Inflated Economy And Our Relationships


USA Today reports that post-recession, the industries that “fell hardest may see a big rebound.” But how far away are we from this rebound – and are we ready?

There’s no denying this could be a much-needed boon for our economy. Recreational spending is down across the board but it has also forced couples in relationships to put off some big ticket items – things they may actually need – until things pick back up. These “pent up purchases” – whether necessary or not – are starting to be acted upon and may provide the necessary fuel to bring the economy out of the doldrums.

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Economists are disagreeing about how much pent-up purchasing power exists and when it will be unleashed on the much-needed economy.

According to USA Today:

May’s retail sales, out Thursday, were worse than expected, and consumer spending is expected to remain weak this quarter and next, IHS Global Insight chief economist Brian Bethune says. And that’s despite the fact that consumer confidence is growing — up strongly last month, according to the Conference Board’s consumer confidence index.

The Effect Of A Rising Economy On Your Relationship

But are we – as individuals, couples, families – ready to be the ones that will spur the economy on? As Americans, we want what we want, when we want it, so it’s understandable that we’re getting tired of drastically limiting their spending, waiting for huge deals or opting for lower-priced off-label brands according to a recent survey.

There’s hope on the horizon that this refusal to compromise (or perhaps what some would call selfishness!) could be the ticket out of the economic downturn. On the other hand, I believe this tightening of our belts has forced many of us to re-focus on what’s most important to us. There will no doubt eventually be a bounce-back, but is now a realistic time to hope for one? All the financial limits mentioned above are stressful, it’s true, but if we learned one thing from the past months it should be that overextending ourselves – as a nation as a whole and as individual households – is even MORE stressful in the long run.

Learning From The Economy

While the idea of “pent up purchasing” may be not far off on the horizon, many of us still are and will continue to feel the effects of the financial fallout.

In every downturn since World War II, one economist says, “The sharper the recession, the sharper the recovery. In virtually every case, forecasters underestimated how strong it would be. I think it was a product of pent-up demand.”

No matter if you decide to contribute to the economy by, say, buying that washing machine, or if the belt-tightening must continue, don’t forget the positive lessons that are to be learned from what we as a country have experienced over the past six months or so.

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