Comments on: Newsweek Suggests it’s Your Patriotic Duty to Stop Saving and Start Spending http://steadfastfinances.com/blog/2009/03/17/newsweek-suggests-its-your-patriotic-duty-to-stop-saving-and-start-spending/ A Personal Finance & Investing 101 blog that delves into current events, consumer education, and techniques to improve your bottom line. Sun, 21 Mar 2010 18:59:24 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Newsweek Suggests it Your Patriotic Duty to Stop Saving and | debt solutions http://steadfastfinances.com/blog/2009/03/17/newsweek-suggests-its-your-patriotic-duty-to-stop-saving-and-start-spending/comment-page-1/#comment-2813 Newsweek Suggests it Your Patriotic Duty to Stop Saving and | debt solutions Tue, 16 Jun 2009 00:20:45 +0000 http://steadfastfinances.com/blog/?p=303#comment-2813 [...] Newsweek Suggests it Your Patriotic Duty to Stop Saving and Posted by root 57 minutes ago (http://steadfastfinances.com) Without the federal government lending corporate america your tax dollars we actually paid attention to personal finance articles like the 60 solution btw one of the best personal i do agree with you on the voting majority comment powered by wordpress usi Discuss  |  Bury |  News | Newsweek Suggests it Your Patriotic Duty to Stop Saving and [...] [...] Newsweek Suggests it Your Patriotic Duty to Stop Saving and Posted by root 57 minutes ago (http://steadfastfinances.com) Without the federal government lending corporate america your tax dollars we actually paid attention to personal finance articles like the 60 solution btw one of the best personal i do agree with you on the voting majority comment powered by wordpress usi Discuss  |  Bury |  News | Newsweek Suggests it Your Patriotic Duty to Stop Saving and [...]

]]> By: Should You Adopt President Obama’s ‘Pay-As-You-Go’ Rule in Your Family Budget? | Steadfast Finances http://steadfastfinances.com/blog/2009/03/17/newsweek-suggests-its-your-patriotic-duty-to-stop-saving-and-start-spending/comment-page-1/#comment-2283 Should You Adopt President Obama’s ‘Pay-As-You-Go’ Rule in Your Family Budget? | Steadfast Finances Fri, 08 May 2009 02:45:54 +0000 http://steadfastfinances.com/blog/?p=303#comment-2283 [...] Sounds a little far fetched right?  Just weeks ago, main stream media went out of their way to remind us it was our patriotic duty to get out and spend. [...] [...] Sounds a little far fetched right?  Just weeks ago, main stream media went out of their way to remind us it was our patriotic duty to get out and spend. [...]

]]> By: Bonus Money Links - Bonus as in not really for performance, but just cause I have a contract http://steadfastfinances.com/blog/2009/03/17/newsweek-suggests-its-your-patriotic-duty-to-stop-saving-and-start-spending/comment-page-1/#comment-1931 Bonus Money Links - Bonus as in not really for performance, but just cause I have a contract Wed, 18 Mar 2009 23:20:12 +0000 http://steadfastfinances.com/blog/?p=303#comment-1931 [...] Newsweek Suggests it s Your Patriotic Duty to Stop Saving and Start Spending [...] [...] Newsweek Suggests it s Your Patriotic Duty to Stop Saving and Start Spending [...]

]]> By: SJ http://steadfastfinances.com/blog/2009/03/17/newsweek-suggests-its-your-patriotic-duty-to-stop-saving-and-start-spending/comment-page-1/#comment-1928 SJ Wed, 18 Mar 2009 21:36:00 +0000 http://steadfastfinances.com/blog/?p=303#comment-1928 Well, I guess my question is that isn't our economy productive abilities outstrip our consumption normally? If the consumer cuts back X% and the industry does the same doesn't the consumer have to cut back more? Are we too efficient :O! Iono... it's odd to me Well, I guess my question is that isn’t our economy productive abilities outstrip our consumption normally?
If the consumer cuts back X% and the industry does the same doesn’t the consumer have to cut back more?
Are we too efficient :O! Iono… it’s odd to me

]]> By: Matt http://steadfastfinances.com/blog/2009/03/17/newsweek-suggests-its-your-patriotic-duty-to-stop-saving-and-start-spending/comment-page-1/#comment-1924 Matt Wed, 18 Mar 2009 17:56:20 +0000 http://steadfastfinances.com/blog/?p=303#comment-1924 @ Darwin I slightly disagree in our ability to spend irrationally anytime in the near future. Maybe I'm an optimist (or pessimist depending on your point of view), but I think we've collectively realized that overspending is a bad thing. Since 1 in 5 homes are underwater, and everyone has heard horror stories of foreclosures, I'm not sure anyone will be willing to bet the farm for a family vacation to Disneyland. I do agree with you on the voting majority comment. Tapping the baby boomers anger about their halved retirement accounts will be critical in the 2012 election. @ Darwin

I slightly disagree in our ability to spend irrationally anytime in the near future. Maybe I’m an optimist (or pessimist depending on your point of view), but I think we’ve collectively realized that overspending is a bad thing.

Since 1 in 5 homes are underwater, and everyone has heard horror stories of foreclosures, I’m not sure anyone will be willing to bet the farm for a family vacation to Disneyland.

I do agree with you on the voting majority comment. Tapping the baby boomers anger about their halved retirement accounts will be critical in the 2012 election.

]]> By: Darwin's Finance http://steadfastfinances.com/blog/2009/03/17/newsweek-suggests-its-your-patriotic-duty-to-stop-saving-and-start-spending/comment-page-1/#comment-1923 Darwin's Finance Wed, 18 Mar 2009 17:15:30 +0000 http://steadfastfinances.com/blog/?p=303#comment-1923 Sadly, it doesn't require a call from a prominent magazine or administration officials to spend above our means. We've demonstrated our capacity or exhuberant spending for decades and it has finally caught up with us. The current downtrend in consumer spending is just a blip and as soon as housing bottoms within the next year or two, you'll see a whole new round of cash refis (using your equity as a piggybank) and credit card debt increases. The only difference this time around? Instead of wrecking our economy and burdening the destroyers with the liabilities, we've now taken on so much debt that our children will never be able to pay it down. They'll be paying for it after all, since the people that did this will be the voting majority in 30 years and we all know the politicians set policy based on what provides the most benefit in the next voting cycle. Sadly, it doesn’t require a call from a prominent magazine or administration officials to spend above our means. We’ve demonstrated our capacity or exhuberant spending for decades and it has finally caught up with us. The current downtrend in consumer spending is just a blip and as soon as housing bottoms within the next year or two, you’ll see a whole new round of cash refis (using your equity as a piggybank) and credit card debt increases.

The only difference this time around? Instead of wrecking our economy and burdening the destroyers with the liabilities, we’ve now taken on so much debt that our children will never be able to pay it down. They’ll be paying for it after all, since the people that did this will be the voting majority in 30 years and we all know the politicians set policy based on what provides the most benefit in the next voting cycle.

]]> By: Matt http://steadfastfinances.com/blog/2009/03/17/newsweek-suggests-its-your-patriotic-duty-to-stop-saving-and-start-spending/comment-page-1/#comment-1922 Matt Wed, 18 Mar 2009 16:53:06 +0000 http://steadfastfinances.com/blog/?p=303#comment-1922 @ Shaun, My thoughts exactly. The article didn't really push the idea you should spend more as much as I thought, but the cover was way out of line in my humble opinion. As I said, maybe they pulled a Geraldo and tried to create headlines just to get people to buy their publication. I like that "social finance" line. That sounds so much better than my "you are indirectly helping the economy with your taxes". haha!!! @ Shaun,

My thoughts exactly. The article didn’t really push the idea you should spend more as much as I thought, but the cover was way out of line in my humble opinion. As I said, maybe they pulled a Geraldo and tried to create headlines just to get people to buy their publication.

I like that “social finance” line. That sounds so much better than my “you are indirectly helping the economy with your taxes”. haha!!!

]]> By: Matt http://steadfastfinances.com/blog/2009/03/17/newsweek-suggests-its-your-patriotic-duty-to-stop-saving-and-start-spending/comment-page-1/#comment-1921 Matt Wed, 18 Mar 2009 16:47:36 +0000 http://steadfastfinances.com/blog/?p=303#comment-1921 @ SJ It's somewhat complicated, but there are 3 main arms of spending in the US -- Government, Business, and Consumer. Now that business and consumer spending have fallen a bit, the government is stepping in. Truth is, American business has been inflated beyond its sustainability because consumers were spending like crazy. If the consumer cuts back 10%, then business must cut back an equal or greater amount. The issue now is that we're "unwinding" (Bernanke's word of choice) businesses at a slower rate so the system doesn't collapse overnight and the jobless rate skyrockets. Hope that helps a little, and if anyone has a better way of stating it, please chime in. @ SJ

It’s somewhat complicated, but there are 3 main arms of spending in the US — Government, Business, and Consumer. Now that business and consumer spending have fallen a bit, the government is stepping in.

Truth is, American business has been inflated beyond its sustainability because consumers were spending like crazy. If the consumer cuts back 10%, then business must cut back an equal or greater amount. The issue now is that we’re “unwinding” (Bernanke’s word of choice) businesses at a slower rate so the system doesn’t collapse overnight and the jobless rate skyrockets.

Hope that helps a little, and if anyone has a better way of stating it, please chime in.

]]> By: Shaun http://steadfastfinances.com/blog/2009/03/17/newsweek-suggests-its-your-patriotic-duty-to-stop-saving-and-start-spending/comment-page-1/#comment-1918 Shaun Wed, 18 Mar 2009 15:51:16 +0000 http://steadfastfinances.com/blog/?p=303#comment-1918 ...I'm horrified by that cover. At first, I thought it was just photoshop. But of course, no it isn't. We do not have any "patriotic duty" when it comes to our personal finance -- it's not social finance, it's personal finance. Even then, artificially spending just creates another bubble that's going to burst, keeping people in debt, insecure and ready to wreck economic hell the next time our economy gets bumped. I'm a little ticked now. :P …I’m horrified by that cover. At first, I thought it was just photoshop. But of course, no it isn’t.

We do not have any “patriotic duty” when it comes to our personal finance — it’s not social finance, it’s personal finance.

Even then, artificially spending just creates another bubble that’s going to burst, keeping people in debt, insecure and ready to wreck economic hell the next time our economy gets bumped.

I’m a little ticked now. :P

]]> By: SJ http://steadfastfinances.com/blog/2009/03/17/newsweek-suggests-its-your-patriotic-duty-to-stop-saving-and-start-spending/comment-page-1/#comment-1914 SJ Wed, 18 Mar 2009 06:21:16 +0000 http://steadfastfinances.com/blog/?p=303#comment-1914 I really don't understand how we save so little. I also don't understand how our economy works. If I understand properly we're capable of producing much more than we need, so we have to be bloated. So isn't that kind of a catch-22? So confused... I really don’t understand how we save so little. I also don’t understand how our economy works.
If I understand properly we’re capable of producing much more than we need, so we have to be bloated. So isn’t that kind of a catch-22?
So confused…

]]> By: Matt http://steadfastfinances.com/blog/2009/03/17/newsweek-suggests-its-your-patriotic-duty-to-stop-saving-and-start-spending/comment-page-1/#comment-1912 Matt Wed, 18 Mar 2009 04:48:53 +0000 http://steadfastfinances.com/blog/?p=303#comment-1912 I'd say the ultimate patriotism would include self sufficiency and not rely on foreign entities loaning us money. Attitude reflects leadership, and if the U.S. Government would lead by example, maybe that would be a great start. I’d say the ultimate patriotism would include self sufficiency and not rely on foreign entities loaning us money.

Attitude reflects leadership, and if the U.S. Government would lead by example, maybe that would be a great start.

]]> By: Michael Harr http://steadfastfinances.com/blog/2009/03/17/newsweek-suggests-its-your-patriotic-duty-to-stop-saving-and-start-spending/comment-page-1/#comment-1910 Michael Harr Wed, 18 Mar 2009 03:59:02 +0000 http://steadfastfinances.com/blog/?p=303#comment-1910 I'm with you, the idea of asking us to spend to save the economy is about as myopic as it gets. Even if spending were to increase at the expense of savings, it would only be a band aid to the larger issues that will no doubt impede growth later--namely retirement savings and healthcare. The growth of funding for entitlement programs continues to loom in the distance and if a healthy savings rate reduces dependence on Social Security, I'll take that over spending our way out of recession only to fall flat later. Think about it. If we have savings going into the markets, the market increases. If we are more prepared for retirement, we need less money from government programs. If we have an economy built on cash instead of credit, we will be stronger for it. If anything, it's our patriotic duty to ensure we save money so we can take care of ourselves with dignity rather than hoping Uncle Sam--err, our children's tax dollars--will bail us out later. Myopia is what got us here...solving the problem in kind is ludicrous. I'll keep saving, thank you very much. I’m with you, the idea of asking us to spend to save the economy is about as myopic as it gets. Even if spending were to increase at the expense of savings, it would only be a band aid to the larger issues that will no doubt impede growth later–namely retirement savings and healthcare. The growth of funding for entitlement programs continues to loom in the distance and if a healthy savings rate reduces dependence on Social Security, I’ll take that over spending our way out of recession only to fall flat later. Think about it. If we have savings going into the markets, the market increases. If we are more prepared for retirement, we need less money from government programs. If we have an economy built on cash instead of credit, we will be stronger for it.

If anything, it’s our patriotic duty to ensure we save money so we can take care of ourselves with dignity rather than hoping Uncle Sam–err, our children’s tax dollars–will bail us out later.

Myopia is what got us here…solving the problem in kind is ludicrous. I’ll keep saving, thank you very much.

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