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Low Spending by Wealthy Weakens Economy

Guest Blog by Jeannine Aversa • The Associated Press • August 2, 2010

WASHINGTON – Wealthy Americans aren’t spending so freely anymore. And the rest of us are feeling the squeeze.

The question is whether the rich will cut back so much as to tip the economy back into recession – or if they will spend at least enough to sustain the recovery.

The answer may not be clear for months. But their cutbacks help explain why the rebound could be stalling. The economy grew at just a 2.4 percent rate in the April-June quarter, the government said Friday, much slower than the 3.7 percent rate for the first quarter.

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Canning the Treasures From Your Victory Garden

This weekend I stood in my pantry and did a quick survey of my dwindling inventory of canned vegetables and fruit and dried herbs from the last few years. With my spending pattern being more discriminating, I already have planned my garden for this year – with better use of space, seasons, and what I enjoy the most.

Victory gardens became popular during the first and second World Wars in the backyards of homes in the US, Canada, England and Germany. Because of rationing, victory gardens enabled families to stretch their spending power and have more to eat. This became the foundation for the home gardening boom that has continued over the decades.

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