A little bit of tension is brewing between saving and spending. It wasn’t that long ago that there would be no argument, at least from the consumer standpoint. Consumers were going to opt for spending every time, hands down. And economists and analysts were concerned that we had lost our equilibrium. We were at a point of negative savings.

But now that sentiment has changed and out “leaders” are on the spending bandwagon!

I’ve read two articles recently - “End the war on savings”, an article in Feb. 12th USA Today by Rourke O’Brien and Alejandra Lopez-Fernandini; and, “Citizens must be ones to bring change”, a commentary in Feb. 13th Iowa State Daily by Erin Mastre. Both allude to the consumer as the key to real recovery in this “thing” (recession, severity not known) we are living thru right now with our economy.

Actually, it has been a long time coming - should have probably hit us around September 11, 2001, even before. But shortly after 9-11 we had that thing called equity that beckoned us on with reckless abandon. Our spending knew no bounds; didn’t even consider that spending, by using debt to fund it (ahhh, isn’t credit great?), was setting us up for a great fall. And now it is here.

And the even sadder issue is that we are expecting someone else to “bail” us out. We’ve come to that! Isn’t that incredible? We spend money we don’t have, probably most often on things we don’t need, and we want someone else to fund it.

Regarding the articles highlighted above - and there are many more - that point out that WE are the answer. We got ourselves into this mess. We have to get ourselves out. It starts by slowing the spending (consuming) and increasing the saving.

But then the argument is, if we do this, more businesses will close (because no one is buying their products or services), there will be more layoffs (more people without jobs), and then there will be more businesses that go out of business (because there are more people who aren’t spending - because they can’t), and the vicious circle continues, on and on and on.

So consumers are being encouraged to borrow so they can spend; and yet they know they must curtail their debtor habits, or they will be worse off.

Where does it end? I think consumers have to answer that. If we continue on the path we were on, it will be a bigger load to carry and a bigger problem to fix.

Government can’t do it. Think about it. Where do they get their money from? From the consumer. Businesses can’t do it. They want consumers to buy! It has to be the consumer; the one who drives all business, with his/her buying and selling. The consumer has to get his/her spending and saving habits straightened out.

Credit unions have always been the type of institution that promotes the very things consumers need more than ever today. A basic fundamental of credit unions from the beginning was promoting thrift. Thrift doesn’t mean “cheap”, but rather responsible use of money. It is a part of the foundation of any good financial management regimen.

We’re going to experience some pain. I don’t think there is any way around it. And no, I don’t like to say it that way, but if we are not honest about what we are up against, we are like the proverbial ostrich with its head in the sand.

It isn’t going to fix itself. There isn’t anybody who is going to bail us out (without extracting a price).

So, credit unions, get ready to do what you always have. Promote responsible saving and borrowing habits. Help people get back on track to fiscal soundness.

Who knows, if we do that well enough, before you know it, the consumer may be wise enough to elect leaders who are real leaders and who will play the role government was intended to play.