Do you feel a sense of obligation to keep the economy moving?

[hotcouponmama]

Ok, I'll preface the question with a little background.

I read an article the other day about the chain reaction of NOT spending money in a down economy and how the effects are more local than you might think.

So, in the past few days, I've bought meals out and tipped well, had my hair done (not like I'd ever consider doing it myself, but I didn't need to race out and do it), and engaged with my husband in a pretty serious debate what it means to buy something online vs. spending a little more and buying it here locally.

We're pretty blessed right now that the economy isn't hitting us to badly (other than retirement accounts which lost a huge chunk of change). We're not debt free, but we have a pretty insulated source of income in that Mark is in the Army.

As the theory goes, if I choose to horde our dollars and do things like pay down debt or put money into a retirement account, it certainly benefits me. But, I live in a larger community of people who aren't all in the same position I am. So, do I have an obligation of sorts to help support the local waitress by eating out, or the hairdresser by using her services?

On some level of course, spending money goes against my grain, but on a bigger level, I do feel a sense that if Mark and I can continue to put money into the economy, we can help keep it propped up. At least, the hairdresser who made a nice tip has money to go out and pass on at the local restaurant and pass the money to the waitress who'll use it to pay her daycare provider who'll use it on groceries.

The economics of it all is fascinating to me, and certainly, we're frugal here on the board, so it seems counterintuitive to spend money right now, but maybe not?

I'd certainly be interested in others' opinions on this, because while it's not trickle down economics, it feels more like pass-through economics, whereby passing the money, it eventually comes back around to you in some form. For us, Mark's salary is paid by the government, ie, taxpayers. So putting it back out there feels right to me. But even if he wasn't in the Army and we worked in the private sector, the same theory holds true.

Ultimately, since no one seems to be bailing out the individuals, it feels like if those who can afford to spend a bit continue to do so, it might stave off hard times for someone else.

[queenofthehivemomof5]

For me I would have to say, no I don't feel obligated to spend money and boost the economy. I spend money because there I goods and services that I need and they cost money to buy or obtain them. I don't really feel obligated to support a waitress or hairdresser or even buy locally vs. online. I need my hair done, I get it done. I have done it both at home and in a salon and frankly the last time I got it done in a salon it was money down the toilet. If we eat out it is because we want to and of course I tip well. But I am still going to stick to a budget, save money for my house fund, give to others and take care of my families needs first. I am sorry but if a store online can give me a better deal than Walmart or Kmart I am going to spend my money there. It is survival of the fittest in that regard. Americans as a group are blessed beyond measure compared to some other countries and if durring these "hard economic times" that means that we have to learn to be frugal and smart with our money then so be it. When hard times for Americans means that our retirement accounts are not so good or the price of a box of cereral is a dollar higher I say that is a blessing when there are others that never know what retirement is and hard times means that they cannot afford to put a roof over their heads and food in their bellys. I was reading recently about a program that takes in donated shoes to give to children in 3rd world countries and the article said that something like 30 million people in this world have never owned a pair of shoes and that most of those are children. And it made me feel blessed that everyday I gripe at my kids to put their shoes and boots in the garage on the shelves and not pile them up by the front door. My children not only have a pair of shoes but they have 5-6+ pairs each. It makes you think for sure.

[Lori63]

I am not boosting the economy because I have no money! When I do I will buy the things I need because I need them, not necessarily to support the economy.

[mama22qts]

I suppose the obligation to spend is there to an extent in my mind, but it's based on my relationships more than the desire to help out the economy.

My hairdresser and I have been together for so many years that it's more a friendship than anything else and I feel guilty for not getting my hair done the way I have in the past. I know that's money directly out of his pocket.

Restaurants, no, I don't feel obligated, because I know how unbelievably expensive a dinner out can be and I just don't have that kind of money to throw around. Especially when I know I can make a really fine meal at home for 10% of that.

I guess I understand your point, since ours is 'real money', not credit. Some REAL spending would grease the wheels and get us headed in the right direction. No one has that kind of spending power right now though and even if they did, every bone in their body is screaming against parting with it!

[jetty56]

No, I dont feel obligated!

Yes, I am spending but for things we need to have, which I really mean NEED. I am saving money, using coupons to help out my family first. Family is always first to me, single DD with 2 boys and DS beginning anew relationship.

I do donate to the needy also, food, clothing, personal products, what ever I can or help a neighbor.

For the most part I dont think people really think about keeping the economy moving, they are thinking of ways to save, keep a roof over theirs heads, put food on the table etc.

[sbp]

In the few weeks, I have been worried more about our local economy because our town just got hit with a major blow. A long time business, and a HUGE revenue for the town with its taxes, just closed its doors, because of the economy. The business was the racetrack, where I can remember going as a little girl with my grandmother to watch the horses. They haven't had horses there in a long time and then only raced greyhounds and then went more into telecast races, but business has been declining for them rapidly since no one has the money to gamble with now. The track had been paying $2200 every week in taxes to the town so there's now a $110k hole in our town's revenue, not to mention all the employees that worked there that no longer have jobs.

That scares me to death because you know they're going to try to make up that difference somewhere and the obvious choice is going up with everyone's tax rates for property taxes, and our taxes are high as it is. DH says that they can't raise everyone's that much because then they'll be creating more problems with people losing their houses and land and everything. But I guess we'll see at the town meeting in March, just how they plan on dealing with this. We're supposed to be getting a Super Walmart being built which will open up the space where Walmart is right now and hopefully we can get another big chain store in there, even Home Depot or something, that will help with the tax revenue and provide more jobs, etc.

But as far as keeping my money in town, that's very difficult since we don't have a lot of options for local businesses. We do have 3 gas stations, but one of them is owned by the company that DH works for, so we support them and drive a few miles further than the closest one to put money in their tills (plus they participate in the Price Chopper fuel program). There's no grocery store in town, no entertainment (no movies, bowling alleys) so most people drive to the next town for both their jobs and to do/get anything, so it's definitely challenging.

Sure we WANT to help the local economy more, but with limited places to do so plus us trying to not spend all of our money for extra things, it's no easy task.

[jkelstaten]

I understand what you are saying and if I had the money to do it, I would try to "spread the love". But since I don't really have that kind of money, we try to only spend on needs.

For the past two months I have seen lots of grocery deals pass me by because we were trying to eat out of the stockpile. The only things I have purchased are perishables & a few snack foods for the kids. I have been able to reprogram that buying in a sense. I've been trying to buy more organic/natural foods, so that does eventually trickle down.

My girls and I don't cut our hair and Dh always cuts his own at home, so we never had that expense to start with. And we do go out to eat on Sundays (but Dh's dad always pays & won't allow us to try to pay....he writes our paycheck, so he knows how small it is...lol!). And we try to buy gas at the cheapest location, which means we fill up when we cross over into Virginia for our Bible study on Tuesdays. It's about $0.40 cheaper than our local station.

I have spent much more in the last couple months than usual, but it has been household needs for traveling this coming year and it hasn't really been all "my" money. We have a work account that purchases all those types of items.

[chriscree]

Obligated no, but when I need something I do look to see if I can get it from a local buisness or service first before going to The big box stores.

We are trying to eat out at resturaunts owed by people who live in our community as apposed to the big chains.

My husband just bought a Title company in our area and we are learning that word of mouth goes a long way in helping keep the smaller locally owed companies afloat.

I however used my stimulas check to pay off bills not stimulate the economy further.

[Dengineer]

No we don't feel obligated to prop up the economy. Maybe we're just selfish but we are more concerned with being able to take care of ourselves right now than worrying about "everyone else." I'd love to be able to go out and spend a bunch of money to make everyone else happy but my DH's business is extremely slow right now and we need to keep a big savings cushion because we don't know what next month will bring.

[daisydog215]

I feel more of an obligation to lower my debt, but I do see the potential impact if I were to stop all spending. I continue to get my hair cut every 8 weeks or so and pay a lot more than if I went to the $10 strip mall place (but I did switch my kids to there). I continue to tip well for good service. We haven't eaten out a lot since DD and DS were born, so no real cut back there, but we have cut back on takeout - maybe once every 6 weeks. I am focused on paying off CC debt from DH failed dream of owning a business. But paying it down has an impact too. The more I pay down, the less the banks and CC make from me. In turn, the less they have to pay their employees, etc. Granted, as an individual I don't have a big impact on their bottom line, but cumulatively we do. DH's car will be paid off next month and we will wait to get a new/newer one. Do I feel it is my obligation to run out and get another car? That I am witholding money from the salesman down the street? No way.