- Personal Finance
How Can You Stimulate the Economy?
It is well known at this point that the United States is in a recession. No one knows how long it may last, but everywhere you turn people are either talking about frugal living or how the economy can be stimulated. I am all about frugal living and am always on the look out to save money. But, according to the news so many people are living a more frugal lifestyle that it is hurting the economy and preventing the US from coming out of this recession.
I don't believe that. I know it is becoming more and more popular to live frugally and save money, but I don't think it has gotten to the point that it is really hurting the economy. Honestly the United States has been on such a path of over consumption for so long, that I think this turn towards frugality is just the economy correcting itself. There are ups and downs in everything and this is just one of them - in my opinion anyway.
That being said, according to the news, the economy needs to be stimulated, so how can we do that? Well, if you are unemployed or deep in debt, then you don't need to be stimulating the economy any more than what you have been doing. There are many people that fully need to concentrate on themselves and not worry about its affect on the economy.
For many people though, they are still living a life that is unaffected by the recession. If you have plenty of savings, a secure job and no worries, now is the time that you could help the economy. I am not saying go out and spend willy nilly or anything. But there are a lot of people looking for work. Think about how you can help them.
Have you been meaning to have your house painted or your basement finished? If you have the money saved for it, now is a great time to tackle a big project like that. People, especially small businesses, really need the work. Not only would you be helping them by employing them, but chances are good you will get a great rate. This is a win-win situation for everyone.
If you don't need to be cutting back, then don't. Think of the trickle down affect that your actions have on other people. When you go the local restaurant for dinner with your family you are helping the owner pay his bills and keep the doors open for the restaurant. This restaurant is employing many people in your community. Your waiter or waitress will gain directly from you eating out that night. You are helping them pay their bills, which could determine whether they keep their house or not.
Now is also a good time to buy a car or a new home, IF you were planning on doing it soon anyway. Make sure you are either fully qualified to make a large purchase or you have the money saved ahead of time. The price of cars is very low right now and there are lots of incentives. Housing prices are falling and you could now afford a house that you couldn't a couple of years ago. Without overspending, you can stimulate the economy with carefully thought out, well timed purchases. Think about it and see if you can help.