Lavish vs. Saving

Kyle Willard

Dr. MacReynolds

Economics 1050

18 November 2014

The Different Types of Spenders

In the economy, there are two types of spenders. Those who spend lavishly, and those that save. The perception in society is that people, who spend lavishly, create an affluent economy. On the contrary, people that save bring on a recession. Either way, people are trying to enhance their style of living in the best way possible.

People that fall into the category of “spending lavishly” probably live in the moment. Many people in this category are probably young. Kids in college are focused on the now, as opposed to twenty years down the road. Almost all activities in college towns cost money. The upper class could potentially be people that spend lavishly. They spend their money on the newest clothes, cars, and other tangible items so they can look respectable in front of their colleagues and peers. When people spend money quickly, they are giving the economy a boost and can begin to jumpstart it because of how much more expensive items are.

Saving is something that is important no matter what age or lifestyle you lead. Older people that lived through The Great Depression feel the need to save as much money as possible because when they were living through it they did not have any. They were forced to save every penny they had. People in this category probably are somewhere in the middle class. They live below their means so they can have more costs. Because no money is being pumped into the economy, this can cause a recession.