It's hard not to be completely up-to-date on the economy these days. Seems like all of the articles are saying the same thing though. Consumers are scared to spend so they are saving money, while the government is spending too much money to bail everyone out.
Something I've learned in my economy class is the crowding-out effect. If Government debt is increasing, investments will decrease. What that means is that consumers will be less likely to investment in stocks, property, or anything dealing with spending money. This, in turn, creates a slump in the economy. It's not helping our GDP go up at all.
What I advise is for all of us to go and spend, take some risks, reasonably and stop being so scared by what the media says. I think we, as consumers, need to get out there and help our economy out. The economy will bounce back eventually. It may not be immediate with our new president, President Obama, in office. But the economy has been worse than this in the past. It has always gotten better.
So, girls buy that reasonably priced pair of shoes. Guys, buy that video game that you really want but are too scared to buy.
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The media has been warning about everything under the sun even getting into celebrity domestic affairs. I rarely listen to the media though I hear a lot that they say or write. When I have the money, I spend for whatever I like. I save also.
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