What kind of shape would we be in if everyone took heed to this. (1 Viewer)

[James W. Johnson]

While this advice may be good in many ways, is this kind of thinking really healthy for our economy?

http://moneycentral.msn.com/content/...ine/P92985.asp

 

[Joe Szott]

I think the reverse question works better:

If our economy depends so greatly on people buying new stuff all the time, is our economy healthy for us?

 

[Kenneth]

Since purchasing used items is generally done locally or within the country of the purchaser it might help the economy more. If you buy something new (especially if it is imported), much of the money may not end up in the local economy at all.

Kenneth

 

[andrew markworthy]

Depends how much you like capitalism, I suppose.

 

[D. Scott MacDonald]

I'm not sure if I understand the purpose of the question. If I buy a $60,000 car that is better for the economy than if I buy a $23,000 car, but when I purchase a car I gaurentee you that I'm more worried about my personal economy than the economy in general. Likewise, carrying debt is usually good for the economy, but that doesn't mean that it's good for me. I'm sure that a similar argument can be used for buying things on ebay, or avoiding taxes by purchasing on the internet.

In many instances, what is good for the whole is not what's best for the individual. Does that mean that personal frugality is evil? I would call it responsible.

I agree that it would weaken the economy if everybody started to do this, which is why we have recessions. When people loose their jobs, they tend to not spend as much money, and this creates a downward spiral. I would not worry, however, that such advice will lead to the downfall of the economy, as many people will always opt for the ease and prestige of spending over the inconvenience and perceived shame of frugality - not to mention the "mine is better because I paid a lot for it" attitude (which reminds me of a semi-recent DVD thread).

 

[Charlie C]

"If our economy depends so greatly on people buying new stuff all the time, is our economy healthy for us? "



good way of looking at it Joe, although, we really dont have much of a choice nowadays. therefore her article aint that off.

 

[Chris Lockwood]

> If our economy depends so greatly on people buying new stuff all the time, is our economy healthy for us?

That's what an economy is- people buying stuff. So your question doesn't really have any meaning.

 

[MarkHastings]

I assume athletic supporters are the exception?

 

[James W. Johnson]

lol , yeah and mouthpieces.

 

[Francois Caron]

Here's a thought. Considering most products are now manufactured overseas, buying used would cut into THEIR business, not ours.

 

[D. Scott MacDonald]

Yes and no. If you buy a product from a retail store, there are many hands in the pot - the store itself, the truckers, the wholesalers, and the company that manufactures the product. The company that manufactures the product, can further be broken down from the CEO all the way down to the workers who produce the product. In many cases the Company is domestic, but the workers are oversees. In other cases, the company itself is overseas, but at least the store, truckers, wholesalers, etc. get a cut. It's also getting very difficult to differentiate a "domestic" product from a "foreign" product, as many foreign companies design and build their products domestically and many domestic companies do the opposite (with all sorts of permuations in between).

The economy is a very complicated beast.

 

[Kenneth]

Since someone has to buy something new in order for someone else to sell something used I don't think it is that big a problem. The idea of always buying something new may be good for the economy but it is lousy for the environment. Pending European legislation based on 2002/96/EC (The Waste Electronic and Electrical Equipment directive) will force some companies to rethink their approaches to things when they are forced to recycle or reuse their products. A used market will also provide many of the logistical economic tie-ins similar to new (transportation, store front, refurb house, etc).

Kenneth

 

[Todd Hochard]

Excellent point, Joe.

There are lots of people willing to prop up our economy by mortgaging most of their future earning years to get stuff NOW NOW NOW. I am not one of them. While I may be a "bad little consumer," or perhaps even anti-American, I won't be struggling to maintain my lifestyle (as the sole earner for a family of four) should I lose my job.

Given the current hyper-inflationary real estate market, I'm not even sure home mortgages should be given a pass, anymore. I cannot fathom how this can continue, much longer.

Todd

 

[Joe Szott]

My question was about buying NEW stuff, not stuff in general. We'll always need to buy things in our society, hence an economy. My point specific is why must the economy demand that we buy everything new for it to remain healthy?