Are we really in for a bad time? Or will the economy steady itself (with a little help) and get back to "normal"? The fact is that nobody knows, so it makes frugal sense to be sure we're prepared.
It's always wise to get our financial houses in order and now even more so. Pretend that you woke up
this morning and were without a job. Think about the things you wish you'd done to prepare for it, then do those things now.
Recessions are not caused by people who don't spend enough money. They're not caused by people who have savings accounts and do careful shopping. They're not caused by being frugal. They're caused by people who don't know when to quit spending. They're caused by people who are so far in debt to the credit card company, to the bank, to the store on the corner, that they're living hand to mouth, and just making payments.
Advertisers pour money into advertising to people like that; the people respond by buying what they can't afford. Sooner or later, it happens. When those people can no longer buy beyond their means,
and can't make those payments any longer because of other hidden and not so hidden factors in the economy, the businesses who have catered to them suffer.
When the accounts due aren't paid and the people aren't buying, those businesses don't have enough cash or credit to pay for more advertising or inventory and so they lay off workers to try to make up the difference. Those workers can't pay their bills or buy more goods... and the merry go round
It's perverted logic to say that if we only go deeper in debt, things will get better. Spending money you don't have will catch up with you, sooner or later, and it doesn't matter who you are.
My frugal friends, don't let anyone fool you, and don't let anyone make you feel guilty. Frugal rules.