American Thrift - A Look at the American Economy in the 1950's

[westtexman]

Budgeting

I enjoyed watching the lady in the first 2 minutes of the video doing her budgeting using the "envelope system". I have heard this from Dave Ramsey before, but I didn't realize that this was something done even back in the old days.

I've been attending a financial planning class the past 3 weeks, and they suggested this as an excellent tool for budgeting your money. I tend to agree, though I haven't actually implemented this system yet. It just seems that it's so much easier to stay within budget when you are actually dealing in cash, as opposed to swiping a card (debit or credit) when you are at the shops.

It's interesting to see how things were done back in the old days!

 

[jeffg]

Bryan, I can vouch for the 'cash is harder to spend' theory. My other half is probably the only person left in the world who refuses to use plastic. He won't even write checks, if he can avoid it.

This system forces one to abide by a simple rule, which by now is all but unheard of in America: if you can't afford to pay for something immediately, then don't buy it.

 

[classiccaprice]

She has my Westinghouse Refrigerator! I wonder if she'd sell it for parts (lol). I'm surprised its not a Frigidaire.

 

[launderess]

"If you can't afford to pay for something immediately, then don't buy it."

Sadly while this value is a very good rule to live by, in the United States at least, we've long passed where it tis possible for most.

Indeed one of the main problems in today's US financial markets is that both small and large businesses and consumers (even those with excellent credit), cannot access credit markets.

The United States long held the Purtian ethic that debt was a bad thing, and not to pay one's debts ranked right up there with murder in terms of offences, the post WWII economy changed this, and it has been going down hill ever since, that is until recent events.

Americans have the lowest (almost nil), savings rate of any Western nation, and it is even worse when compared to many Asian countries.

So much of the American economy and thus to an extent the world economy depends on US residents spending,and spending more than they earn, which can only happen via credit. If Americans finally started cutting back their spending for the long haul, it would cause the problems we see today, only on a larger scale.

Consider Walmart for instance, if people stopped buying much of that made in China stuff, which usually ends up in a landfill before the credit charge is paid off, it would send Walmart's earning plunging into the earth. That would not only lead to layoffs at Walmart, but as that company cut back, their suppliers would get hit as well, and they would respond in same.

China and other Asian and Middle East countries "own" the United States at the moment. Without them buying large amounts of US issued debt, things would be MUCH worse than they are today. While one is not happy about that little fact, things are what they are. And before anyone starts about this political party or that is the cause of this sorry state of affairs, both can claim healthy portions of blame.

L.

 

[launderess]

Hoarding Cash

Is actually the worst thing one can do in some instances.

As inflation rises, cash looses value as the cost of items bought with said cash rises, but the value of funds hidden away does not. This is why persons look for short term investments that bring any sort of return above inflation.

This little fact is also killing seniors and others on fixed income, living on savings and pensions. Every time the US government cuts interest rates, it drives down rates on "safe" investments like savings accounts, CD's and other places persons stash cash they do not want to put into risky investments. Persons in this situation today are getting hit on both sides, their savings accounts are bringing in returns at or lower than inflation, cost of living is going up, and their investments may have taken a hit; in short we are going to see many seniors and or those near to retirement working longer than they thought, and or trying other ways to make ends meet.

L.

 

[toggleswitch2]

oh relax it's a halloween costume.

and it won't be pretty, I can assure you.

 

[westtexman]

Toggle, Dude . .

That's just NASTY! LOL.

 

[dalangdon]

We have "annual pictures" in our office of the people who did our work in years past, and up until the late 80's the men wore jackets and ties, and the women wore skirts or dresses (granted, the women were mostly secretaries back then). Considering that I spend a lot of time on construction sites or in creepy meter rooms and dank electrical vaults, I don't know how they did it. Maybe they just dressed up for the annual photo, or maybe it was all polyester, so the humidity and moisture just beaded up and rolled off them.

I was talking to my 84 year old mother the other night, and I mentioned an opening of an episode of "Madmen" where the various women are getting dressed in the morning, and how I was surprised by all the layers of underwear they wore. Mom laughed and said that it was a common joke among women her age about how they didn't have that many out-of-wedlock pregnancies because it was nearly impossible to have impromptu sex - it took too long to get undressed, and nobody had enough money to "get a room", let alone a car.

Personally, I don't miss the daily grind of the suit, tie, pressed shirt, silk socks, polished shoes, etc, etc, etc that were my life when I worked for Westin and Four Seasons. I appreciate it in other people, and am still enough of a snob to judge a guy by his suit, but I'm happy in my denim and Carharts. At least I know if I fall in a trench, I don't have to go to a dry cleaner

 

[toggleswitch2]

It was nice to see all the guys in suits in Manhattan in the 80's and 90's.

Let me tell you, a blue suit, white shirt, red tie and black shoes is the easiest thing to do in the morning.

In my day the college job-placement office WARNED you not wear black at/to work. Now all the guys wear black pants (trousers) and a deep-colored, sleeved, collared shirt.

"SWIMWEAR"-VERY NICE!
"EVENINGWEAR"- VERY NICE

 

[launderess]

Undergarments As Birth Control

Right up until the 1970's or so, the one female undergarment that all "decent" women and girls wore was a girdle. Usually a Playtex "rubber" girdle which once on was on for the duration.

Like corsets, girdles, with or without suspenders and stockings are hard to get on and impossible to get out of easily, so once they were on, one tended to stay encased. Many college girls tell stories of house mothers (or in the case of young girls living at home, their own mothers), feeling the ridge of a hip line before a girl went out and upon her return. If the girdle was on upon departure and arrival, it was a good sign no funny business happened on a date.

"Good girls don't bounce"! *LOL*

L.

 

[westyslantfront]

It is almost a year and a half since I lost 70 lbs. As I am
5' 6", I went from 237 lbs to 167 lbs, from a 46 waist to a
36 waist. It took a year and a half of hard work to lose all that weight. After I stablized at my new weight, I had to buy new clothes. Even my shoe and boot size is 1/2 to a full size smaller. I have not worn dress clothes in a long time so as part of my new wardrobe, I decided to buy some dress clothes. About the only occasion to wear dress clothes is for church on Sunday. It makes me feel good to dress up once a week.
Episcopal churches are generally informal and plenty of people come to church in shorts and sandals.
I have friends here who are black Baptists and on visiting their parish, everyone, without exception is dressed up and many of the women still wear hats.

 

[alanlendaro]

Gee Toggles, thanks!

I will be having nightmares for a week!

We were just on Long Island (Syosset and Centereach) this weekend... and they are right. It IS a long island!

 

[westyslantfront]

It is almost a year and a half since I lost 70 lbs. As I am
5' 6", I went from 237 lbs to 167 lbs, from a 46 waist to a
36 waist. It took a year and a half of hard work to lose all that weight. After I stablized at my new weight, I had to buy new clothes. Even my shoe and boot size is 1/2 to a full size smaller. I have not worn dress clothes in a long time so as part of my new wardrobe, I decided to buy some dress clothes. About the only occasion to wear dress clothes is for church on Sunday. It makes me feel good to dress up once a week.
Episcopal churches are generally informal and plenty of people come to church in shorts and sandals.
I have friends here who are black Baptists and on visiting their parish, everyone, without exception is dressed up and many of the women still wear hats.

 

[toggleswitch2]

Ross you look MAHVELOUS!

Oh darlings, a visit to NYC and/or Long Island is not complete without a vist to Toggle!

Come on by and sit for a spell! All are welcome!

 

[sudsmaster]

Up till sixth grade I was in Connecticut. Wearing jeans to school was forbidden in those years. When we moved to SF in '63, I think the dress code was a lot more relaxed,but it still took me years to get used to the idea of wearing jeans to school. In fact I think I wore cords until the 80's.

Most of the time, until I got out of college and got a real job, I never had any money except for essentials and then sometimes not even for that. So I didn't need to budget - I just rarely bought anything non-essential. 25 years of steady jobs for increasingly better pay, buying a house, and then a layoff in 2002 finally led me to realize that my spending had gotten a lot looser and it was time to sit down and figure out just how much I needed for essentials (mortgage, insurance, utilities, phone, food, gas, etc) and how much I'd have left over for the fun stuff (computers/cars/washers/tools/entertainment/clothes). Most of the time when working I just keep an eye on the checking account balance and if it falls below a certain level I know it's time to cut back on the fun.