Guilty as Charged
Today President-elect Obama's speech was on while I was waiting for Kellen at the orthodontist. I will confess to not listening closely, as I was distracted by other things. I probably should find it online to give it a closer listen, but what I caught was what I expected; a lot of deficit spending.
This isn't a political blog, and I don't intend it to be. I'll just say that I do like the idea of people working for the tax payer money they get, and I like some of work project ideas mentioned. An extra $1000 in my extremely lean budget sure sounds nice right about now. I just wonder about the efficiency of us the government to create work, and how more deficit spending can be a long term fix.
What really caught my attention was one of the commentators afterward. I did not catch who this was and really only heard one thing he said. Basically he said that Americans are only buying what they need right now, and that they need to start spending to get this economy going. It is not a new statement, but every time I hear it, my stomach turns.
I understand the concept. When we don't spend stores can't stay open. It all trickles down from there to shipping companies, middle men and manufactures. I get that. Maybe if they would state that Americans who have lots of money in the bank need to spend it, I could digest it a little better. I'd rather hear something like Americans who have lots of money in the bank need to invest it is worthwhile causes and businesses. Instead we are told to spend, spend, spend, to keep our culture of consumerism alive.
I am guilty as charged. I am only buying what I need. Partly because that is all I have to spend right now, but even if I get a nice fat check financed by the American tax payers, I still will only be buying what I need. I will be using that money to pay off debt, and if I buy anything, it will be things to help provide for our needs, like garden items.
No one likes to suffer. No one likes hard times, but those are the times that we learn and grow. Most of all, those are the times when we change. Is a system that depends on the acculumation f stuff regardless of our bank balance, really what we need? Do we really need to figure out how to maintain the status quo, or do we need to figure out how to change it?
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frugal thoughts
9 comments:
This is such an excellent point! While I get it that consumer spending makes the economy go, too much of the same mindset gets people into trouble. There is a balance somewhere, and hopefully we can find it.
Good point.
You know though,, One of the Christmas presents I received from C's family was a little mad money. It's still in my wallet. I've TRIED to spend it. There's nothing out there to buy! It's CRAP. I'd love to have some sweet new stuff,, if I could find anything worth spending it on.
American's need to wake up. You can not rely on the government to make a strong economy or rely on the government to make sound fiscal decisions. How many trillions of dollars is the government in the red? The problem with the cuurent economy started developing many many years ago with the introduction of the credit card. With the introduction of the credit card it has been to easy for consumers to have it all, while only paying $50 dollars a month for it. Consumers have been conditioned to believe that they must have right now or this deal is to good to pass up and charge on a credit card. Just think about all the extra money a person could have if you didn't charge anything. I believe that this "recession" we are in is good for the country as a whole. It has forced people to look at their spending habits. The housing market failure is due to the combination of greed from consumers, banks, and mortage brokers.
Apologies for the typos. I thought I had proof read! Hate to change it now for those who are read on feeds.
Maggie
Yes a balance is needed. Maybe by spending on productive or practical things and not just spending for spendings sake.
Crystal,
When I first read your comment I though gee I could find lots of things to spend it on. Then when I started listing they were all practical things. I guess that isn't what "mad" money is all about. I'd probably use mine for a nice dinner out! :)
Jake,
Lord knows I personally would be in a much better position if there were no such thing as credit cards.
Great blog! I just stumbled across it and wasted no time linking to it. (I'm not buttering you up to link to me. Really, no reciprocation necessary.) Thanks.
great post!
What you are discussing is an old economic theory known as "The Paradox of Thrift" .. if everybody is frugal then nobody will have anything. Its an age old dilemma.
One solution would be for many of us to "invest" in lots and lots of basic needs items (soap, canned goods, lamp oil etc) that will prove useful in a time of economic collapse... The resulting surge in spending will also bolster the economy and make such a calamity less likely. In other words stop frivolous purchases but make purposeful ones. And most of that kind of stuff is still American made! Win-win-win!
Found your blog though a Google search on apple canning... you may like the "Granny Miller" blog too. I will visit again... thanks!
Annon.
Ah that theory name does some familiar. Once a long time ago I was an Economics major. Maybe the principles have stuck with me if not that actual terms! :)
Thanks for stopping by. I loved your brand name story!
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