, spending