LABJ Forum: Spending Habits in a Challenged Economy
Concerns about job security, terrorism and the sputtering economy have all taken a toll on shoppers’ enthusiasm to hit the mall, at least according to the latest consumer confidence figures, which sank last month to their lowest level in nine years. Economists fear the jittery public mood may lead to disappointing holiday sales. So the Business Journal asks: Are you cutting back on spending?
Elizabeth Goldman
Executive Vice President
PCS Property Management
Yes, but I’m saving for my daughter’s bat mitzvah next year. So, I’m cutting back out of practicality, rather than for a lack of confidence in the future.
Scott M. Holmes
Acquisitions Manager
American Realty Advisors
No, we’re not planning on cutting spending due to the overall economic or political climate nationally. We have a growing active family, and a generally positive outlook about how things will play out with the economy in the next few years.
Ralph E. Plumb
President/CEO
Union Rescue Mission
Yes. I am concerned about the economy. I’m taking a hard look at my charitable giving. I’m taking a hard look at major purchases. I’m not pessimistic, but I am cautious.
Sheila Bergman
Executive Director
P.S. Arts /Crossroads Community Foundation
I feel less comfortable with my real estate investments. In fact, I’m considering selling a much beloved home in the Bay area, in order to have access to additional funds if the economy collapses.
Lori Tierney
President
BKM Total Office
I haven’t reduced my normal level of spending because it wasn’t out of balance to begin with, and besides, consumer spending has been almost the sole reason the recession has been mild thus far.
Kirk Johnson
Vice President, Real Estate Operations
Watson Land Co.
My spending generally consists of lunch. Other than that you’d have to ask my wife. She makes all the purchasing decisions in our household and I wouldn’t dare overstep my authority. However, I have not seen any noticeable decline in the number of packages she brings home or the credit card bills.
Rich Goldman
Founder
RipTide Music Inc.
I can’t say that my wife and I are living significantly different. We are concerned about the future and are considering other avenues than the market to grow our savings. I believe the average consumer is concerned about impending war with Iraq and the current state of the markets. There are certainly reasons for tightening your belt in uncertain times like this. No one seems to really know what war will mean to the U.S. and global economy and many people have had significant dilution of their portfolios.
Suzanne A. Matheson
Partner/Vice President
Imanagement group at Lyddy Martin Co.
In some ways I am at least on the things that are frivolous or seemingly unnecessary. However, on other things I’m not at all, maybe even spending more in some areas such as home furnishings and dinners with friends the things that make life worthwhile. Where I might have put things off for a rainy day before 9/11, I spend more time appreciating things in life.
