Coronavirus could create 'a generation of supersavers' and reshape the economy

[Demovictory9]

https://www.cnbc.com/2020/04/03/coronavirus-may-create-a-generation-of-supersavers-who-reshape-economy.html

A generation of risk-averse supersavers could emerge from the fallout of the coronavirus crisis and potentially reshape the economy, experts have said.

Morgan Housel, partner at venture capital firm Collaborative Fund and author of “The Psychology of Money,” said in a phone call that the coronavirus crisis would lead to “a generation of supersavers” who were wary of taking financial risks.

“When you’ve suddenly woken up to the reality that the world is much more fragile than you once believed, you just have a much lower appetite to take risks about the future than you’ve had before,” he told CNBC.

“I think it’s going to lead to a generation that is less interested in taking risk, and they won’t mind if they’re leaving opportunity on the table because they’re just more and more interested in their downside protection than they were before.”

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Housel speculated that the speed at which the crisis had taken hold of the economy would have “a profound impact on people’s ability to think about the future in an optimistic way.”

“Even if this crisis were to end tomorrow — and to be clear, it’s not going to — what we’ve gone through already has been severe enough to leave a generational impact,” he warned.

Although Housel said a societal move toward cash hoarding would likely hamper gross domestic product (GDP) growth, he claimed there would be an economic upside.

“It might lead to a system where we’re actually more capable of managing and absorbing future shocks than we are today,” he said. “Would it be to lower future growth? Probably, yes — but would it lead to a more robust, stronger society financially.”

[AlexSFCA]

1. hopefully

The crisis is making people realize what’s essential and what’s noise.

[smirkymonkey]

2. This has made me realize that I can actually survive with very little.

I don't need all the extras that I usually spend money on since all the stores are closed. Most of it is superfluous. The one nice thing about all of this is that I am saving money. Other than the regular bills (electric will be higher) and food/household supplies, I am not spending on anything else.

The one thing I do need is a new mattress, for my back. My current one is just too old and I constantly wake up with back pain. I should get a little bit of money from the government - not the full amount - and then I can finance the rest. Getting a good night's sleep is of primary importance to me.

[snpsmom]

14. We're saving less

because our two millennial kids have lost their (crappy) jobs and need our support. Luckily, we're late boomers and are able to help them a little so they won't go hungry (for now). The violence done to our economic system by neoliberalism is going to have to be addressed, and it's not going to be by "super savers."

[smirkymonkey]

33. I'm hardly a super saver, I'm just no longer a super spender.

I am re-allocating my priorities. No longer frittering away my money on trifles just being out and about, but being more thoughtful about where that money is going.

[SWBTATTReg]

28. Just a few thoughts here (I'm nosy, I apologize in advance), my back is bad too, and a couple ...

of things I do to help my back is flip the mattress over and rotate it too. Sometimes it gets lumpy, and if you flip it over and rotate it, you are sleeping/resting on a section of the bed that more 'newer' and better shape. I also sometimes put a piece of plywood in between the mattress and box springs. It may stiffen the bed somewhat too, and make it more firmer for your back. Other things I do which you probably already do is use a heating pad and/or ice packs. I use all of these tips and they do seem to help. Another thing that seems to help is walking a little bit. Perhaps you have a safe area where you can walk a little ways, it seems to help me too.

Best of wishes on your back. I know what the pain can be, being that I've suffered from a bad back for quite some time. Take care and be safe.

[smirkymonkey]

32. Thank you for your suggestions!

I do appreciate them. I have tried almost everything, including buying a memory foam mattress (and ice packs & heating pads & external pain patches, etc.) to go on top of the bed, which helped for a while, but is now getting a little worn out. I also pile blankets under my back and have bought knee and back foam back supports, but I think I am like the "Princess and the Pea". I have been trying to make adjustments for a few years and the improvements only last for a few months and I am back to where I was.

The only time I have slept really well is in good hotels with pillow top mattresses, and then I sleep like a dream. The difference is amazing. I can't afford a really top-notch great mattress, but I have found a pillow top mattress on sale for about $1,200 and with a govt. check, a little bit of savings, some birthday money and an extra check in May (3 Fridays) I can afford to pay for most of it and finance what ever is left.

Sleep is one of those things that really makes or breaks my day, so it's very important to me to get a good night's sleep. I feel like I have struggled for years and I am just tired of it. There are a lot of things I need, but I think this is a priority for me.

Thank you so much for your kind concern. I really do appreciate it. I hope you get some relief for your back as well!

[tavernier]

36. Have you researched some back strengthening exercises?

There are some pretty good ones that might help you as much as a mattress. And hey, a good way to kill some time as well.

Here is just one out of dozens of online sites.
https://www.nbcnews.com/better/health/5-exercises-will-strengthen-your-back-reduce-pain-ncna849911

[PoliticAverse]

3. It's going to create a generation...

with a 6 month supply of toilet paper in closets.

[Demovictory9]

4. lol

[Totally Tunsie]

5. And to think kids used to throw TP over tree limbs,

usually in celebration of the home's occupants. These days, that's bordering on an arrestable offense...not to mention having all those neighbors climbing your trees for the TP.

[Meowmee]

7. This

And non perishable food etc. because we know now how easily our supply chain gets fucked up and can barely function. It took me two days of non stop checking to get a food delivery set up and I still have no clue if any of it will be in stock by then because it takes a week to get it done. Or if it will even arrive. And then I have to spend hours sterilizing everything if it does arrive.

I can’t get a delivery at all at my wf. I managed to order a few non perishable items from online and amazon which is a bit delayed but which is coming through in a way the grocery stores etc are not. I am going to buy a freezer and stock up meat and frozen veggies because who knows how long this will last and how bad it will get. I will not be going out for a long time.

[sarge43]

12. Some forgotten skills may be relearned, too.

Canning and sewing come to mind.

[Meowmee]

20. I have a sewing machine and reupholstered several large items

It was extremely hard work. I am not so good at clothes but I can do a skirt etc. Not that I need any now. Material is very expensive though. I have never tried canning. I will have to research it. I don’t like canned foods much. But it is better than starving.

[sarge43]

21. Canning saves a lot of trips to the grocery store.

One bit of advice if you have a go at canning

Let the food set in the jars for a month or more before using it. This will let the ingredients mix and mellow, much more flavorable.

[Meowmee]

23. Thanks 😊 first I have to get the food to can which seems doubtful now

A delivery may be coming this week, hopefully but no canning stuff. I will have to think about it and see what I can get. I like foods that are pickled in jars but they are making me worse due to the vinegar etc. right now.

[sarge43]

27. Just about anything can be canned.

About the only exception is flaky fish, like haddock. The heat turns them to mush.

One other tip: Use the wide mouth jars, easier to clean and the lids/caps are interchangeable for both pints and quart.

[Squidly]

30. It can be pickled though

If you like that sort of thing

[sarge43]

31. Of course. Canning was made for picking

I love that sort of thing.

[Meowmee]

35. Thanks😊

[SammyWinstonJack]

8. Ha!

[RobinA]

16. Ya Got That Right

I know when this is over and shelves are fully stocked again I'm going to be doing one helluva lot of saving. I've got my list going, and by flu season this fall I shouldn't have to go to the store for months.

[Ilsa]

26. The tp thrown over the oak at Toomer's Corner on the Auburn campus

will lessened this fall, I think.

https://flic.kr/p/252wLA2

[DENVERPOPS]

6. Agreed Demo

Like you said, if this were to end tomorrow, the damage has been done.
People are saying this will be like the Great Depression. They must be doing drugs because the Depression will be a far second compared to what is about to descend on the American People.......Katie Barr the Door.

WASF

[Victor_c3]

25. I hope your wrong.

I would like to think that we learned how important government stimulus is to growing economy since the depression. Hopefully, programs like the Tennessee Valley Association and other public works programs will go into full force quickly.

We have a lot of infrastructure that needs to e modernized. Now (well, after the outbreak) would be the time to do it on s gigantic scale.

Most importantly, I hope society learns once and for all that trickledown economics from the rich to the poor doesn’t work. If it did, the billionaires we currently have now would be creating all sorts of jobs for us spontaneously. A bunch of low wage earners losing their shitty jobs and not buying stuff wouldn’t have a very small impact on the economy.

[Wabbajack_]

9. I doubt it, advertising is powerful

[ancianita]

11. Risk and threat are often confused.Downside protection is about threat assessment, not risk aversion

That's not splitting hairs, either.

We always were more fragile than we thought. Now, most people are waking up (to the evolutionary truth that we're not the apex predators on the planet). Because they've just learned that there is much more threat around us than they thought.

When the threat is assessed as the same for everyone, one can see the high risk takers and the low risk takers. Differences in their strengths, resources and resilience determine their risk taking.

Preparation for threat sets our risk parameters. And of course, how we see our lives.

Often the only thing left is a leap of faith, as believers say, whether it's in a god, science, strangers, the dollar, etc.

In evolutionary terms, adaptation trumps (god I hate that word) domination. When we try to adapt, our chances of surviving threat are higher than when we try to dominate.

[DeminPennswoods]

13. Venture to say the parents of

many DU'ers are or were survivors of the Depression and WWII rationing. I know my folks were savers and passed that down to me. Mom always saved the pins that held new clothes together. The last bit of a bar of soap was just pressed into the new bar, something I still do today.

This assessment of the younger generation doesn't surprise me at all.

[Amishman]

15. Definitely possible, older millennials were trending that way already

I'm right on the millennial / gen X line,and I know plenty my age who hate debt. The experience of graduating and being crushed by student loans trained many in this age group to avoid debt if at all possible - which at this stage of life largely can't be done.

There is a lot of focus on paying off debt, and in ten years you will have a generation with far less debt - and no desire to repeat the experience.

[tanyev]

17. Except you have to have something to save first.

Many don't.

[Initech]

18. I've definitely put all major purchases on hold for the time being.

I need to get a new car, not doing that for a while. Need to get a new phone, also put that on hold. Need to upgrade my computer, also put that on hold.

Plus vacations and events that I've been planning are on hold. So yeah.

[Nay]

19. As a life-long supersaver and general all-round cheapo, I hope this comes true.

Growth in the economy needs to slow if only for ecological reasons.

[Calculating]

24. We need consumption and growth for people to have jobs though

Capitalism itself is built upon the idea of never ending growth and limitless consumption. The second people stop "buying things they don't need" it all comes crumbling down in a hurry. Just look at our economy and imagine what would've happened in good times if everyone decided to 'stop eating out and bring cheaper/healthier lunches from home' or that they 'really don't need the latest iPhone with a 10% better camera'. We have a huge problem where too many people have jobs in the luxury and service fields. Not enough people are involved in the essentials these days. We also can't just send everyone back to working in the essentials because automation has greatly reduced the number of workers needed for things like farming/manufacturing/etc. So what is the solution? Hell if I know. We've built our whole society off a fundamentally flawed economic model which depends on unsustainable growth and consumption to keep the show going.

[Nay]

34. You are exactly right. Capitalism cannot continue on a finite planet. As long as we

think that we can pick up where we left off, we will be in trouble. But it is very hard to change anything at this point, since the wealthy still want to extract resources from us and the planet. I can't help but feel we will come to a bad end.

[hatrack]

22. Big assumption by CNBC that they'll have anything to save . . .

Maybe like Mitt Romney they'll just sell some stock they inherited and start their own leveraged buyout firms.

Yeah, that's the ticket.

[LisaM]

29. Saving money is one thing.

I do have a.modest cash reserve, enough to make it for at least a year in a pinch. It took me years to do this, and times when raises were slim and rent increases high have not helped.

As far as large stores of other things, it's not possible in our smallish apartment. Prior to this pandemic, people have been pushing density on so many fronts. Those of us who live in apartments are screwed. We can't store five months worth of food and now when other people bare enjoying spring and posting pictures from porches and decks, we are stuck inside. So much of apartment living is based on shared spaces, frequent trips to the store, etc. We are thrown into contact with others all the time.