So there’s this article on CNN about how there’s a poll that asked people if they think we’ll be in a better economical state in ‘09.
Of the more than 1,000 American adults surveyed in the poll, conducted March 14-16, 83% said they are “confident” that they will be able to maintain their standards of living next year, and 85% are “confident” they will keep their jobs over the next six months.
Americans also showed faith that they would be able to pay off their future debts, with 90% of respondents demonstrating confidence they would be able to meet their monthly mortgage payments for the duration of the mortgage.
Nearly as many Americans – 83% – said they could pay off college loans, car payments, and credit cards in the future. The average amount of credit card debt of those polled was $4,000.
“Consumers, in general, are optimists,” said Bullard, who believes that increased consumer spending after the tax rebate checks are delivered in the late spring will help boost the economy in the third and fourth quarters of 2008.
I do hope this is true for the sake of the bicycle retailer. I know that many shops are having a harder time moving inventory. This recession that is looming doesn’t help them either. If I could be as confident as some of the people polled — that I will still have my job in 6 months — then I’d consider buying another bike or save up for a family vacation. But at the current times, I’m just making sure that I have cashola saved in the bank in case the future isn’t so bright.
Bike commuters are typically more frugal with their money than the rest of the folks on this great planet, so I’m curious to know if you would spend the money on bike stuff or anything in particular that would tickle your fancy if the economy was going to get better. Or would you sock it away regardless of economic conditions?
Popularity: 4% [?]
I think we’ll see a brief upturn in the economy once those relief checks get distributed, then back to the grind once folks have blown through that money.
I’d save the money if I could, but it is termite season, so we have to get our house “tented”. Ugh.
Since this money HAD to come from somewhere else, though, I wonder when or where in the future are we going to feel the pain of spending it? A quicker demise to the Social Security system? Less money for schools? Less public programs (National Parks, Federally-sponsored art and music programs)?
I have already begun to look at all my options for a road bike between $350 – $500. Since I ride just about 5 times a week, 18 miles r/t, it will take me about 3 months to replace the cost.
I am sure the economy will come back but with much caution. I think many will become conservative with their spending. I think that is a good thing. I will have more savings and retirement….(Hopefully!!!)
Keep Riding!
The people who think the economy will become better are engaging in wishful thinking. The dollar shows no signs of stopping its slide, energy costs are hitting record levels, the housing market has still not hit bottom, and credit card debt is at an all time high. Alan Greenspan has said that the economic indicators now are worse than any time since the end of WWII.
People who have money saved are basically having it stolen by the devaluation of the dollar. They are paying property taxes on homes that are not sellable for the appraised value.
Jack—don’t worry about where the money “came from”. The Fed just printed it out of thin air, just like the money that’s going to finance the wars.
We haven’t even begun to see how bad things will be.
On a bike related note—if I totally gave up my car for two years, I might recover what I’ve spent on my primary commuter.
Of course, if gasoline hits $10/gallon that time frame will be shortened considerably.
Recent wheeling and dealing resulted in the sale of one of our two cars, the purchase of a tandem bike (early Burley Duet) for about what I got for the beater car, and sale of a road race bike in parts on ebay to finance a 8sp internal gear commuter. If polled, I’d be in the 10% of respondents who said things will get worse rather than better. I guess I could have put that money away or invested in guns if I went a different way, but no, I spent it on bikes and bike parts. …except without racking up any credit debt like I might have been tempted to do in the past.
I’d also be part of those who think the economy will get worse before it gets better. I started bike commuting for both a workout and to save some money. So, for me, the joy of it has not been a casualty of the economy.
And yeah, cash and Ebay. That’s where it’s at. I’m selling right now, and buying when I need to.
GIBSON RULEZ