I hate to say I told you so, but here are the new consumer confidence numbers from Businessweek. Basically, 29% of people either expect a product they buy to fail, not work, or just overall not be worth the money. The result is that fewer people are expected to buy things. Analysts say this is a bad thing, because our economy is totally dependent on the exchange of cash for goods, but I disagree.
Look at what we buy, and how we buy it. Big box retailers promote a shopping experience, separated from quality. For example, an inexpensive product is displayed next to a very expensive product, giving the impression of equal measure. A reasonable person will not make the connection, buy the junky one and be right back in the store shopping for a replacement before too long. This is good for business, bad for people.
Online shopping is not much better. Most items are purchased sight unseen, allowing for a great deal of abuse by merchants and manufacturers. Factor in the incredible pain in the ass of returning products bought by mail - contacting the vendor, repackaging, shipping, waiting for a replacement, and the possibility that this one is no better, it's no wonder consumer confidence is at its lowest in recorded history.
The system is flawed. Money is a resource, like anything else. You either waste it or use it wisely. You can buy a $3,000.00 television on credit, built on untested technology to watch terrible movies, and destroy it the first time you spray it with windex to clean it, or you can put it away to buy a house, put the kids through college, or retire in relative comfort. Capitalism is fine as economic systems go, when it is honest and true to principle, but we don't see much of that these days. Low consumer confidence means people are wising up to the game and don't want to play anymore. 29% of Americans are that much closer to being minimalists and they didn't even know it.
