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Frugal Living Anything to do with saving money, living for less, how to save, free stuff, etc.

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  #1  
Old 07-12-2016, 07:16 PM
SmallFlocksMom Female SmallFlocksMom is offline
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Default Are we ruining the economy?

(Please excuse me if this is the wrong board!)

I'd like to share with you a comment I received on my blog. It was one of those things that are like a splinter under your skin; it's annoying, hard to get rid of, and difficult to ignore.

Here it is:


"Unfortunately the economy of any country hinges on the residents of that country spending money. If everyone were as frugal as you, the economy would almost grind to a halt and unemployment would increase."


What do you think? (Yes, I did reply... I just wanted to hear what others have to say before I post what I wrote back).
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  #2  
Old 07-12-2016, 08:47 PM
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backlash Male backlash is offline
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They are correct.
However everybody will never be as frugal as you.
So there is zero chance you will ever crash the economy.
I am going to read your blog.
Sounds interesting.
Thank you
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Old 07-13-2016, 12:38 AM
Kachad Male Kachad is offline
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I am going to have to take a look at your blog too.

Agree with backlash, and a truly frugal person is a slim minority in todays throw away world.

A comment like that, I would associate with a minor troll perhaps.
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Old 07-13-2016, 01:10 AM
Doninalaska Doninalaska is offline
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The economy would change, but an economy existed before consumerism. Even in the 1960s most things were repairable. There was a small appliance guy, a TV repairman, and a large appliance repair guy. As the skilled workers demanded higher wages, and manufacturing wages went down or were shipped offshore, it became cheaper to replace things rather than fix them. Farmers made money even when everyone had their own garden, as it was not practical for each person to raise enough meat to feed a family, or raise wheat to make enough bread for the year. I don't think you need to worry about ruining the economy...people have grown too lazy to be self-sufficient. Even the Amish folks buy things, both from each other and from the "English".
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Old 07-13-2016, 09:51 AM
SmallFlocksMom Female SmallFlocksMom is offline
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So here is what I wrote back:

"That is an interesting point and one I never seriously thought about before reading this comment - mostly because we frugal, re-using-repairing-recycling, make-it-do-or-do-without folks are a very marginal part of the population and, though many people would like to save money, a lot less people are truly willing to make the change and live more simply and slowly. A walk through the average shopping mall is enough to convince one of that. People keep buying, and will keep buying unless something truly drastic happens.

Please note that I never said we should stop spending money altogether. I merely questioned what we should spend our money on. We buy food, clothes, household supplies, chicken feed, and more. Even the most down-to-earth, self-sufficient homesteaders who grow most of their own food, sew their own clothes, etc, have to rely on money to buy tools, seeds, livestock, fabric, and much more. The money economy is here to stay.

Also, I didn't imply that everyone should be as frugal as we are now. I don't consider frugality so much an ideal to be upheld, as a tool to be used. I certainly wouldn't say no to a new stove and a clothes dryer for those rainy spells, if we could easily afford them. Nor would I object to eating out once in a while, or going on a vacation. Our priorities right now, however, are different. We are a family living on a single income that has not always been stable, and if we want to survive and thrive on what we have, and put something into savings so we might one day own our home, we must do without some things. It is much more than just "doing without", though. It really is empowering when you learn to do more on less. It is empowering to know you are not helpless; if you know how, you can trim away a lot and still live happily and comfortably.

In my opinion, the true danger to economy lies not in people who spend less, but rather in those who spend more than they can afford. Do people who live extravagantly and go into debt boost the economy? Are people who eventually have to apply for government assistance, and can't make an example of responsible finances for their kids, an asset to the economy?

I'm not saying everyone's guideline should be to spend as little as they possibly can. That is a personal decision. I do, however, believe that healthier family budgets in individual families would lead to a healthier society and, by the by, to healthier economy as well, though there might be a temporary slow-down. I believe our current economic situation is unsustainable and we will need to undergo some forcible changes anyway. We rely too heavily on imported food and cheap Chinese manpower (read: slave labor). Will there be a crisis? Perhaps, but it's not going to happen because of people who are taking responsibility for their personal finances."

Yes, perhaps it was a case of minor trolling. But I still wanted to address the question.
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  #6  
Old 07-13-2016, 02:29 PM
Terri Terri is offline
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The money I have *IN* the bank is used BY the bank to make loans on other peoples homes and cars. Heck, I have a mortgage myself.

So, I think that my lack of recreational shopping is not negatively impacting the economy at all.

Do you know what DOES negatively impact the economy? Inflation does. And, the Feds have been creating new money (AKA printing money) for years. The more of a thing there is the less it is worth, and as the bread and meat and cars get ever more expensive the citizens will want to spend less. Any effect my frugality has on the economy is a drop in the bucket compared to what the Feds are deliberately doing.

The reason the economy is poor is because the feds are spending money they do not have, are paying high interest on their loans, and are taking it from the taxpayer. The higher the taxes the less people will spend. And, I must take care of my family even though the Feds are shaking the economy and taking high risks with any security an American can build

Last edited by Terri; 07-13-2016 at 02:37 PM.
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  #7  
Old 07-13-2016, 04:12 PM
Setanta Male Setanta is offline
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no, we benefit other parts of the economy, we don't support big business box store or franchises but frugal people support other industries. for example I am a frequent customer a (box store) tractor supply, as well as some local specialty shops that order spare parts and such, no I don't go out and buy a big expensive new tool, I get a worn out tool, or a broken one for free then I buy repair parts, or the materials needed to make stuff. I buy a lot of nails, screws, files, drill bits, sawblades, etc. I also buy a lot of canning jar lids from a specialty store that I can get them in bulk at. those stores would collapse if not for frugal people wanting things that are not viable in a bulk order business like Walmart. I am not hording my money, I am usually broke but I think strategicly and get the most out of every cent. and I also do most of my purchases at locally owned stores that employ a few local people, without the frugal regulars these stores would collapse and the employees would be on unemployment (mostly college kids and others who have no skills yet and have few other choices in a depressed rural area). its the opposite of trickle down theory, its the bottoms up theory that supports the lower levels of the economy, the foundation, smaller logistical support that the rest of the economy is built on, without that foundation (easily forgotten minor parts of the economy, not a big centralized place like wally world) the entire system collapses. being frugal I just prefer to deal with people directly at the bottom of the economy.
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Old 07-13-2016, 07:52 PM
CountryMom22 Female CountryMom22 is offline
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In today's world, there is no way for anyone not to support the economy. We are the economy! Every cent we spend, be it on tools, feed, clothes, vacations, video games, entertainment, housing, taxes, etc. feeds back into the economy. It's what makes the world go round, as they say.

The fact that some of us are more careful or frugal, with regards to how much we spend or where we spend it, doesn't impact the economy as a whole. It does allow us to voice our opinions about what is important to us by voting with our money, so to speak.

Don't worry, the frugal among us will not be the downfall of the economy. The government will be!
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Old 07-13-2016, 09:33 PM
ScrubbieLady ScrubbieLady is offline
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How do I get to your blog?
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  #10  
Old 07-13-2016, 10:31 PM
jvcstone jvcstone is offline
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according to the Austrian school a strong economy begins with and depends on savers. As mentioned above-those savings are what (in a strong economy) banks loan out for, the most part, capital investment (expanding business, hiring more, producing more). The loan you make to the bank (savings) is paid interest, while the loan made by the bank is paid a little more interest so the bank makes a fair profit. Since at least the early 70's the federal reserve has been going about it wrong (Keynesian school) where lots of money- is printed, thrown around, and spent foolishly creating huge financial bubbles that can do nothing but burst resulting in massive (paper) losses. The famous boom and bust economy that does the average person little good, while rewarding a few (insiders usually).

yes spending wisely is good for both the individual and the economy in general. Consumer spending financed through borrowing on the other hand is not so good, and in the long run hurts us all.

JVC
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Old 07-14-2016, 02:08 AM
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backlash Male backlash is offline
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Quote:
Originally Posted by ScrubbieLady View Post
How do I get to your blog?
I found it here.
https://domesticfelicityblog.wordpress.com/
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  #12  
Old 07-14-2016, 01:05 PM
ScrubbieLady ScrubbieLady is offline
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Thank you.
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  #13  
Old 07-15-2016, 05:51 AM
SmallFlocksMom Female SmallFlocksMom is offline
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I also wanted to add that if an economy hinges upon over-spending and debt, I think that kind of economy is not sustainable and I'd be glad to contribute to its demise (and the birth of a new kind of economy).
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  #14  
Old 08-22-2016, 04:14 PM
Pmwizard Male Pmwizard is offline
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Everyone does not have to get on the spending treadmill. Each person should do what is best for themselves. Buying things only gives you short term gratification. Then you are stuck with what you bought, or debt to payoff with interest. Since I have retired, going out spending on things is not a priority anymore. I make do with what I currently own.
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Old 08-22-2016, 09:04 PM
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rubyyarn Female rubyyarn is offline
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How much stuff can anyone own before they are full up and fed up? TV has more and more commercials and they seem to be more and more frantic. Buy! Now! Don't Wait!!!

All to convince people with no money to spend it anyway. Frugal is good. There is satisfaction on having less but enjoying it more.
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Old 08-23-2016, 11:17 AM
SmallFlocksMom Female SmallFlocksMom is offline
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Quote:
Originally Posted by rubyyarn View Post
TV has more and more commercials and they seem to be more and more frantic. Buy! Now! Don't Wait!!!

All to convince people with no money to spend it anyway.
We personally don't have a TV, and every time I happen to be at my Mom's, who always keeps her TV on, I'm bombarded by commercials and wonder how people can take it. After about 5 minutes I'm seized with the urge to start throwing things at the screen.
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Old 08-23-2016, 11:47 AM
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Jmho

Buying and spending is a 100% personnal decision . Trying to blame advertising and sellers is a an excuse.

The economy does not depend on overspending or underspending by individuals at all. Supply demand always repeat always works. .., that is the basis for our economy. In today's world on " on time" delivery systems used by all major retainers that is more true than ever.
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work like you don't need the money- love like you never been hurt and dance like no one is watching !!

Last edited by MissouriFree; 08-23-2016 at 04:46 PM.
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  #18  
Old 08-23-2016, 07:59 PM
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rubyyarn Female rubyyarn is offline
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Apparently Madison Avenue thinks the incessant drone of advertising works because they keep upping the ante. Louder, more often until I am certain there is more advertising than show.

I think most people in here have learned not to fall for this stuff. But there are a whole lot of people out there who think a credit card is free money and spend until the thing is maxed out.

I know it comes down to personal choice, which is why I ignore shows that just seem to be a vehicle for advertisement.
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Old 08-24-2016, 04:40 PM
wildturnip Female wildturnip is offline
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Advertising obviously works; otherwise they wouldn't spend billions of dollars on TV ads.

I feel the same way about TV. I can't stand the noise. So thankful we don't have one and didn't have one when our kids were growing up. They have thanked me too.
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  #20  
Old 08-25-2016, 10:22 AM
Setanta Male Setanta is offline
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advertising only works on the weak minded, kind of like the force,

sometimes I watch commercials just to the stupidity and how they are trying to manipulate the viewers subconscious. watching for obvious bogus claims, etc, real fun if you have a cynical mindset watching them (and a good sense of sarcasm).

saw a commercial for a local car dealership, they are a lemon dealer (used cars, low prices, loans through the dealership with no credit checks, sleezy used car salesmen at their most stereotypical). the commercial featured a couple discussing the company and the wife is constanly getting excited and impressed, about the selection, the prices, no credit check, payments made directly to the dealership, the husband mentions he dealership won't even consider that they were in bankruptcy, and the wife gets even more excited, after a few more talking points the wife grabs her purse and runs out, the husband asks where she is going, to which she excitedly reples that she is going to the dealership to buy another car.

as I was watching I laughed because they so casually mentioned their bankruptcy as no big deal, and the behavior they displayed was the kinds of things that lead to bankruptcy, poor planning, impulsive big spending, undeserved credit, etc.

was good to laugh at but was not going to go anywhere near a dealership (except my friends part time place, he is willing to take firewood as payment, and does repairs for firewood, he uses 50 cords a year)
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