Friday, June 29, 2012

Inconspicuous Consumption vs Great Depression 2.0

They used to rave on and on about unchecked consumerism. Vance Packard with The Wastemakers.  My mother used to grumble about how commercial Christmas had become. Keeping up with the Joneses.  Buying a new Detroit car every three years.  Well, that unchecked consumerism used to provide 70% of the American  Gross National Product.
    Fast forward to the 2010's.  That new Detroit car will last to 150,000 miles and is still looking pretty nice and new after 6 years on the road.  My father used to trade every 3 years just before the rust came thru the rocker panels.  I can remember all of those family cars after all these years.  Me, I still bought new, but kept them for 6 years.  Modern galvanized rocker panels don't rust out.  Yearly auto sales peaked at 17 million back in '05 and have dropped off to 10 million today.   Not even teenagers buy new clothes anymore.  Take a look at your high school students.  Urban grunge is the style today.  The baggy layered look helps conceal the muffin tops.  Two of my three children don't even own cars. 
    In short, Americans are consuming less, durable goods are more durable,  the hot new electronic toys are fairly cheap and as consumer demand drops off,  so does employment. 

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