Feb 23 2009
For Frugal Lessons, Look To The East
NYTimes.com – When Consumers Cut Back: A Lesson From Japan
People in the U.S. tend to overlook the fact that the country of Japan went through what we are going through right now in our economy. Their economic downturn lasted well over a decade. They have managed to pull out from under it, but the effects of that extended downturn are still be being felt there today.
Today, years after the recovery, even well-off Japanese households use old bath water to do laundry, a popular way to save on utility bills. Sales of whiskey, the favorite drink among moneyed Tokyoites in the booming ’80s, have fallen to a fifth of their peak. And the nation is losing interest in cars; sales have fallen by half since 1990.
We are already seeing greater frugality in this country. Makes me wonder how our country will handle things since it’s becoming very obvious that any kind of recovery is many years away. Knowing how Americans tend to be, my prediction will be that once things have reversed that the American consumer will come back with a vengeance. It would probably be better if they used the time to learn how to save with a vengeance instead.
