To spend or not to spend

Analysts say that consumer spending accounts for more than two-thirds of U.S. economic activity. Consumers must begin to spend money for the economy to improve, they say. But consumers have become frugal, afraid to spend. Or else they just don't have it.

Money's tight, costs are higher in the grocery stores. Auto, home and health costs are up too. From all indications, there won't be a cost of living raise in 2010. A COLA would help money strapped consumers.

From talking with friends, many they say they have cut back on expenditures, tightening their money belts. They have cut out the extras. They are budgeting. They're making do.

They aren't buying as many new clothes or automobiles. They don't eat out in restaurants as often and they forego long distance trips because of high gasoline prices.

No, it isn't $4 a gallon as it was last year, but it is still high.

People are sticking closer to home That trip to Disneyworld might be postponed again this year.

Consumers are conservative, growing their own vegetables.

On one hand, we are told that the stock market will not recover unless consumers spend money and show confidence in the economy. Yet, the consumer is forced to conserve, economize in this recession.

Those I have talked with, resent that Congress has all those entitlements, health and otherwise, which the average consumer does not have. The health care reform bill won't affect their benefits. How can they empathize with the commoner who has no health insurance and lives hand to mouth. Concerned citizens are speaking out loud and clear in town hall meetings, letting their needs and wants be known to politicians.

Yes, we definitely need health care reform. I know many uninsured who pray they won't have a catastrophic illness. They are grateful for the $4 prescriptions offered by Wal-mart, Fred's, and other discount pharmacies. That, of course, does not cover all prescription drugs.

I know of one Clay County resident who needs expensive eye drops that would cost over $200 for a 30-day supply. He hasn't filled the prescription because he doesn't have the money to pay for the drops. He qualifies for free prescription drugs through Veteran's Administration, but they do not dispense those drops, he was told.

Singer Ray Stevens has a new song called Taxes.

One verse says:

"Now, some of them folks that we've been sending off to Congress

Think that all they've got to do is spend and spend

But, you know, you can't run a family, much less a country,

With more money goin' out than comin' in."

Many folks I know can't afford to go out and spend and spend. Instead they count pennies.

They struggle to keep food on the table. They search for bargains and they plan menus and eat leftovers. They conserve by cutting corners on car and home insurance, by raising deductibles. They've dropped the land line phones in favor of cellular phones only. They observe the speed limit because they know that gas mileage decreases over 60 miles per hour. Yes, they keep their tires inflated. And they have cut out some television programming to reduce cost. And a few have stopped using their credit cards.

Women dye their own hair instead of going to hair salons.

Men groom their dogs rather than take them to regular dog groomers.

Men and women carpool to save on gasoline.

They are learning that impulse buying can wreck the budget. (Analysts have said that about two-thirds of purchases are unplanned.) I find that to be a fact. Often, I'll go to the grocery store for milk and bread but I'll come home with a dozen items, not two.

I used to stay home from shopping centers because my philosophy was that "if I don't go, I won't spend."

Yes, it's a no win situation. We must spend, but we can't afford to spend. We can't win for losing.

It's Catch 22.

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