So, what do you propose; buy less stuff or make more money? I'd like to do a little of both.

For some info on 'less stuff' check out http://www.simpleliving.net/ 'More money' may be harder, but I'm thinking we should each try to be less dependent on a corporate source of income (salaried job) and consider small scale independent business.

I like the old saying "It's not how much you make, but how you spend it." Because in the end, if you aren't a smart spender, then as your income goes up, your tastes will go up comensurately and you'll effectively be no better off than before, except that you'll have fancier things.

I think it would be a decent idea to have a class on controlling spending in either high school or college. I think alot of people graduate and have the skills to get a job but have no concept of saving. I wrote a blog about minimalistic living awhile ago over here
http://www.escapesomewhere....

Traditionally this unspent income has been used to accumulate capital for future investment. By contrast, the recent spell of low savings -- or high spending -- has provided a short-term stimulus, helping the nation's output of goods and services grow at an enviable 4.3 percent rate in the third quarter of 2005.

But many experts say that in the months ahead, savings-starved, debt-burdened households will slow their spending and, with it, the economy. "You're seeing a situation where the consumers are spending every penny they possibly can and borrowing on top of that,'' said Joel Naroff, a Pennsylvania economic consultant, who expects growth to cool in the near future.

And while classical economic theory says savings must accumulate for future investment, if consumers suddenly start spending less, it could cause problems. "If everybody decided to save, the economy would contract and you'd lose jobs,'' Leggett said.

The Federal Reserve's Lansing examined the savings argument more closely in a November Federal Reserve article titled "Spendthrift Nation." He noted that in the 1980s the personal savings rate in the United States averaged 9 percent. Put another way, back then Americans spent 91 cents of every after-tax dollar they earned, which left a 9 cent surplus for savings or investment.

During the 1990s, Americans spent about 95 cents per dollar earned and had a nickel left. The nation ended 2004 with an annual savings rate of 1.8 percent. The rate has continued down through 2005, attracting the notice of some prominent economic observers.