I certainly don’t want to open up old wounds but with unemployment reaching double digits in many states and projected to climb higher over the next few months I think it is imperative to revisit the “spend less than you earn” vs “make more than you spend” debate.

How many people out there wish they had more money right now? How many people wish they had alternative streams of income? How many people wish they were savvy capitalists right now?    The really big question right now is who’s better off, a frugalist who just lost his/her job or a capitalist that just lost his/her job?

I don’t need to ask the question, “How many people have embraced frugalism?” because I know full well that almost everybody has had various reduction in expenditures over the past year. I personally cut back on many expenses but with price deflation hitting grocery stores, restaurants, autos, houses, and pretty much everything else it isn’t exactly difficult to figure out how to be frugal.    Heck, you don’t even need to be willingly trying to be frugal because the price of almost everything is dropping like crazy.  The economic system is forcing frugalism on everyone but what’s forcing capitalism on anyone?

Let’s review my original premise in the frugalism vs. capitalism debate:

A frugalist will spend his time searching the web, newspaper, and speaking with his friends to find that next great bargain basement deal.

A capitalist will spend his time searching the web, newspaper, and speaking with his friends to find that next great money making opportunity.

Is it really important right now to find the best price of cable television by searching the web, newspapers, and friends or are you simply canceling the cable TV?

Can you honestly tell me that you’d rather spend the next 5 hours earning MORE money or would you rather spend the next 5 hours finding out which grocery store in town has the best prices on eggs? With employers cutting jobs and hours it seems much more advantageous to earn a few extra bucks than waste time searching for deals.

I have to admit, I love booms and busts because it’s the best time to put theory to the test. Across America, people are literally being forced to spend less than they earn as banks cut bank on lending and credit and “frugalism” doesn’t appear to be keeping up.