Temporarily Permanent

A survey conducted by a very large bank found that:

“…consumers across all socioeconomic levels and ethnic groups have made permanent spending and savings adjustments to adapt to the current economic situation. According to the data, 63% said the way they spend and save has been forever changed as a result of the economic downturn. Only 29% said spending and saving would go back to the way it was before the recession.”

Hogwash.

The study is basically claiming that the mindset of that 63% goes like this:

“Yeah, things are tight right now, so I’m spending less than I used to. But when the economy gets better, and I’m making more money, I’m not going to buy that high-def TV I want, I’ll continue to drive my 10 year old car instead of buying a new one, I’ve come to realize that going out for dinner is highly overrated, and my wife has discovered that she’s really quite happy with the clothes and shoes she already owns.”

This doesn’t happen on this planet.

People may say that their changes in spending are permanent — but I’m betting that those changes are only temporarily permanent.

This article was originally published on . All content © 2022 by The Financial Brand and may not be reproduced by any means without permission.