The report by the Commerce Dept. on Monday is kind of good news. Consumer spending is up by six-tenths of a percent in January. Is the US economy roaring back? No. But it is a hopeful sign. The meltdown will end, the US will survive this, but what happens next? 

There are a couple of articles I found that deal with just that. What will the American spending habits be like after the economy is back on a stable footing, homes aren't foreclosed at the current alarming rate and people are being hired again? Will the current frugality that many of us have adopted continue? 

An article that I read in the New York Times pointed to the problems in the recent history of Japan. In the 90's, Japan went through a difficult recession. The Times called it Japan's "Lost Decade". It examines the job loss, free falling stock prices and uncertainty of that time. Sound familiar? The decade long downturn transformed the big spending Japanese into misers. Even when the economy of Japan  turned around after the year 2000, many people there continued their frugal ways and do so to this day. 

You might think this is good news, but Japan depends on it's exports to drive the economy. Now that the worldwide demand for their goods have tanked, there isn't anyone to pick up the slack within Japan. What this means is, although the people of Japan live frugally, they are suffering worse than others, because no one is buying their products, not even their own people.  

Another post, a blog, by "This Blog Sits at"  also explores the possibility that our current frugality might become permanent. Their article questions whether Americans will shift from say expensive European cars to Japanese cars, national brands to store brands, more eating in than eating out, all to make sure we're prepared for the next big financial downturn. Will the American memory be short. They write, "When trust, job confidence, credit and prosperity are restored, the consumer will come charging back.  All is forgiven.  All is forgotten.  We will party like it's 1999."

Hopefully, in the next year or two, we'll know how this will turn out. Will we  go back to our American consumer ways, or will being thrifty become the norm. 

(Photo of Money by flickr user Tracy O. used under a Creative Commons license. Thanks!)