There are some upsides to the down economy

July 1, 2009 – 1:02 pm – No Comment

Whenever you look at the overall economy and get discouraged, remember that there are a few upsides to the economy being in the gutter.

First, as a while, we’re borrowing less and putting away more. I suppose that we’ve all been a bit burned by not living within our means. As the credit crunch collapsed the world of the credit markets, people began to actually save more money. Yes, there are still plenty of people out there that are having a hard time getting monthly bills paid due to the high credit card payments they have incurred, but overall savings are up for everyone.

Even with gas prices down, we are actually driving less. When gas prices hit record highs last summer, people took notice and curbed their driving habits. Some of it actually stuck and now that gas prices are just over half what they were a year ago, the roads are still a bit emptier and people are carpooling and finding other ways to get from place to place.

Consumers are actually wasting less when it comes to necessities. Everyone is squeezing the last bit of shampoo out of the bottle and wearing shoes that they would have likely thrown away a long time ago. Consumers are shopping at thrift stores more to save money too; so they’re also using up what someone else didn’t. Thrift stores like Goodwill or the Salvation Army are actually running out of items faster than items are donated.

Out of the new home construction, smaller homes are being built. This goes back to wasting less. With smaller homes, we use less electricity and other resources. We’re saving money with smaller homes and leaving a smaller footprint on the earth. The average size for a new home that was being constructed has decreased for the first time in 10 years by 11 percent or nearly 300 square feet. Smaller houses also means that we’re using less resources to actually build the houses; there is less wood, wiring, and piping.

Finally, people are actually eating healthier. Red meat sales are down while the sales of poultry, fruits, and vegetables are up. Consumers are shopping more at local farmers’ markets, where produce is not only fresher, but is also typically cheaper than stores like Wal-Mart. This is also a great way for local businesses to start picking up. When people purchase more at farmers’ markets, they are putting the money back into the local economy.