Anya Kamenetz, a Qvisory blogger, posted a paragraph on her personal blog pulled from a recent New York Times opinion piece that caught my attention.
What do they want from us, anyway? Without consumers to lead the charge, an economic recovery will be hard to achieve. And yet everyone agrees that we need to start saving more. So should I buy that coffee maker to stimulate the economy? Or should I save the money in order to “grow” the economy and provide for my own old age? I can’t do both.
As the I watch the Dow Jones go up and then further down again, hovering just above 8,000 points, learn that the number of people applying for unemployment benefits hit a 16-year high, and that Ford/GM/Chrysler are trying to convince Congress to fork over billions to prevent bankruptcy, I can't help but think twice before I open my wallet and buy things on my wish list. Many of those items could be bought at Circuit City, but they are starting to close their doors.
Saving isn't necessarily good for the economy, and Senate Majority Leader Reid is urging Congress to Pass a New Stimulus Package to put more money in our pockets, assuming that consumers will buy more goodies. Oh, but maybe we are consumers no longer. Maybe, we’re just citizen savers. Funny about Money pokes fun at the idea that frugal spenders are bringing the economy down and writes:
So it is that seedy characters like you and me, eccentrics who subscribe to the wacky theory that we should spend no more than we earn, refrain from buying every piece of junk set under our noses, and maybe even put some of what we earn into savings, are responsible for bringing this country to the brink of depression.
Those who save more than they spend should not be held responsible for the economic collapse. I can't tell you whether or not to buy that coffee maker to stimulate the economy; this is an individual decision. As for me, I recently started roasting my coffee at home: better coffee and costs less. Saving more and spending less is what’s on my agenda. In my house, the heater is off and the jackets are on. Will that hurt the overall economy? Or will we all benefit from a realigning of our values around saving and consumption? That question may be more for the economists and historians.
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