The “Recession Diet”: Are You Spending Less?

One of the trends in personal finances that is coming to light right now is the “recession diet.” This is a term that describes consumer behavior in times of economic turmoil. Whether or not we are in a recession is beside the point. Consumers are worried about their personal finances, and that affects their decisions. Calculated Risk describes the “recession diet”:
In economics, “inferior goods” doesn’t refer to the quality of the goods, instead it refers to goods where demand changes inversely with income. As incomes rise, people buy less of the inferior good. But as incomes fall, they buy more.
This …read more