The psychology of Consumer spending

I put this in here because consumer spending has as much to do with psychology issues as well as economic and political issues does. You see when a person feels secure psychologically and financially they will spend, but I've even seen people who feel secure financially have been saying That they will not be spending as much this christmas. So has the financial situation in America changed our psychological security about our financial futures? I think it has. What do you say?
It's important also to ask, will you be spending as much not only this christmas, but how about Halloween? How about New Year's Eve? I'd like to know what you all say. I know I won't be spending as much!!!!

[edit on 11-10-2009 by ldyserenity]

I am in the UK and not the USA, but it is similar here.

One factor to consider is inflation, in the UK there have been sharp rises in

Petrol (Gas) from oil prices and increased tax
Food / Drink
Electricity / Natural Gas
Council tax

but the official government figures hide the real inflation.
This year many people have had no pay rise or pay cuts.
Many credit cards companies have increased the interest rates for outstanding balances, some up to 46%.

Due to these factors, many people have less to money to spend on non essentials. I think may people are saving, because if they lose their jobs then the chances of them finding another quickly are very slim.

I have a small business. My customers and myself are spending less but are ordering more often. No one wants to have any money tied up in stock.
I was speaking to a sales rep for a stationary suppliers, he said none of his customers have a stationary cupboard anymore. When they run out, that's when they order.

Halloween and New Years Eve are small in England. But we do have bonfire night (Guy Fawkes). I think Christmas and birthdays are much smaller celebrations in the past year.

In conclusion

Whats the point of a new flat screen TV if you are cold and hungry?

reply to post by ldyserenity


This year will be very tight for us. I'll probably buy a bit of candy for Halloween, but Christmas will likely just be gifts exchanged between Hubz and me.

When times were better, we definitely had our share of consumer spending - we'd go out to dinner once every month or so and my hubby is a Fly Fisherman so he would often buy himself equipment, but times are tight and now we don't go out for dinner and we don't buy anything extra. All money goes to mortgage and bills.

But it has made us realize what we really need and what is just superfluous in our lives. We have way more "date nights" now at home with dinner, candles, and a movie! It's really great, actually.

reply to post by ldyserenity


Reality has hit home .

It took this calamitous chain of events to make people sit up and take notice .

Having your nest-egg wiped has a way of focusing minds.

Yeah we`ve had Depressions before ..... but this is a different beast . Globalisation means that the level of integration we have achieved between our economies leaves nobody untouched.

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Re: The psychology of consumer spending .


A look at why less may be more.

Psychologist Barry Schwartz takes aim at a central tenet of western societies: freedom of choice. In Schwartz's estimation, choice has made us not freer but more paralyzed, not happier but more dissatisfied.

Barry Schwartz: The paradox of choice

Really what I was aiming for is how do you think this affects our spending psychologically? I mean even when/if it straightens out I see people will be less likely in the future to be so consumerist as they were in the past and be more thrifty just because mentally it has caused many to see how overspending has led to such a mess? But, that's JMO.

Originally posted by ldyserenity
Really what I was aiming for is how do you think this affects our spending psychologically? I mean even when/if it straightens out I see people will be less likely in the future to be so consumerist as they were in the past and be more thrifty just because mentally it has caused many to see how overspending has led to such a mess? But, that's JMO.

Should world economies return to anything near their prime, i would imagine those who got stung financially will show prudence.

The next generation .... maybe not .

I suppose it all depends on how we proceed from this point on.
We can no longer cycle through boom and bust . The music has stopped and its our generation that are left with nowhere to sit.

What the future holds for Europe ..

By 2065, almost one-third of the EU's population will be older than 65, according to a forecast published on 26 August by Eurostat, the Union's statistical office.

link
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The inclusion of the video , was more of a reminder of what we can leave behind ~ and why .Should we ever claw our way out of the mire .