Intrinsic spending
Large consumer spending by individual shoppers is different from investments made for productive or creative purposes, although the scale of money involved in these two examples are not comparable. So the discussion should be narrowed down to counting the nature of items on which relatively large amounts of money is being spent.
So, if a shopper is spending large amounts of money on good books, educational tools, health development or instruments for creative hobbies, then they should not be judged. On the other hand, those who spent large amounts on food, clothing, cosmetics, and accessories, I think should be judged. I agree that consumption of these commodities creates job opportunities but they don’t serve the larger goal of human pursuit in the long run, because it is tantamount to generating wealth for the sake of it without a sense of purpose.
From Mr Mohammad Sageer
UAE
Without effect
If they can afford to shop without sacrificing their most needed things, then there is no need for criticism. The bad side of spending huge amounts of money is when it affects the budget of the family. Things like the education of children, food and all the basic needs should not see an effect.
From Ms H. Jeanette
Dubai
No wasting
When one shops a lot, they’re either hoarding stuff at home or wasting material goods. So, as long as they’re giving away to charity what they no longer want, how much they spend shouldn’t matter. I think if they are charitable, they are being nice to their economy and society as well.
From Ms Haifa Mohammad
UAE
Expenditures versus earnings
It is important for a mature economy to encourage people to spend more money. The costliest of the cities are the ones with heavy inflation and high paid people. So, the crux of the situation is every government or country wants to strike a balance between what is earned and what is spent.
From Dr Khaja Mohtesham Al Deen
UAE
Buy assets
There are two aspects to it: one is the economy at a macro level and the other is personal financial discipline at a micro level.
At a macroeconomic level, spending that leads to job creation is done by central and state governments in general infrastructure. Examples of this would be railways, public work departments and growth in the manufacturing sectors.
If people spend their money on social benefits, like medical insurance, this type of spending may lead to improvement in the economy and can create employment opportunities, but not always.
However, when it comes to personal finances, one has to build assets to create wealth. Assets include real estate, gold, shares and long-term investments. Spending money on these, even in small amounts, can lead to wealth creation that grows over a long period of time. Spending on non-assets like shopping, food, phones and luxury items does not create any assets for the individuals.
In fact, in times of recessions and downfalls, people with sensible savings and cheap spending are the ones who can ‘ride out the bad weather’ better.
Shopping, per se, is not bad or we can pass judgements. The issue is what one does with it and what one spends it on.
From Mr Ghanshyam Vasudeo Vyas
UAE
Traditional wisdom
At a macro level, spending is good as long as there is a manufacturing sector in the country in question and the spending comes from their own sources. If the spending is funded by loans or credit cards and the borrowing is beyond an individual’s capacity to repay, there are bound to be defaults that will balloon into bigger problems and result in big spending backfiring on the economy.
At a micro level, that is at an individual level, indiscriminate spending could affect a person’s personal finance in the long run. So, it is back to traditional wisdom: spend on essentials, do not splash out on non-essentials, and savings are as important as spending.
From Mr Seddiqi
UAE
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