american austerity

American Austerity, or the lack there of

Isaac Mostovicz writes...

While the US administration imposes budget cuts to mend the state of the country after the financial crisis, American consumers are showing behaviour that is unexpected of a country facing huge amounts of debt.

They called it the “new austerity”, which would see the spending habits of Americans to permanently change due to the events of 2008/2009. However, the Wall Street Journal has published data that goes quite against this grain. Instead of purchasing only convenience goods, a study has suggested that in February of this year, US consumers spent an annualized $1.2 trillion on non-essential items including pleasure boats, jewellery, alcohol and gambling. This spending was up 3.3% from a year earlier, compared to 2.4% for essential items such as food, housing and medicine.

So what does this tell us about the modern-day recession? Rather than a desperate hoarding of the essentials in a thrifty spirit, US consumers seem to be brimming in confidence in their economic future and splurging out on luxury treats. This obviously is good news for these luxury industries. Rather than a spirit of austerity, American consumers are still seeking the dream and not letting an economic crisis bring them down.

Tama Rodemeyer says of this article...

Fantastic website you have here but I was curious about if you knew of any forums that cover the same topics discussed here? I’d really love to be a part of community where I can get responses from other experienced individuals that share the same interest. If you have any suggestions, please let me know. Thank you!

You say of this article...

Bookmark and Share