If everyone suddenly becomes frugal ... it will have a sudden impact on the economy. I agree with you, that the more frugal a community is the more stable they can manage a recession. But, its the suddenlyness that is dangerous, which is why the politicians are telling us that everything is ok. The consumer price index has already declined for 4 months. They don't want a panic.
Another danger is high inflation, like we are seeing with food prices, because it can create a panic.
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Yes but..
Submitted by Curt on May 10, 2008 - 16:29.
If everyone suddenly becomes frugal ... it will have a sudden impact on the economy. I agree with you, that the more frugal a community is the more stable they can manage a recession. But, its the suddenlyness that is dangerous, which is why the politicians are telling us that everything is ok. The consumer price index has already declined for 4 months. They don't want a panic.
Another danger is high inflation, like we are seeing with food prices, because it can create a panic.