Quote:
Originally Posted by R N M
People that kept their jobs have now excess cash for the following reasons:
1) No travel
2) No sporting events
3) No gambling
4) No shows/concerts
5) No summer camp, afterschool program, various activities- piano, swimming for my kids
6) Much less eating / Drinking out
Plus much more!
People using this savings to buy cars, boats, vacation home, renovation projects etc
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The first time I read this I misunderstood because I thought you were saying people were saving money on those things and that was leading to lack of spending...then realized you meant that money is going into things like second homes, boats, projects etc. which is spot on for the wealthier folks but I think you see the same apply to shopping and more mundane goods across the board. People aren't pinching pennies right now even though they should be.
Part of the reason we haven't felt the "pain" yet is because people are still funneling money into the economy. Hell even those on unemployment are taking home MORE money than they were before with the relief. It's if/when that dries up that we may be in a world of hurt. It all depends on if we can keep making slow progress or if we're pulled backwards and are right back to square one.