hi cincymma79,
though its good to hear a virtuous tale of thrift - it doesn't really speak to my question.
let's say that that people stopped spending. they don't buy a new iphone. they don't buy a new car. they don't stretch for a new house or that new addition. maybe they stop eating out. maybe they stop shopping retail at brick and mortar stores entirely...ebay and amazon all the way!
they save, Japanese style, and just sit on their money.
what happens to the US economy? what happens to job creation and wages when people stop spending? what happens to government revenues that pay for all the good stuff that senior citizens and the military demand?
- IGIT
PS - that prosperous post WW2 period that everyone gets wistful about also was a world where Europe and Japan were basically leveled to the ground, lol. not alot of competition when the rest of the world is in cinders. those conditions are difficult to replicate.