Why American Consumers Will Spend Lavishly Again

The previous blog entry is interesting from a sustainability perspective - but at the end of the day, we are not Europe...and the American consumer will not consume like their European brothers and sisters.

One of the conversation starters on the Harvard Business blogs reminds us of this, it is entitled: Why American Consumers Will Spend Lavishly Again. The author is a social anthropologist who has come to understand the American consumer from that perspective. He says that our things define us, but more importantly define what we want to become. He is quite sanguine about the fact that consumption will return and uses the recent history of remodeling as an example. From an anthropological perspective, our constant remodeling is hardly irrational consumption, but actually has a deeper, cultural motive. "Susan (his composite consumer in speaking of an expensive great room remodel) is fashioning her social life. To be sure, there is status seeking here. But there is also something richer and more cultural, as Susan works out new ideas of the "host," "guest" and "entertainment.' "

If this article is correct, it speaks to the continued importance of keeping up with fashion trends in building materials, as when the pent-up demand for remodeling returns, consumers will not be interested in yesterday's fashions. The American consumer looks towards the future, even if that future means looking for new, yet more traditional looks because the resale value of a home is not rising as rapidly as it did during the go-go years.