Tuesday, February 10, 2009

Tough times, new behaviors

Dr. Brooks was interviewed on WXOW about changing behaviors during this downturn.

Tough times, new behaviors

Posted: Feb 9, 2009 07:35 PM

It's no secret that we're facing tough times right now, and it seems that consumers are becoming more realistic about the future of our economy.

Consumer Greg Ives says, "I would say we're trying to save more, we're trying to not overspend. We're watching more and more where our money goes."

While President Obama's economic stimulus bill moves forward, even the President knows it will take years not months to revive consumer confidence, and when we'll see relief is anyone's guess.

UW-L Economist T.J. Brooks says, "That's the million dollar question. I think this will be the longest, deepest recession. We're already 14 months into it. Usually the average for a post WWII recession is 18 months which would suggest we're going to be done in about six months and nobody really thinks that's the case."

For some, like Rachel Kleinertz the recession isn't an immediate concern.

Rachel says, "I'm still a senior in high school so it didn't really affect me much. I'm still making the same amount of money, not really doing anything different."

But, Rachel's future does concern her...especially the job outlook when she graduates.

Rachel says, "I just want to get through college."

The Ives have two college tuition's to think about it, and they're preparing for the future by doing what they can in the present.

Bonnie Ives says, "We are really watching what we spend. More coupons and watching for sales and things like that. Today we bought a Pack 'N Play for the baby, but we didn't buy the most expensive one, things like that."

While consumers watch what they spend, they're also saving what they have.

Brooks says, "It's a combination of finding their wealth has contracted from where it was, uncertainty about what the economy holds in terms of what job prospects has certainly increased dramatically."

Brooks predicts a potential economic turn around late this year, or early in 2010.

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