It's become the conventional wisdom that the US economy is built on Americans' endless appetite to buy lots and lots of stuff.
Household consumption makes up about 67 per cent of gross domestic product. When the economy falters, we're told spending is our patriotic duty.
But suddenly, Americans can’t spend like they used to. Store shelves are emptying and it can take months to find a car, refrigerator or sofa. If this continues, they may need to learn to do without – and, horror, live more like the Europeans. That actually might not be a bad thing, because the US economy could be healthier if it were less reliant on consumption.
After all, Americans haven't always acted like this. We've entered an age of overabundance. We consume much more than we used to and more than other countries. Consumption per capita grew about 65 per cent from 1990 to 2015, compared with about 35 per cent growth in Europe. Household consumption makes up only about 50 per cent of GDP in Germany.
And these numbers reflect big changes in Americans' lifestyles. The average US home was 1,700 square feet in 1980, by 2015 it was 2,000 square feet, even though the number of people in the average household shrank. In 1980, 15 per cent of households didn’t have a TV, now only about 3 per cent don’t.
In 2015, 40 per cent of American households had three or more TVs, including 30 per cent of households earning less than $40,000 a year. In 1980, only 13 per cent of households had two or more refrigerators. In 2015, 30 per cent did – including many low-earning households.
Clothing purchases have increased five-fold since 1980 and the average garment will only be worn seven times before it's disposed of.
Our spending habits slowed during the pandemic but, despite all the shortages, they've come roaring back.
There are many reasons we’ve become a nation of shopaholics. We’ve become a richer country, which means we spend more. Many goods have become cheaper and more accessible. That's partly because of technology that makes production more efficient.
For shoppers, the internet makes it easier to find more goods for the best prices without even leaving their homes. The other big factor is we get more stuff from abroad, imports of goods and services as a share of GDP has nearly doubled since the 1980s.
Lots of trade has been with countries like China and Mexico, which have lower labour costs. Even American-made goods use parts that come from abroad.
We experienced the vulnerabilities of a global supply chain in the past few years, but when it does work (most of the time) it means the US can fully exploit the comparative advantages of trade and provide goods more efficiently, faster and for less money.
The pandemic revealed vulnerabilities of this hyper-efficient global market. Ports are backed up causing shortages – for the first time in many Americans’ lives.
The odds are that, eventually, the port issues will be resolved (we hope). But there are reasons to believe the age of overabundance is over.
Even before the pandemic, the US government offered more subsidies and imposed more tariffs to encourage companies to produce more goods domestically and the Biden administration wants to expand the effort to promote resiliency.
That may mean more goods are made in America, but over the long run less trade tends to mean less variety of goods at higher prices.
Meanwhile, the US economic relationship with China becomes more uncertain each day. If it deteriorates further, that also tilts the US towards less trade and fewer cheap goods. The future of trade is a big unknown, but if we turn inward, Americans won't be able to sustain the same levels of consumption.
Finally, if we are truly serious about protecting the planet, being a good global citizen will take more than driving an electric car or installing solar panels. It means consuming less so that we throw less away. Maybe that means getting by with only one refrigerator or avoiding fast, disposable fashion.
Americans tend to overspend or buy cheap substitutes rather than save up for longer-lasting, better-quality goods. That's a function of the accessibility of cheap goods, of having more space to store our purchases, and also of a culture where buying stuff feeds the empty parts of our souls.
European souls are not necessarily more fulfilled, they just find other, more eco-friendly ways to shut out the darkness – like going on a long bike ride.
World%20Cup%202023%20ticket%20sales
%3Cp%3EAugust%2025%20%E2%80%93%20Non-India%20warm-up%20matches%20and%20all%20non-India%20event%20matches%0D%3Cbr%3EAugust%2030%20%E2%80%93%20India%20matches%20at%20Guwahati%20and%20Trivandrum%0D%3Cbr%3EAugust%2031%20%E2%80%93%20India%20matches%20at%20Chennai%2C%20Delhi%20and%20Pune%0D%3Cbr%3ESeptember%201%20%E2%80%93%20India%20matches%20at%20Dharamsala%2C%20Lucknow%20and%20Mumbai%0D%3Cbr%3ESeptember%202%20%E2%80%93%20India%20matches%20at%20Bengaluru%20and%20Kolkata%0D%3Cbr%3ESeptember%203%20%E2%80%93%20India%20matches%20at%20Ahmedabad%0D%3Cbr%3ESeptember%2015%20%E2%80%93%20Semi-finals%20and%20Final%3C%2Fp%3E%0A
The%20Specs%20
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COMPANY%20PROFILE
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RESULT
RS Leipzig 3
Marcel Sabitzer 10', 21'
Emil Forsberg 87'
Tottenham 0
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
Day 2, Abu Dhabi Test: At a glance
Moment of the day Dinesh Chandimal has inherited a challenging job, after being made Sri Lanka’s Test captain. He responded in perfect fashion, with an easy-natured century against Pakistan. He brought up three figures with a majestic cover drive, which he just stood and admired.
Stat of the day – 33 It took 33 balls for Dilruwan Perera to get off the mark. His time on zero was eventful enough. The Sri Lankan No 7 was given out LBW twice, but managed to have both decisions overturned on review. The TV replays showed both times that he had inside edged the ball onto his pad.
The verdict In the two previous times these two sides have met in Abu Dhabi, the Tests have been drawn. The docile nature of proceedings so far makes that the likely outcome again this time, but both sides will be harbouring thoughts that they can force their way into a winning position.
F1 drivers' standings
1. Lewis Hamilton, Mercedes 281
2. Sebastian Vettel, Ferrari 247
3. Valtteri Bottas, Mercedes 222
4. Daniel Ricciardo, Red Bull 177
5. Kimi Raikkonen, Ferrari 138
6. Max Verstappen, Red Bull 93
7. Sergio Perez, Force India 86
8. Esteban Ocon, Force India 56
THE%20SPECS
%3Cp%3EEngine%3A%203-litre%20V6%20turbo%20(standard%20model%2C%20E-hybrid)%3B%204-litre%20V8%20biturbo%20(S)%0D%3Cbr%3EPower%3A%20350hp%20(standard)%3B%20463hp%20(E-hybrid)%3B%20467hp%20(S)%0D%3Cbr%3ETorque%3A%20500Nm%20(standard)%3B%20650Nm%20(E-hybrid)%3B%20600Nm%20(S)%0D%0D%3Cbr%3EPrice%3A%20From%20Dh368%2C500%0D%3Cbr%3EOn%20sale%3A%20Now%3C%2Fp%3E%0A
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The biog
Favourite car: Ferrari
Likes the colour: Black
Best movie: Avatar
Academic qualifications: Bachelor’s degree in media production from the Higher Colleges of Technology and diploma in production from the New York Film Academy
Revival
Eminem
Interscope
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
MEFCC information
Tickets range from Dh110 for an advance single-day pass to Dh300 for a weekend pass at the door. VIP tickets have sold out. Visit www.mefcc.com to purchase tickets in advance.
Q&A with Dash Berlin
Welcome back. What was it like to return to RAK and to play for fans out here again?
It’s an amazing feeling to be back in the passionate UAE again. Seeing the fans having a great time that is what it’s all about.
You're currently touring the globe as part of your Legends of the Feels Tour. How important is it to you to include the Middle East in the schedule?
The tour is doing really well and is extensive and intensive at the same time travelling all over the globe. My Middle Eastern fans are very dear to me, it’s good to be back.
You mix tracks that people know and love, but you also have a visually impressive set too (graphics etc). Is that the secret recipe to Dash Berlin's live gigs?
People enjoying the combination of the music and visuals are the key factor in the success of the Legends Of The Feel tour 2018.
Have you had some time to explore Ras al Khaimah too? If so, what have you been up to?
Coming fresh out of Las Vegas where I continue my 7th annual year DJ residency at Marquee, I decided it was a perfect moment to catch some sun rays and enjoy the warm hospitality of Bab Al Bahr.
GROUP RESULTS
Group A
Results
Ireland beat UAE by 226 runs
West Indies beat Netherlands by 54 runs
Group B
Results
Zimbabwe tied with Scotland
Nepal beat Hong Kong by five wickets
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
MATCH INFO
Europa League semi-final, second leg
Atletico Madrid (1) v Arsenal (1)
Where: Wanda Metropolitano
When: Thursday, kick-off 10.45pm
Live: On BeIN Sports HD
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
MATCH INFO
Asian Champions League, last 16, first leg:
Al Jazira 3 Persepolis 2
Second leg:
Monday, Azizi Stadium, Tehran. Kick off 7pm
