Another Great Depression-like generation or two in the making this recession

July 6, 9:03 PMSimple Living ExaminerSallie Schaaf Borrink

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People are shaped by the historic events through which they live and this was certainly true of those who lived through the Great Depression.  Many of them never looked at money, possessions and debt the same way again.  Even those who were financially secure continued to live as though the next depression were just around the corner.  Living simply and frugally became a necessity in their minds.

John A. Napolitano suggested in a recent column in the Taunton Daily Gazette that our country is currently experiencing something very similar.  In Times change; you should change, too he writes:

I'm thinking that this new mentality on debt and spending may be with us for a long time. Forget about a return to normal times when frivolous spending and unnecessary luxuries ruled your mind. This slowdown may well send another generation or two right back to where our parents and grandparents were on spending. Spend it if you have it and maintain a substantial cushion for unforeseen emergencies, and say no to debt.

Napolitano goes on to suggest that the way people live and how they spend their freetime will also undergo a significant shift, something that will be for the better on many levels:

Potential outcomes from this recession may include lower auto sales forever, the need for fewer restaurants and fewer golf courses, and less attendance at outrageously priced professional sporting events. The potential positive outcomes may include more house parties and dinners at home, and an increase in the use of health clubs and similar mini-luxuries that cost very little and have redeeming benefits for a long time.

Others have called these changes to focusing on home entertainment frugal cocooning.  Whatever it is called, it seems almost certain that at least a few of the upcoming generations will be significantly impacted by this economic downturn.  Children who have watched their parents lose everything are not going to approach life in the same way.  Baby boomers who have lost everything are going to be reevaluating how they counsel their children to go for it all in terms of career and money. 

How and when this recession or depression will end is yet to be seen.  But increasing numbers of people are recognizing that a significant change is occuring in people's perceptions of money, debt, and what constitutes enough.