American Spending Habit

Many people probably knows a tradition of American spending habit - spend more than you earn. Church leaders often time remind us to mind our spending and save emergency fund. TV talk shows and books like, i.e. "Finance Dummy 101", try to encourage people to control their spending and the usage of credit card. I always puzzle about this idea and wonder how hard for a person to do this "best practice". I guess it's pretty hard because I think this is a tradition.

Just look at the recent report about the biggest ever deficit in the US government budget - 482 Billion. Also, the mortgage meltdown of the Fannie and Freddie are another good examples of how people like borrowing future money, and the Taxpayers end up paying this big fat, while the people of these two companies enjoying their luxury life and social gathering.

Anyway, I think it's very hard to teach people to control their spending and live within their means while the government doesn't set a good example. Imagine parents teach their kids to clean up their mess while parents themselves also created a mess.

In short, I think changing the American's spending habit like asking a Chinese not to eat rice for his/her lifetime.