Where Consumers Cut Back

Some of my colleagues were interested to know if there is research regarding where consumers cut back first, second, etc., when times
are hard. This is different than what one OUGHT to cut back in hard
times, for which I find oodles of examples; I was looking for what people
ACTUALLY do.

Where Would You Cut Your Household Budget First? (2007) is interesting but flawed, in that it reflects what people saw they would do if there were hard times. But at the time, things seemed rosy.

More useful were Psychology of Bad Times Fueling Consumer Cutbacks (2008) and Consumer Cutbacks: Temporary or Permanent? (2009), which reported on actual hard-times responses.

Also very helpful: Americans Cutting Back on Everyday Expenses to Save Money (Harris poll, 2011).

Addressing the issue from a different angle: 12 Things We Buy in a Bad Economy (TIME - 2011)

But THE treasure trove, if one takes the time to study it, is the Consumer Expenditure Survey from the US Department of Labor, especially the most recent multiyear table (2006-2010 PDF), as well as the ones for previous years, going back to 1981.

Thanks to Alisa Coddington, John Skutnik, Terese Mulkern Terry, and Chantal Walvoord for their wisdom.

Consumer Protection Board "Ask The Expert"

Consumers from across the State are invited to take advantage of the New York State Consumer Protection Board’s (CPB) upcoming Home Improvement Ask the Expert Call-In Day which will take place on September 30, 2009 from 9AM until 2 PM. This free public service program is designed to empower New Yorkers with information and direction as they contemplate small or large home repair and/or improvement projects. New Yorkers with home improvement questions, concerns and problems may call our “Ask the Expert,” toll-free number, at 1-888-351-4648.
As the fall and winter seasons approach, home improvements and repairs are once again on the minds of New Yorkers. Under Governor Paterson, the CPB has created home improvement resources and worked toward stronger consumer protections to prevent scam victimization.
Last year, the CPB created its online “Ask the Expert” program to make it easier for people to obtain answers to home improvement questions. Given its success, we are expanding the project to enable people who may be “Internet-shy” or who have questions which are too difficult or time-consuming to explain in an e-mail to speak to a “live” professional.
Thanks to the generosity of WMHT, the Capital Region’s public television station which is hosting the call bank, New Yorkers will be able to direct their inquiry to home improvement professionals whose areas of expertise include, but are not limited to: kitchen and bath remodeling, plumbing, heating, A/C, sheet metal installation and servicing, construction management, site development, window/door installation, home building, energy-efficiency, home improvement funding for low-income consumers, and improvements on historical buildings.
To bring this event to the people of the State of New York, the CPB is partnering with public and private entities including WMHT, the New York State Builders Association, the New York State Energy Research and Development Authority, the Division of Housing and Community Renewal, and the Preservation League of New York State.
We are looking forward to helping many New Yorkers who are seeking to preserve the equity in their homes and protect their wallets. Therefore, I am asking your assistance in sharing this information with your colleagues, family, friends and acquaintances. Those who need information before then, may check the Ask the Expert page of the CPB’s website at www.nysconsumer.gov, or may e-mail their question to us at AskTheExpert@consumer.state.ny.us.
Thank you for your interest and support. Together, we can make our phones ring off the hook on September 30th and serve many consumers around the State.
Sincerely, Mindy A. Bockstein, Chairperson and Executive Director, CPB

Another Look at Who Is to Blame

In a recent online poll, Time magazine asked its readers who was most to blame for the current economic crisis. Readers rated the guilt of 25 different people on a scale of 1 (innocent) to 10 (guilty). On that scale, the American Consumer rated an 8--even guiltier, according to the public, than George W. Bush or Alan Greenspan.

But is the American Consumer guilty as charged? Not necessarily.