If everyone lived within their means and saved money...

What would happen to the US economy?

If people ONLY purchased stuff that they could afford, saved a little at the end of each month, and paid their credit card bills the day it is due, what would happen to the US economy?

Would it boost or hurt the economy if we lived within our means?

 

Would hurt the shit out of companies but would be great for the normal people. Especially banks would be pissed since they want you to have a mortgage hanging over your head until the day you die.

 

RIP repo men.

 

Positive - Richy rich people would get mad as hell. Any closer the peasants become too bring wealthy/independent madness rich people lose sleep on their Egyptian cotton sheets. We'd be working towards something instead of being the usual monkey buying shiny stuff lining their yacht payment.

Negative - no more you sound poor pics around here ): ):

 

It would hurt the economy. Savings are a leakage out of the economy. And in order for the economy to even reach a state of equilibrium, investment would have to increase. I'm not sure if more savings would drive investment to increase though since the interest rate would likely have to increase in order for people to save more. Macro really is not my thing.

 

What school do you currently attend or graduated from?

 

A little off topic, but if every kid had his mom and dad living in the same home, more people could save money. Divorce and sleeping around outside of marriage means kids live in households with less money.

 

People would pay cash for things instead of financing everything.

 

It would hurt business that finance big items like purchasing vehicles. But would probably help the auto mechanic small business. Cause people would keep their old cars longer, fix it when something breaks instead of financing a new car. And pay their bills on the spot.

The car mechanic doesn't have to send that person to collections to collect his money.

Probably helps small businesses and hurts big corporations in general. But I'm not sure.

 

It's what I do. I have plenty of money but I still try to be cheap.
I recently worked out with my financial manager that I can leave my kid something North of a mil even if I have an expensive old age.
Makes me feel good.

 

The economy would crash. Americans buy so much shit they don't need. Remember after 9/11 Bush was telling folks to go out and shop and buy stuff because everybody was scared and saving money.

We'd be better for it on the otherside, but it would be chaos for years initially.

 

You sound poor

 

Divorce is selfish imo and shows a lack of decision making. You made a decision to spend the rest of your life with someone thats a HUGE fucking decision. U better be 100% sure thats what you want. Otherwise I dont trust u with any decision less than that

 

Gotten to^

 

How? Im
Rich<DrakeLaugh>

 

Wow! Good on you!
My grandpa preached and farmed. He made less than 20 g's a year when he died 18 years ago. When the ketchup and mustard bottles got low, he put water in there to get the last bit of ketchup out of the bottle. Drove old cars. Fixed everything he could. Basically didn't make much money his whole life. My dad grew up poor.

Anyway, when he died he left his 4 kids with 35 G's.

 

I get the feeling you'll be doing the same, same family first attitude.

 

Broke^

 

You sound poor

 

Cuck^