Wealthy Americans Unholster Their Weapons

Townhall.com ^ | August 9, 2009 | Dan Kennedy

[Kaslin]

The resistance is well underway.

Affluent Americans – defined as the top 20 percent of U.S. households by income – spent about 10 percent less in 2008 than they did in 2007, according to a study by luxury-goods researcher Unity Marketing. And those households with incomes of $250,000 or more are cutting back on spending even more than all affluent households overall. 54 percent of these consumers are spending even less in 2009 than in 2008.

Those $250,000+ earners, threatened and demonized by President Obama, are retaliating with their most powerful and damaging weapon: not spending. It is a quiet, deliberate, determined, very real resistance.

To be sure, some of the cutbacks in spending are related to investment losses, job losses and actual reduction of spending capacity. But much more has nothing whatsoever to do with the ability to spend – only with the unwillingness to spend.

Most in media do not understand the reality of this deliberately reduced and postponed spending as a political resistance movement. But that’s what it is. I’ve talked to many affluent entrepreneurs and professionals who have worked hard for years to finally reach their present income levels. They are intentionally refusing to spend money as a means of protest.

I was recently thinking about replacing my Ford Explorer with a new SUV, at minimum a new Explorer, but perhaps a Lincoln Navigator or Cadillac Escalade. The day Obama first trumpeted the proposed 5.4 percent tax surcharge on gross income of us high-productivity, high-responsibility, high income earners I changed my mind. Instead I spent $514.00 getting a little fender ding months old fixed, paint scratches touched up and the car detailed. The $30,000.00 or $40,000.00 I would have spent on the new car – and I’m a cash buyer – can sleep idly in the bank until the man who has chosen me as his target is gone. And I view it as deliberately depriving him of spending he desperately needs to help his economy. He needs me and others like me buying a new car a whole lot more than I need one.

This is also the first calendar year in at least a decade in which I’ve gone 7 months without buying so much as a single stitch of new clothing. Not a necktie, not a sports-jacket, not a shoelace. Not because I lack the financial ability. And not because I lack interest. I usually buy at least a few new things each season, and for my speaking engagements, I’m actually overdue a new suit. A store I patronize even advertised a remarkably attractive offer last week, offering two free suits with purchase of one. But I will not give the president even a dime of help. I have joined the Affluent Resistance Movement.

Business owners, CEO’s and entrepreneurs are resistors too. Fred Smith at Federal Express has outright stated his company’s order for a fleet of jets is pending and subject to cancellation should the speed-to-unionization scheme Obama supports be enacted – in effect, another epic tax on businesses like his. More CEOs need to step up and make similar threats. If the President will threaten business, why shouldn’t business threaten back?

Together, those in the resistance should all go public, and tell the affected merchants, service providers and professionals why. Business leaders can explain to their vendors that the money not spent with them is political resistance. If those of us in the $250,000+ targeted group, and those who lead companies small and large, all cut spending by yet another 10 percent or 20 percent, we can protest more emphatically than if we all picked up placards and marched up and down Pennsylvania Avenue. We can demonstrate that no power trumps the power of the purse.

It pains me greatly to suggest this, since I advise businesses on marketing and I am paid to help them boost sales. But desperate times demand desperate measures. So I say: send a message. Join the resistance. Buy nothing.

[trumandogz]

Sounds like Great Advice for everyone to follow.

So please, do not buy anything and make the prices of things that I want fall.

Thanks for helping my family and I save Money!

[Gaffer]

Never saw it before you linked it.

[chris_bdba]

WE don’t make that much $$ but we have cut back on spending. If I don’t need it I don’t buy it.

[AAABEST]

My wife and I are spending a small fraction of what we were a year ago. We never had much debt to begin with, but now we're making an extra effort to wipe out whatever is left.

We are also avoiding buying from companies that are in bed with government or are Maobama cronies. For example, we had been thinking about getting a Hummer H3, but that's off the table since the auto takeover. I haven't bought any ammo at Walmart since they got on board with the healthcare bill.

Of course it takes a certain degree of sacrifice, but if enough of us do these things, we can cost our enemies countless billions and help to starve them out.

[Concho]

Rather than purchase locally where we have almost 8% sales tax on food, we drove 40 miles yesterday across the state line to purchase a months supply of food where there is no tax on food.

[hsalaw]

Since Christmas we have bought nothing but gas, food, and...defensive things.

"Defensive things" - I love it. For me, food, gas, and - occasionally - yarn to knit for gifts. The article's right: I've stopped spending even though I could, but it's more because I expect to be taxed to death. I live in California.

[PLMerite]

Maybe also put some cash in the mattress so you aren’t as “rich” on paper in case they find some way to work that against you.

[NaughtiusMaximus]

For Christmas this year my wife is knitting me a scarf and I am making her a cutting board out of some hardwood scraps I’ve had hanging around for years. I’m putting up a couple of strands of outdoor lights to entertain the little kids in the neighborhood.

70% of the economy is consumer spending. The big profit month for most retailers is the Holiday Season. All the Hopey Changey folks better dump extra billions into the economy starting in November. But they won’t ‘cause they can’t.

[gusopol3]

Dan (if you used your real name), you just signed up for IRS audit; let us know how it goes.

[Noumenon]

Sir Edmund Burke once said, "No one could make a greater mistake than he who did nothing because he could only do a little." Everything you can do counts - here's what you can do right now. From my Fourth of July Tea Party Speech

• Participate in the nearest Appleseed Project event and join a community of likeminded people where you’ll learn the history and tradition of the first American Revolution - and you'll learn to shoot like a rifleman while you’re at it.
• To the extent that you can, remove your children from godless public schools where they're taught socialism and sheepery. Teach them history and the principles of freedom instead.
• Take as much of your personal and business economies underground as you can. Don't feed the beast that's feeding on you.
• Join up with Glenn Beck's 912 Project - a latter-day network of the original Committees of Correspondence - to meet more like-minded folks.
• Connect with people in your own neighborhood and build your own 'Alarm and Muster' network. In the times to come, you’re going to have to know who you can depend upon.

Do it now, folks, for it may be the last chance you're going to get.

[jblann1]

Our family spending plans have changed too, our main focus is to get all debt paid off, credit card-type debt by the end of this year.... thought of buying a new car (we will need to soon) but instead will hang on to our “clunkers” They have been well-maintained, and will cost far less to fix any issues rather than racking up alot of new debt for a new car that may in the end cost far more to repair and maintain... at least for now.

[yefragetuwrabrumuy]

I think a better way of putting this is “don’t invest where you will be punished”. This is far more to the point. For example, if Obama wants to jack up the capital gains tax, don’t invest where there are capital gains, instead invest in tax free investments, like (selected) municipal bonds.

Since the government has outlawed incandescent light bulbs, starting with 100W bulbs in January of 2012, that is, in just 28 months, invest heavily in 100W bulbs. Buy enough light bulbs to last you for 20 years. Figure 5 a year, that’s 100 bulbs, or 25 four-packs.

Because the government’s economic policies are so reckless and out of control, it would probably be a good idea to invest in some emergency food and other supplies, as well as health products.

But the all time best investment is always people. If you have a network of friends, and you all work for your mutual benefit, even in small ways, you cut the government out of a lot of the process.

[American Silver Eagle]

You’d probably like it!

[Gaffer]

You found it first; you go there....

[1FreeAmerican]

As business owners we can completely control our income by doing less business - this means less payroll, fewer expenses, etc. The people that lose out are my suppliers and my employees. How's that for some stimuli?

[American Silver Eagle]

I’ve already been there. I think you’d like it. They talk about survival stuff, buying guns, spam, gold, silver...

If not, no worries.

[blackie]

Now you’re talking!

Be Ever Vigilant!

[ottbmare]

OK, I’m a little slow when it comes to economics (which may be why I’m not in the top 20% like y’all), so bear with me. If you folks who do have some disposable income refuse to spend it to spite Obama, and the entire economy fails, how does this benefit anyone? You may be rid of Obama in 2012, but America will be in ruins. And if America is in ruins, I don’t think you or anyone else will be collecting an income that will enable you to continue your present affluent lifestyle.

If I’m seeing this wrong, please explain it to me.

[MattinNJ]

That is the one way to strangle the Leviathan. Simply shrug. I stopped going out to eat once a week with my family, I didn't put a new roof on this year as planned(it's not leaking-just a little worn down), and I am holding off on buying a new car which I could afford and reallywant. That's easily 50K I would have spent but I am not going to help these clowns.

I also minimized my the tax taking out of my paycheck and plan on filing an extension.

If every conservative did this, we would bring the socialists to their knees.

We would only cease and desist once our demands for the return of the Constitution and individual liberty was met.

I was looking into putting a website together like stangletheleviathan dot com or something and would appreciate any help from FReepers in putting the website and a list of demands together .

[Slings and Arrows]

if it’s not too personal, what sort of assets might those be, please? It’s high time I protected myself.