The immediate question: I have no doubt that a turnaround in the American economy will be underway in 2010; however Americans are struggling to find the balance between consumerism and frugality.  What should this balance be? (Please see Essay #1 in “The New American Prosperity.”) We know it makes sense to save more than we Americans have traditionally saved. At the same time, our not spending keeps the lid on renewed economic growth. In the giddy boom days of yesteryear, we bought what we needed and whatever we wanted. In the ultra-conservative days of this recovery, we may have decided to not buy stuff we really don’t need and put off buying the stuff we do need. Perhaps the answer is too simple. If you have an income and some reasonable grip on your family’s financial affairs and need something, stop putting it off. Go buy it! Whoever makes and sells whatever “it” is will appreciate it very much. Do you agree?

A much bigger question: How long do you think the adjustment in our economy and in our individual spending/saving habits will take? Is this a situation that will rectify itself in a couple of years? Or, is this a 5 to 15 year “sea change” adjustment of the whole economic picture for America to make up for the short sightedness and the excesses of the past 5 to 15 years? What do you think? 

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