Location Transport

If America's economy is so bad, why is our discretionary spending so high?

Exhibit A: The box office (http://www.imdb.com/boxoffice/alltimegross ) The 2008 release of "Dark Knight" is the 2nd biggest box office success ever, there are three 2008 releases in the top 25, and almost all of the top movies come from the last couple of decades. Is that all based on inflation? Population growth? I doubt it. Exhibit B: Restaurants are being built in my neighborhood at a tremendous rate. If we don't have money to waste, then why are we not cooking at home at about 10% of the cost of eating a meal out? Exhibit C: Gas prices. We complain a lot about gas prices, but I don't see a significant decrease in travel. Why aren't people walking, bicycling, carpooling, or using public transportation more?

Public Comments

1. The answers is that the economy is stressed, but not terrible. People are feeling the pinch, but are slow to change behaviors. Financial pains like this one serve the function of causing much needed behavioral changes and reforms. But fundamentally our economy is quite healthy. And getting healthier as we get rid of a lot of bad practices.
2. i would like to believe that even thought the economy is not at its greatest the way people handle it is differently. For instance, if a family is accustomed to eating at fine dining restaurants every week or every month. They may cut back to eating at casual dining restaurants every once in a while. If a middle class family was able to eat out regularly and the money isnt there but there is a little extra, they may go to the movies and bring there own snacks, and cook dinner at home. Also you ahve to take in consideration that sometimes it is less expensive for a single guy or a couple to eat out instead of cook. Everybody handles things differently but at the end of the day everyone has to do something for themselves in order to not feel so down about there financial situation. It is depressing to always work to only pay bills and not be able to do recreational activities. So even though the rec activities may strain the pocket people are still inclined to do them. And as for the gas prices, I think it all depends on where you live. When possible my family carpool. We have stopped using our SUV unless it is for Long Distance travel and we do our day to day in a beater. Unfortuantely though. Alot of communities a werent set up for something like this. There isnt adequate public trnsportation available. And if you were to ride a bike you would probably pass out. Its unfortuante but I think that public transportation should be like it is in NYC everywhere. NYorkers can tell the gas prices to kiss it and hop on the train that runs 24 hours a day 7 days a week. Even to NJ and Conn.
3. We are consumer junkies . . . However, going to the movies is a lot cheaper than a vacation to Hawaii. Research the new term "staycation." Restaurants are doing very poorly nationally, but your neighborhood may be an exception. Read a bit more. Look around, we have a terribly inefficient public transportation system in most cities. Moreover, the American dream has been to buy a house in the suburbs. Most people do not live close to work, so they can't walk, or bicycle or carpool with neighbors who work at some location not even proximate to their job. So, they commute as usual in spite of the cost and shave on expenses in other areas of their budgets. You don't see a significant decrease in travel because you're not looking; they're talking about vacation travel.