In the last few months, American consumers have undergone a
profound shift in their shopping habits. We’ve transitioned from
being incessant consumers – the spendthrifts of the world – to
reluctant savers. Here’s the Times: American consumers and
businesses are embarking on an era of thrift as the recession
deepens, saving more money as they cut spending on purchases as
varied as sweaters, new homes and office towers. Department of
Commerce Report on Personal Income and Spending That was the
picture painted by two government reports released on Monday.
One showed that Americans cut their spending for a sixth month
in December as they worried about losing their jobs and earning
less in a deteriorating economy. The personal saving rate in the
last three months of 2008 rose to its highest level in six
years. The challenge for policymakers is a daunting one: How do
you convince people that now is the time to buy? Fortunately,
neuroscience is here to help. A recent experiment, led by
researchers at Stanford Univer