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Is this the generation of the Big Spenders?
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by Man About Town
Do the “big spenders” now outnumber the “savers”? I think so, in fact I’m absolutely convinced they do.
I’ve had this conversation out with many people, we live in a throw away society where people live for today and don't think too much about tomorrow.
I remember watching a programme some time ago on a UK TV channel. I was alarmed to see that in today’s modern societies there was this massive culture shift, it's all spend, spend and spend is the order of the day, ‘live for today, tomorrow will eventually catch up’ that’s today’s consumer‘ motto’ even the world Recession hasn’t halted the spending frenzy much?
This cultural or social shift has never seen so many people in debt and ‘yes’ Gibraltar has also been caught up in this cultural spending phenomenon, particularly over the last 10 years or so!
Since over a decade ago Gibraltar has seen a dramatic rise in the number of people using credit to fund larger purchases, like most places we have definitely become more impatient as a society, and this has meant that where we see an opportunity to acquire expensive consumer items, we are unlikely to snub that opportunity.
GOOD THING?
Due to the rise in availability of credit especially before the world recession hit the scene, people have been taking out loans or putting expensive purchases on credit cards, this to spread the cost over time. But is it a good thing? Certainly, none of us are complaining when we get home in sit in front of our big wide plasma screen TV or new car, but what about when the payments start coming in?
Until the recession took hold of world finances a couple of years ago, it seemed to be so easy to live on credit. I remember the early days of credit cards – banks use to send you a credit card even if you didn’t ask for it! I suppose there were other ways of living on credit before that, and equally expensive or even more I would imagine!
Mortgages are different – interest rates are lower – and if you don’t buy a house, you still have to find the rent. But it definitely was different in those days. You had to beg for a mortgage, and the repayments nearly killed you. However, inflation came to the rescue and the pain only lasted a few years. Until recently, Mortgage Lenders were falling over backwards to lend to you – the repayments might be slightly more affordable than when I first bought a house, but they go on and on don’t they?
How many families in Gibraltar are now Home Owners compared to say 15 years ago, I would say over half of the population if not more. The number of young couples with families who have bought into a new home! You could not expect for people to want anything less but to own their own place of abode and secure a future investment for themselves and their family.
But! Borrowing and lending anywhere you go comes with risks. The credit crunch came as a wake-up call to many. It had simply become too easy to borrow – and many feel that societies were not weighing up the risks. Now mortgages are harder to get as we have been hearing on the news recently, a story that PANORAMA put on the public domain.
'Buy now pay later' appears to be becoming an uncomfortably popular mantra amongst the younger and rising generation who only appear to save when they are planning to make a major purchase with the proceeds, the buy now pay later culture has already been a slippery slope to many of unfortunate people.
But everywhere you turn nowaday you seem to have to dip into your pockets to pay for everything, and at exorbitant prices, what about the price of essential items in life, those that we can not live without. Gibraltar I feel is at great disadvantage to many other places when it comes to the essential products in life, like, Food, Electricity, Water and Telephone Charges. It doesn’t help either when our personal tax system is one of the highest going around in Europe. People feel overtaxed because they are overtaxed!
Spending money is fine, as long as there is money there to spend. Otherwise, it needs to be considered long and hard in the context of your personal situation. Experts say ‘if it is a matter of making the purchase now and worrying about how you will pay for it later, it really a good idea to adopt a leave it behind for now situation’
MATERIALISTIC GIBRALTAR
In today’s Gibraltar their are people who have described this society as a materialistic, but having said that, who doesn’t enjoy having new and enjoyable possessions which can make life easier, a more varied and general overall way of life is just more fun, of course it is. Experts have also said the risk of seeing life in this way is that it can make people go to extreme lengths to keep up. When you see people around you who seem to have the best clothes and gadgets, and appear to be enjoying life more, there is a real temptation to keep up, even at the risk of living beyond ones real means, which is not a bright thing to do, but many people do it, and it appears to be happening more these days!
Although the spending culture which I think has gripped Gibraltar does not stop with the ordinary citizen, the Government has been at it hammer and tongues.
I think that in this wonderful and fascinating world of politics many politicians naturally assume public spending is good and more public spending is better.
Although Government may be of the opinion that all public spending is popular and that Gibraltar needs more of it, but does Government understand the public or the nature of public spending that many people would like to see? I can see that finance issues and spending is going to be popular in the next election campaign, and so it should be.
I’m quite disturbed to think that Gibraltar could be turning into a society with a culture dominated by financial debt. More and more our economy particularly where personal debt, credit and financial liabilities is concerned, is showing signs, which if anything, should be held in check or seriously monitored.
Medical experts also consider important the strong linkage between consumer culture and human well-being. Experts have also said that materialism is associated with relatively low levels of well-being and psychological health, as well as relatively high levels of self-importance, depression, and anxiety.
Scientific and medical evidence suggests that aspiring to greater wealth and material possessions is associated with increased personal unhappiness. People with strong materialistic values are more anxious, more selfish, more depressed, use more mind altering substances, and have more relationship problems. They also tend to be more sedentary, sleep less, and tend to be emptier of heart and soul, that’s what the experts say.
Our relationship with money can seriously undermine our sense of self; make us feel guilty and out of control and even jeopardise our health and safety, it can also have a devastating ffect on family life.
There’s nothing wrong with wanting more money to form a better life for you and your family. Money is not the root of all evil...well it is if you let it be!
04-02-10
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