12-21-2008, 04:36 PM
It's primarily those who have a lot of debt that need to start saving - well, first they need to pay off much of their debt. Ironically, though, it is right now when those of us who have been saving that need to do some spending of some of those savings. If those who were spending by going into debt now quit spending and those who were saving significant chunks of money save even more and spend less, the economy will tank even significantly worse than it would otherwise. Jobs ultimately depend on demand for goods and services and if everyone significantly reduces demand for goods and services by spending less at the same time, jobs are going to evaporate at an increasing rate. And the more jobs evaporate, the less demand so even more jobs evaporate. We need to stay out of the awful feedback loop. So we conscientious savers need to do our bit for everyone else and buy lots of stuff! I know it's an awful sacrifice to ask but it's only temporary. In a year or so we can probably go back to our contented miserly ways. :-)