There has been a great revolution (if you can call it so) going on in America and that is the consumers are readjusting their priorities and trying to stay within their means. Although it is not true for every body, and it is not willingly been done but it is happening because they are so stressed out with money issues? People literally don’t have money to splurge on things which they don’t need. This is due to homes being underwater, very restricted access to home equity lines of credit, maxed out credit cards, losses in 401K and retirement funds and also in stock markets investments.
People are also worried about their jobs, and their future and they are in no mood to spend mostly because they are not sure what will happen the next day or how will they pay back their debts. Although look at another way, this is not good that when people don’t spend money, the economy would not grow, but on the other hand for an uncertain future where even pensions and social security and high health costs will eat into whatever you are saving now, saving more now to be debt free or less debt during your retirement years is a good thing to come out of this recession. I do hope that this trend of consumer readjustment of their spending priorities continues for the sake of themselves and for the economy as a whole because the less we consume, the less we will have debt for your own household and for the country (which is now drowning in debt).