Last week there was a news story stating that trucks outsold cars by the highest margin in five years in October. This is considered a sign that people are starting to spend again. If that is correct then I think it is an indication that people did not learn much from the recession.
Some people do actually need trucks for work or other reasons but my guess is that the vast majority of the people who own trucks do not actually need them. The fact that so many people are splurging on an unnecessary item might indicate that many people are going back to their free spending ways. It seems people have forgotten the high gas prices of just a few years ago. Gas prices will go up again but it seems that many people are in denial of that fact. Buying a new truck that you don’t actually need is not a financially or ecologically smart decision in my opinion.
The article states that personal savings rates decreased from a yearly high of 6.4 percent in June to 5.3 percent in September. Even at 6.4 percent personal savings rates were well below historical highs. I’m sure some people have learned to be more frugal due to the recession but my guess is that most people will ditch frugality as soon as they feel confident about the economy. What do you think?