Forget Islamo-fascists or secular humanists: the biggest threat to America is cheapskates, regular Americans who don't buy enough stuff. Or so one might think from all the talk from the President and Congress about needing a stimulus package -- that's the modern translation of "bread and circuses" -- to stave off a recession. The U.S. economy grew 3.8% in the second quarter of 2007 and 4.9% in the third quarter, people bought more computers and cars and who knows what else, but apparently that's not enough. President Bush, who wasn't willing to let funding for children's health care increase any more than $5 billion, wants to pour $150 billion out of government coffers to encourage shopping.
Now Mrs. Madville Times and I certainly won't burn our $1600 rebate check from Uncle Sam in protest. But when we think about what we would do with the money, we find our priorities leaning toward some distinctly unpatriotic uses. I'd love to use the rebate to pay down our medical debt. Otherwise, it would be nice to just sock the money away and add a little cushion to our pretty lean budget.
We're not the only folks with such unpatriotic thoughts: some of the economists in the street -- actually, folks at the mall -- KELO interviews say they'd put a rebate check in the bank as well for future expenses, like a wedding or kids' college tuition.
Such anti-American thinking! If Congress and the President enact a tax rebate, they'll be expecting us to let those handouts burn holes in our pockets. Pay down your credit card debt? Knock a couple payments off your mortgage? Save the money? Blasphemy! If we don't buy more iPods and TVs and plastic junk from China, we're not helping the economy!
It seems the whole economy is based on our indulging in a constant orgy of ever increasing spending. Responsible, conservative financial behavior -- the frugality that got Grandma and Grandpa through the Depression and paid for World War II -- would ruin the nation... or at least the wealthy corporations that depend on our mindless overconsumption.
Is that why no one talks about energy conservation? Is that why Bob Ellis speaks so insultingly of the poor? If everyone tightened their belts and started putting money in the bank, the U.S. economy would collapse. Responsible -- dare I say moral -- behavior would lead to serious economic harms. That suggests something profoundly wrong in the values underpinning our economic system.
The dependence of our economy on overconsumption is a moral failing more destructive than any of the faux family values that Bill Napoli or Jim Dobson preach. This is why I'm so much more concerned about economic issues than abortion, gay marriage, or any of those popular social issues. We need to figure out how to get everyone off the treadmill of "buy, buy, buy!" and put our economy on a practically sustainable and morally defensible foundation.
Just like any bad habit, it has to be replaced with another habit to truely be effective. So what should Americans spend their money on? We can't just say "Save it", because that only postpones the question; eventually the money will be spent. We can't say "Invest it", because again it postpones the question (plus, if nobody is buying new cars, my stock in Ford is worthless).
ReplyDeleteWhat should we be spending money on?
And what of the jobs lost? Where will those people work?
I don't know if there is a solution to the problem, short of joining the Village or transporting myself to the Next Generation.
I am of the mind to think that our economy is setup to keep the rich people rich, getting the money to trickle up.
Wait a tick, if overconsumption is immoral, then is investing money (which depends on overconsumption) immoral?
When are we going to start that intentional community?
I know what will boost consumer spending.. lower gas prices! ! ! ! Maybe Congress should uphold their promises of doing something about that and then everything else will fall into place.
ReplyDeleteAre we repeating the early 1980's when inflation went crazy, interest rates jumped to 18%, gold rose to $850 an ounce, silver moved up to $56 an ounce and farm land plummeted in value? Fuel prices jumped to $1.39 a gallon back then.
ReplyDeleteWith the savings rate among consumers in negative territory, and less than 5% of consumers having no more than the equity in their home for retirement, I don't see the rationale of giving people some of our own money to go out and spend it. It sends the wrong long-term message.
Fuel prices, grocery prices, utility costs climbing...Those are what is driving inflation and cutting consumer's spendable income. The average family is spending $300 a month more. That's $3600 a year not being spent on dining out, consumables, clothing, etc., per household.
Trickle down economics worked in Reagan's era, but probably not this time. Cut our basic monthly expenses for fuel, food and utilities and money will trickle back into the economy.
Joe, the intentional community starts as soon as you get out of the service and we all have saved up enough money to buy up land around here. Put that rebate check in the bank!
ReplyDeleteWhat happens to my precious land wen Madison let's me "Discover the Unexpected" by eminent domaining my nice lakeside propert in support of a marina?
ReplyDeleteWell, probably not going to happen. Eminent domain just unnerves me so much, when I think about how private property was a keystone idea for our nation forming...
That being said, I look forward to putting some roots down, up there.