The slowing economy has been marked by a burst in the housing bubble and a drop in consumer spending, both of which could lead to a long-term change in American’s spending habits.
That’s according to Indiana University Southeast professor of business administration Uric Dufrene. He says credit spending has risen over the past 30 years, but that could change as people spend less and focus on saving and paying mortgages.
“Some of that is on the supply side – the credit markets are frozen and so-forth, but we’re seeing a big, big drop in consumer credit because households are simply de-levering,” he says.
Dufrene made his comments on WFPL’s State of Affairs program Thursday.