The Comcast office here doesn't have any noticeable security. But then its in a suburb with relatively low crime rates.
The $200 bill could be explained if they have bundled service including cable TV, telephone and internet service. That could easily hit $200 level. I'd assume they offer all that most places.
I don't really see anything that explains why you'd think people are paying their cable bill before buying groceries.
Before buying a product, I always check to see where it's made. Frankly, I think it's ridiculous we simultaneously owe China billions and billions of dollars in debt, and have a huge trade deficit with China, sending them billions MORE dollars every month. I'm no economist, but this seems like a bad balance. We're borrowing their money, to buy their goods? (And, of course, to ship their money off to destroy / rebuild Iraq, and simultaneously buy Iraqi oil.)
There's a few other reasons I prefer not to buy things made in China: it's often poorer quality, they don't have the same safety testing, a lot of the cost is going toward transport (oil, pollution) etc. Sometimes I still buy things made in China - sometimes I can't find certain products made anywhere else. But if I have the choice, I'll pay more and buy the made in USA item. I'd rather keep the money going around locally, maybe keep a neighbor or family member employed.
Thanks for writing this Philip -- you have articulated a few of the things I have been thinking of (simply, spend or save) and gone beyond with a sustainable solution. That our individual actions can make a collective difference has been reinforced by the current state of the economy; but what to do about it for our personal financial well-being and the economy's well-being in order to bring stability has been the big question. I like the idea that we can promote saving and spending, in the right measures.
I'm old fashioned and believe that a contract is a contract is a contract... and that it takes two willing parties to enter into a contract. If the terms of the contract cannot be met, then both parties should feel the pain so they are wiser next time. Certainly, the poor, the ignorant, and the greedy were preyed upon by some unscrupulous lenders, but why should the American taxpayer subsidize their efforts to possess more house than their income can afford? The sooner we get through this housing pain, the sooner we can begin the recovery. Government efforts like this will only prolong the pain and the economic downturn.
Nice post! Individual financial stability is very important. Normally there's a range of stability correlating more or less with age, but right now, everyone's unstable!
Growing up in Asian culture, I've always been fascinated by consumerism, thinking that this was what strengthen the U.S. economy, as opposed to Asia, where saving is more encouraged even if it thwarts the economy.
Now as world economy worsens, it's interesting to see how this Asian old wisdom of frugality becomes a fad in the States. But will this trend help or exacerbate the economy?
I still don't know for sure whether saving is better than spending or the other way around, but seems like minimizing/eliminating our own debts is what's at stake now. So, guess we've got a winner.
This idea of frugality might eventually contribute to a development of culture not revolving around material things. I am excited about what great thing might come of this. http://www.newsy.com/videos/u_s_changed_save_or_spend/
Does anyone know how to change the region on this English DVD. We are wanting to play DVD's from Australia, Region 4.
Thanks
______________________
Editor's note (3/4/09) - This is an anonymous tip we received about this DVD player today. Use at your own risk.
* Press the Open button on the front of the player
* Press the Setup button on your remote control
* Using the Left button on your remote control, change the display to the Preference Page
* Press the Down button on your remote control to highlight the Set TV Standard option
* Using your remote control, press the buttons 4, 9, 5, 4 and 0, in order, one at a time
NB : You may need to perform this step quicker if this doesn't work as expected
* The onscreen display will display the currently selected region
* Using the Up and Down buttons on your remote control, change the region to 1 for region 1, 2 for region 2, and so on, or 0 for multi-region playback
* Press the Setup button on your remote control
* Power Off your player
* Power On your player
My cheapo unit from Amazon changes volume and channels. It doesn't control the TV's volume, but it changes the level of the digital broadcast. If I set my TV on a decent level to begin with, I have no need for the original TV volume remote -- the digital converter remote works fine.
Right. Classical economics taught that the economy would always move toward the optimal equilibrium. Keynes's big contribution to economics was the understanding that there were suboptimal equilibriums as well.
Having said that, the peak debt paper that I shared in my post on peak debt suggests that this is really a balance sheet issue: households are all borrowed-up. The problem isn't that credit isn't available. The problem is that households can't service any more debt--their incomes just won't support higher payments.
If that's true, there are only two things that are going to fix it.
One is for households to reduce their level of debt. That mostly has to happen by households paying off debt, although other things--bankruptcy, debt holidays, inflation, debt forgivness programs, etc. can play a part.
The other is for household incomes to go up. The stimulus program can help here, but it can't help enough to solve the problem. Savings and investment leading to economic growth will help, but only over the long term.
I always enjoy your entries, they make me think about stuff I wouldn't thing otherwise. The only thing I might add is that there is a difference between an economy being optimal or one being in equilibrium. Just because the economy is in equilibrium it does not necessarily mean it's optimal. It requires a conscientious effort to nudge one from one to the other.
Grew up on a northern Maine potato farm. If we broke even, we had a good year and get to farm again. Always, always braced for disaster weather/market wise. Get one more year out of that piece of equipment and make it last with bailing wire, duct tape or modification of another part saved for the purpose. Not wasting anything and making a game of frugality. Not cheap, frugal and living in gentile poverty..well fed, everything paid for around you and emphasis on family traditions, self relianced and appreciation for all we had. Enjoying the outdoors on a tractor not stuck in six lanes of traffic and grid lock. Gratitude is riches my mom preached. She was right. More government and trillion dollar debt with the printing presses in Washington working overtime to supply more currency, more inflation eroding the dollar's spending value is not the answer. Enjoyed your post.
Yeah, I agree Deb, I think this is possible with the computation you have so far laid. And if we only learn how to save at a very young age, we'd be a millionaire in time as we grow old. ;)
Being frugal is the right way to go. We don't need any recession scare or another economic slump just so we'll decide to be thrift and live frugal lives. Come to think of it, being frugal and staying that way will do you more good than bad. Hence, it'll help our economy if we all will be. :)
My cousin makes it often, and I find it tasty! The recipe at All You is similar (leave out the frosting for a more sensible dessert.) I wouldn't have known it was made with soda if she hadn't told me!
It's been awhile, but has anyone tried that supposed Weight Watchers trick of making cake with soda? I tried it once... it had a bit of a cola aftertaste, and came out a little fudgy like a brownie. But not too bad. Supposedly zero calories if you use diet soda.
You use one box of chocolate cake mix and one can of cola. Or a vanilla cake with a lemon-lime soda.
Mix and bake as per directions. Do not add any eggs, oil or other ingredients.
The post by Siqurd makes sense but I believe coins will still be used to make change for small purchases, especially for those at the bottom of the economic ladder unable to obtain a credit or debit card.
I don't claim that the following is factual or not but there is also some indication that paper "amero" banknotes might also be planned as shown at this link:
I just wonder . . . what would happen if we each took personal responsibility for using our $7.70/week to buy something locally produced($15.40/week for a two-adult household)?
After reading the expiration date on the organic milk I was buying for my preschooler, I switched to home delivery from a local dairy that runs its cattle on pasture and uses glass bottles. It's more pricey than the sale milk at the grocery and gas station, but shout-out tasty, and a great use for that stimulus money for people in my neighborhood. I've also discovered that there are two local coffee roasting companies, one of which supports coffee growers in Guatemala, which is the country where our son is born -- I'll need to talk to the resident coffee drinker (my husband) to find out how fast he goes through the stuff, but it might be that an extra buck or two a week would get him a higher quality product that also benefits the economies of two places we care about.
My husband is out of work & sometimes the global picture seems overwhelming. I'm just trying to think about whether there's anything we might be able to do do to help our neighborhoods / towns / communities out of the current economic malaise . . .
People have to understand that not everyone who is now in deep doo doo was irresponsible. In Michigan the unemployment rate is 10%, California has a 9% unemployment rate. Some of these people are just guilty of believing that they would continue to have a job.
I agree that it sucks that the plan couldn't weed out the ones who were fiscally irresponsible but I don't think it's right to let people who got laid off through no fault of their own get tossed out on the streets while waiting for the economy to recover.
I only use the electric blanket to warm the bed for a while before I jump in because I absolutely HATE getting into a cold bed. I turn the blanket off after I'm in as I too can't take the interference in my own electromagnetic fields. Oh, I forgot to mention I sleep with the window wide open at night, irregardless of temperature or inclimate weather. Twenty plus years in Alaska didn't change my habits. My poor wife should be the one telling her secrets about adapting to cold temperatures. I'll see if I can get her involved. You all are fun to follow. Life is good hot or cold, the alternative is just more of the same, hot or cold. Ha!
I think the book could be better if there was an option on the coupon to allow just one person to get a discount. Sometimes I like to go out and do things by myself and can't use the coupon unless there's someone else with me. Amusement parks are for two or more people. Movie tickets are BOGO. Dining coupons are difficult with a BOGO.... too much food for me :) Most places will not let you order the second dinner and take it home. I'd like to see options for single people on the coupons as well as couples and families.
I love having the "extra" coupons to give away. I can be at McDonalds or any other place and have an "extra" coupon for a free or discounted "something" and give it to someone near me that looks like they could use a pick-me-up. It's a great feeling. I also like any of the coupons for places I'd never think of going. It gives me a reason to try a new place ie: museums, art shows, theater, dining etc...
The Comcast office here doesn't have any noticeable security. But then its in a suburb with relatively low crime rates.
The $200 bill could be explained if they have bundled service including cable TV, telephone and internet service. That could easily hit $200 level. I'd assume they offer all that most places.
I don't really see anything that explains why you'd think people are paying their cable bill before buying groceries.
Jim
Before buying a product, I always check to see where it's made. Frankly, I think it's ridiculous we simultaneously owe China billions and billions of dollars in debt, and have a huge trade deficit with China, sending them billions MORE dollars every month. I'm no economist, but this seems like a bad balance. We're borrowing their money, to buy their goods? (And, of course, to ship their money off to destroy / rebuild Iraq, and simultaneously buy Iraqi oil.)
There's a few other reasons I prefer not to buy things made in China: it's often poorer quality, they don't have the same safety testing, a lot of the cost is going toward transport (oil, pollution) etc. Sometimes I still buy things made in China - sometimes I can't find certain products made anywhere else. But if I have the choice, I'll pay more and buy the made in USA item. I'd rather keep the money going around locally, maybe keep a neighbor or family member employed.
Thanks for writing this Philip -- you have articulated a few of the things I have been thinking of (simply, spend or save) and gone beyond with a sustainable solution. That our individual actions can make a collective difference has been reinforced by the current state of the economy; but what to do about it for our personal financial well-being and the economy's well-being in order to bring stability has been the big question. I like the idea that we can promote saving and spending, in the right measures.
I'm old fashioned and believe that a contract is a contract is a contract... and that it takes two willing parties to enter into a contract. If the terms of the contract cannot be met, then both parties should feel the pain so they are wiser next time. Certainly, the poor, the ignorant, and the greedy were preyed upon by some unscrupulous lenders, but why should the American taxpayer subsidize their efforts to possess more house than their income can afford? The sooner we get through this housing pain, the sooner we can begin the recovery. Government efforts like this will only prolong the pain and the economic downturn.
Good advice... until inflation hits and your savings become worthless
Nice post! Individual financial stability is very important. Normally there's a range of stability correlating more or less with age, but right now, everyone's unstable!
Hi Philip,
I stumbled upon your site while trying to find an answer to the question thrown by this video: http://www.newsy.com/videos/u_s_changed_save_or_spend/
Growing up in Asian culture, I've always been fascinated by consumerism, thinking that this was what strengthen the U.S. economy, as opposed to Asia, where saving is more encouraged even if it thwarts the economy.
Now as world economy worsens, it's interesting to see how this Asian old wisdom of frugality becomes a fad in the States. But will this trend help or exacerbate the economy?
I still don't know for sure whether saving is better than spending or the other way around, but seems like minimizing/eliminating our own debts is what's at stake now. So, guess we've got a winner.
This idea of frugality might eventually contribute to a development of culture not revolving around material things. I am excited about what great thing might come of this. http://www.newsy.com/videos/u_s_changed_save_or_spend/
Does anyone know how to change the region on this English DVD. We are wanting to play DVD's from Australia, Region 4.
Thanks
______________________
Editor's note (3/4/09) - This is an anonymous tip we received about this DVD player today. Use at your own risk.
* Press the Open button on the front of the player
* Press the Setup button on your remote control
* Using the Left button on your remote control, change the display to the Preference Page
* Press the Down button on your remote control to highlight the Set TV Standard option
* Using your remote control, press the buttons 4, 9, 5, 4 and 0, in order, one at a time
NB : You may need to perform this step quicker if this doesn't work as expected
* The onscreen display will display the currently selected region
* Using the Up and Down buttons on your remote control, change the region to 1 for region 1, 2 for region 2, and so on, or 0 for multi-region playback
* Press the Setup button on your remote control
* Power Off your player
* Power On your player
#79
My cheapo unit from Amazon changes volume and channels. It doesn't control the TV's volume, but it changes the level of the digital broadcast. If I set my TV on a decent level to begin with, I have no need for the original TV volume remote -- the digital converter remote works fine.
Linsey Knerl
@GTwb:
Right. Classical economics taught that the economy would always move toward the optimal equilibrium. Keynes's big contribution to economics was the understanding that there were suboptimal equilibriums as well.
Having said that, the peak debt paper that I shared in my post on peak debt suggests that this is really a balance sheet issue: households are all borrowed-up. The problem isn't that credit isn't available. The problem is that households can't service any more debt--their incomes just won't support higher payments.
If that's true, there are only two things that are going to fix it.
One is for households to reduce their level of debt. That mostly has to happen by households paying off debt, although other things--bankruptcy, debt holidays, inflation, debt forgivness programs, etc. can play a part.
The other is for household incomes to go up. The stimulus program can help here, but it can't help enough to solve the problem. Savings and investment leading to economic growth will help, but only over the long term.
Phillip,
I always enjoy your entries, they make me think about stuff I wouldn't thing otherwise. The only thing I might add is that there is a difference between an economy being optimal or one being in equilibrium. Just because the economy is in equilibrium it does not necessarily mean it's optimal. It requires a conscientious effort to nudge one from one to the other.
Grew up on a northern Maine potato farm. If we broke even, we had a good year and get to farm again. Always, always braced for disaster weather/market wise. Get one more year out of that piece of equipment and make it last with bailing wire, duct tape or modification of another part saved for the purpose. Not wasting anything and making a game of frugality. Not cheap, frugal and living in gentile poverty..well fed, everything paid for around you and emphasis on family traditions, self relianced and appreciation for all we had. Enjoying the outdoors on a tractor not stuck in six lanes of traffic and grid lock. Gratitude is riches my mom preached. She was right. More government and trillion dollar debt with the printing presses in Washington working overtime to supply more currency, more inflation eroding the dollar's spending value is not the answer. Enjoyed your post.
Yeah, I agree Deb, I think this is possible with the computation you have so far laid. And if we only learn how to save at a very young age, we'd be a millionaire in time as we grow old. ;)
Being frugal is the right way to go. We don't need any recession scare or another economic slump just so we'll decide to be thrift and live frugal lives. Come to think of it, being frugal and staying that way will do you more good than bad. Hence, it'll help our economy if we all will be. :)
My cousin makes it often, and I find it tasty! The recipe at All You is similar (leave out the frosting for a more sensible dessert.) I wouldn't have known it was made with soda if she hadn't told me!
Linsey Knerl
It's been awhile, but has anyone tried that supposed Weight Watchers trick of making cake with soda? I tried it once... it had a bit of a cola aftertaste, and came out a little fudgy like a brownie. But not too bad. Supposedly zero calories if you use diet soda.
You use one box of chocolate cake mix and one can of cola. Or a vanilla cake with a lemon-lime soda.
Mix and bake as per directions. Do not add any eggs, oil or other ingredients.
when i follow link to malta star it is listed as an attack site by mozilla and when i try to ignore notice ithen get message saying it does not exist
The post by Siqurd makes sense but I believe coins will still be used to make change for small purchases, especially for those at the bottom of the economic ladder unable to obtain a credit or debit card.
I don't claim that the following is factual or not but there is also some indication that paper "amero" banknotes might also be planned as shown at this link:
http://good-times.webshots.com/album/570133614EucDQn?vhost=good-times
I liked what Siena had to say.
I just wonder . . . what would happen if we each took personal responsibility for using our $7.70/week to buy something locally produced($15.40/week for a two-adult household)?
After reading the expiration date on the organic milk I was buying for my preschooler, I switched to home delivery from a local dairy that runs its cattle on pasture and uses glass bottles. It's more pricey than the sale milk at the grocery and gas station, but shout-out tasty, and a great use for that stimulus money for people in my neighborhood. I've also discovered that there are two local coffee roasting companies, one of which supports coffee growers in Guatemala, which is the country where our son is born -- I'll need to talk to the resident coffee drinker (my husband) to find out how fast he goes through the stuff, but it might be that an extra buck or two a week would get him a higher quality product that also benefits the economies of two places we care about.
My husband is out of work & sometimes the global picture seems overwhelming. I'm just trying to think about whether there's anything we might be able to do do to help our neighborhoods / towns / communities out of the current economic malaise . . .
I love the Safeway $5/50 coupons - I always spend at least $50 at the grocery store and every bit of savings helps!
People have to understand that not everyone who is now in deep doo doo was irresponsible. In Michigan the unemployment rate is 10%, California has a 9% unemployment rate. Some of these people are just guilty of believing that they would continue to have a job.
I agree that it sucks that the plan couldn't weed out the ones who were fiscally irresponsible but I don't think it's right to let people who got laid off through no fault of their own get tossed out on the streets while waiting for the economy to recover.
I only use the electric blanket to warm the bed for a while before I jump in because I absolutely HATE getting into a cold bed. I turn the blanket off after I'm in as I too can't take the interference in my own electromagnetic fields. Oh, I forgot to mention I sleep with the window wide open at night, irregardless of temperature or inclimate weather. Twenty plus years in Alaska didn't change my habits. My poor wife should be the one telling her secrets about adapting to cold temperatures. I'll see if I can get her involved. You all are fun to follow. Life is good hot or cold, the alternative is just more of the same, hot or cold. Ha!
I think the book could be better if there was an option on the coupon to allow just one person to get a discount. Sometimes I like to go out and do things by myself and can't use the coupon unless there's someone else with me. Amusement parks are for two or more people. Movie tickets are BOGO. Dining coupons are difficult with a BOGO.... too much food for me :) Most places will not let you order the second dinner and take it home. I'd like to see options for single people on the coupons as well as couples and families.
I love having the "extra" coupons to give away. I can be at McDonalds or any other place and have an "extra" coupon for a free or discounted "something" and give it to someone near me that looks like they could use a pick-me-up. It's a great feeling. I also like any of the coupons for places I'd never think of going. It gives me a reason to try a new place ie: museums, art shows, theater, dining etc...