Yesterday I wrote about Dave Ramsey and his common sense advice that started Dave and me on a path of debt-free living. It’s been in the news lately that due to the recession, Americans have been reducing their personal debt. I think this is a good thing! “Experts” disagree with me.
Robert J. Samuelson wrote an article in the Washington Post Monday entitled “The Saving Mentality is Hurting the Economy’s Recovery”. If you want to read the entire article, click here.
From the article:
“ “Consumers are deleveraging (reducing debt) . . . and rebuilding saving faster than expected,’ writes economist Richard Berner of Morgan Stanley. In 2007, the personal savings rate (the share of after-tax income devoted to saving) was 2 percent. Now it’s about 6 percent. Temporarily, this hurts buying...”
Well, you be the judge, but if spending is going to save the economy, then let’s do that spending only when we can afford it!
Today’s picnic spot at the Port of Camas, WA, along the Columbia River
Since savings cost the banks money in interest payout (very little), paying down debt reduces there exorbitant fees charged, do you think there might be some sort of influence by the financial industry to try to coerce the media into vilifying being debt-free?
ReplyDeleteI certainly wouldn't want to spend when I don't have the money to do so. It might help the country's economy by increasing spending but it would hurt MY economy. My father always told me to buy only when I had the money and NEVER charge anything. We do, from time to time, charge something BUT pay it off when the bill arrives.
ReplyDeleteMike and I are debt free also. Our spending has changed dramatically since we are both retired....we have made adjustments in our spending. Our buying power isn't what it was when we were both working but we have what we NEED and are very happy with our life.
It just doesn't make sense to spend money you don't have....whether it is a person or a country.
Mike & Gerri (happytrails)
We tend to disagree with the so called experts on so many levels. They want to keep us in this debt filled lifestyle and we love being so far away from it.
ReplyDeleteThese experts after all are just people with an opinion, well we have our own opinion and that is what we live by since after all it is our life not theirs!
Exactly!
ReplyDeleteso what is a person suppose to do??..save spend or throw your hands up in the air and say 'what the heck?'
ReplyDeleteI'm with sue and doug, what do you do then?
ReplyDelete