Are people really cutting back on their expenses?

Depending on who you talk to not everyone is cutting back on expenses. Those that have a stable income and have always been able to stash money away for a rainy day are still buying and spending the same way they always did. Those that are facing unemployment or went from a 2 income household down to 1 are defiantly cutting back. Young, single and employed seem to going on with what the rest of us call frivolous spending and that maybe the cause of the economy getting stronger again.

If it was not for the fact that someone somewhere still spent money like water and thus providing the rest of us an income where would we be? Thankfully people are still buying diamond engagement rings, new cars, expensive vacations and dining out.

I use to think of people that spent money like water as crazy, but now those crazy people are what the rest of us need right now. Unfortunately I normally say save, save, save but if you have money you can spend without hurting your bank account then spend a little. It will help out those that are unemployed. I will say one thing though - BUY SOMETHING THAT WAS MADE CLOSE TO WHERE YOU LIVE. You want to boost your own local economy first rather than some giant manufacturing plant overseas.