If the economy improves, it won't last.  Those of us in our late 20s and early 30s were constantly told as we were growing up that an employment nirvana awaited us upon adulthood-- we could do anything we wanted, and there would be jobs everywhere as the baby boomers left the workforce.  Instead we find ourselves under crushing student loan debt and fewer and fewer high-quality jobs, while trying to keep up with the generation right below us that is even tech-savvy-er than we are. We are being frugal because we must.   In other words, many people my age are feeling cheated.  And feeling cheated is the first step in over-indulging yourself.  I grew up poor, so I as a highly-educated person, can afford more than what I had as a child.  But I still have less than what most of my middle-class friends' families had when I was growing up, and  am make $12/hr with my J.D.  One ray of hope?  Every person I know of my age wants to get out of debt, forever.  That's at least one thing these huge student loans did that was positive.  

The BIG THREE????? Blaming the fact that consumers bought SUV's on the auto companies? The Auto companies built them because the consumer WANTED THEM. They are scaling back now because the consumer doesn't want them. They have been building the Suburban since the 70's. The consumers started buying them so the manufacturers built more. I had a 1984 Suburban when the average household would never have thought about buying one. Then, the consumer started wanting bigger and bigger vehicles. They started buying SUV's instead of cars, vans, and station wagons. The consumer demanded these bigger vehicles. Don't blame companies for these problems, it's always supply and demand. If the consumer had never started snatching uo SUV's, they would never have built them. Consumers, of which I am one, quit blaming everyone else and look in the mirror.

I have always been combining my trips to save time, and now, money on gasoline. I did eat out maybe 1 a week for lunch and 1 a week for dinner, but now, down to maybe every other week for dinner, and 1 a month for lunch. But, I have lost over 50 pounds 2 years ago, and changed my eating habits then. I too was shopping at the malls every weekend. Now, I cut down to every other month. Shopping was my biggest habit to break. My kids would tell me they didn't need any more clothes, but I chose to buy them more, not them asking me. The only things they would ask for was new gym shoes twice a year. BTW, when I do shop at the malls now, the store that is always the crowdest is the Apple store. I don't shop there, but many people still are.  

keeping your spending below your earnings should not have anything to do with recessions, it should be a way of life. Sure we all probably save less during peak economic years and are more likley to buy expensive handbags, but you should still never go into negative territory with your monthly budget. That is dangerous regardless of how the economy is performing.

I just became the latest victim of the recession, losing my job.  Am I worried?  Not at all!  My wife and I were making a mint with two incomes, no kids, and the very spending habits that the author laments America's loss of, so we figure that our $8,000 emergency fund could last us up to forty months.  If the economy's not better by Christmas of 2011 we've got bigger problems than just having to go to Safeway instead of Whole Foods.

What the declining middle-class birthrate because nobody wants to incur the expense and bother of raising kids says about America and its future is another matter, however.

My husband and I are college graduates, both of us work full-time, and since we had a few unexpected but necessary expenses, we can't pay the bills. We rarely go out, don't take trips, and drive a 1991 car. Our children are grown and out of the house. The prices are going up faster than our incomes. In the meantime, the government bails out the huge multibillion-dollar companies that are stealing us blind!

You can't fix stupid. The animal house syndrome - fat, drunk stupid and lazy.

Complacency sets in, then entitlement, followed by demise and finally bondage.

The U. S. is now somewhere between entitlement and demise. The worst part is we still believe we are the greatest country on the face of the earth. 99% of those under 40 don't realize they are staring into the abyss, not a Starbucks latte. Once we find a cure for ignorance, if we do, it will be too late. We will be bonded to the muslims.

I missed the 70's. Probably becuase I wasn't born until 1980.

I like Celia's insightful comment, comparing spending to crash dieting. Sensible spending should be or become a lifestyle for all of us.

Growing up on a farm taught me to be self sufficient and not trust bankers and people with more money than sense.  I don't save as much as I should, but I also have just about everything I ever wanted and then some.  I work at a good job, but I try to think about what would happen if I lost the job.  That keeps me working smarter.  Call it cheap, call it frugal, call it poverty driven if you want, but the truth is I learn to live within my means most of the time and try to keep my credit card balance paid down.  I drive to town once every two weeks for supplies unless I have to do something else.  I make much of my own stuff unless it costs more to make it than I can buy it for.  When I have kids I hope to teach them the same things and instill in them the fact that nobody guarantees you anything in this world.

While I was young, I learned pride of accomplishment and standing on your own.  We could have easily qualified for food stamps and assisted living, but we had pride.  We didn't take handouts, we worked 80-100 hours a week every week and went on vacation once a year to see family.  I missed out on a lot of things, but the experience has taught me perseverance, pride in a job well done, and self sufficiency.  You could turn out my lights and take away my money tomorrow and I would survive.  How many others would be willing to endure that sacrifice?

If the founding fathers and pioneers that made our country great were to see us now, would they be proud, or would they be shameful?