July reports show spending more, making less August 31, 2008
Posted by BDO in Misc.Tags: beat, cnn, commerce, Debt, department, fall, income, less, money, spend
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In this article from CNN Money, the Commerce Department reported consumer income fell by 0.7% while consumer spending went up 0.2% in July 2008.
No wonder the Consumer Debt Clock is exceeding $14 trillion in debt. America made less money in the month of July, but overspent their incomes AGAIN. Logically we would expect that when people make less, they spend less. Unfortunately, this is not the case. Our unbridled consumerism encourages us to spend more money anyway. When will we learn that if we don’t have the money to buy something, we should not buy it.
To pay for this extra spending means Americans have to take out more loans. We need to learn that when we take out loans we effectively give our wealth to someone else and bind ourselves to their terms?
Lesson to learn: We need new habits and a fresh look at our finances.
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