In the news, consumer confidence was up last week. That may be encouraging, but right now there’s not much more cash in our wallets or purses than there was a week ago.
The Conference Board Consumer Confidence Index reached an eight-month high, the headlines screamed. The body of the story noted consumers still aren’t brimming with optimism, but they’re less worried than they were last fall and winter. TV’s talking heads weighed in with the view that second-quarter growth would be “less negative” than in quarter one.
We’re still falling, but the cliff isn’t quite so high.
The issue before us, then, is how does the uptick in what the economists call “consumer confidence” affect our spending? Positive feelings about the economy feed the national psyche, just as negative feelings did when the economy went off the rails and the stock market followed.
More positive feelings are what retailers have dreamed of for months. Most consumers are still wary, sticking largely to discount stores when they do spend their money. But as “confidence” builds, retailers hope customers will begin spending in their stores again.
Broad-brush observations are risky, but I’ll risk one: We as a consuming society rely too much on the endorsements of others rather than our own research and common sense. A reason may be that we think we need heroes to lead us out of the market wilderness. Oprah Winfrey is a hero to many; lots of people have bought prod-ucts simply because they made the “O list.”
Whether that kind of hero worship continues to translate into massive sales is unknown. Advertisers still rely on celebrity endorsements among their most-trusted buying triggers; but even high-end shoppers, who may not have to worry about pinching pennies, are looking more and buying less.
We’ll urge buyers not to look outward, to advertising by heroes or other influences on their spending. Let’s all look inward, to our own values and priorities, when deciding where our limited dollars should go.
When cash wasn’t so tight, the fashion-conscious person in touch with the world might buy a new cell phone every year (or more often) and simply toss the old one. Today, if it works well, that phone might earn several years’ service — even if it can’t take pictures — before being recycled to a shelter or other worthy recipient.
We might decide to fix up our present homes rather than committing to bigger mortgage payments on newer ones. Or we might decide, with home prices down, that this may be the best time to buy a first house.
When we buy something, let’s look for more than low purchase price. Let’s make sure we can get service if needed. And let’s look locally first, since local merchants cut their teeth on good customer relations.
Whatever our market decisions, let’s make them in our own best interests. Our dollars don’t have to fit others’ agendas. Let’s think for ourselves, and make every dollar count. That may be the best way to get the economy going the way we think it should.
Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s membership-funded, nonprofit consumer organization. Individual and business memberships are available at modest rates. For assistance with consumer-related issues, including consumer fraud and identity theft, or for more information, write: Consumer Forum, P.O. Box 486, Brewer 04412, or e-mail contacexdir@live.com.