AP Photo/Paul Sakuma

A year ago businesses were concerned about the high cost of fuel. Many took steps to reduce fuel consumption and travel. According to an AP article on ajc.com, now that gas prices have dropped significantly, many companies are choosing to leave their fuel-saving measures in place to realize permanent benefits. 

The article cites the example of a company that shut down their physical office and create a virtual office through telecommuting. Another case is a fried chicken company that converted their fleet of delivery vans to run on vegetable oil--something they have in abundance. Both companies plan to continue their cost-cutting efforts, even though gas prices have dropped.

The recession, too, is forcing many companies to find ways to cut costs in order to weather the storm. Necessity is the mother of invention, and many businesses are finding creative ways to operate more efficiently. Though measures such as staffing cuts may be reversed once the economy improves and revenues increase, some measures may be left in place. Consumers, too, may find that they can continue to live without some of the luxuries they may have shunned during the recession.

Such frugality, unfortunately, will likely serve to prolong the recession. Recovery depends on a return to similar levels of spending as before. The government continually reminds us in word and example that our duty is to spend money. Yet, as we have learned, such levels of spending were unsustainable in the long run. A return to that level of spending would mean returning to dangerous levels of borrowing and pressures to inflate earnings for the short term no matter the long term cost.

Economist and actor Ben Stein puts it best in a recent column discussing the frugal ways of his father:

We know that modest desires are the foundation of economic security on a personal basis. There is no catastrophe worse than lavish desires, as a famous man once said. Our great president, Mr. Obama, cannot provide the rock of prudence upon which to build the cathedral of your security. But you can -- if you learn from my father and yours. Basic good sense means not spending more than you can afford and always realizing that calamity can lie ahead; these principles are your lifeboats in any flood.

While no one wants to prolong the recession, difficult times provide an excellent opportunity for businesses and consumers alike to evaluate their habits, goals, budgets, and priorities. Cost reductions uncovered now may lay a financial foundation for a much stronger recovery down the road. Maintaining efficiencies may translated into higher profits as the recovery kicks in, opening up opportunities for reinvestment to further stimulate growth.

The temptation to return to "business as usual" may be strong. The last year has been uncomfortable even for the survivors, and everyone longs for their comfort zones. Bailouts and runaway government spending may have led many to wonder what is the point of being responsible.

The payoff for responsibility and frugality will come when the recovery begins. Those who have prepared will find themselves best positioned to take advantage of the new opportunities that arise.

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