Monday, Jun 30, 2008
How does being thrifty help a debt-based economy?
Belfast Telegraph: Viewpoint: Thrift needed to ride out economic slump
"It revealed that 42% of people here are spending more than they are earning. All pleas for people to tighten their belts in the current straitened economic climate are apparently falling on deaf ears."
This to me sums up the conflict/joke/lie at the heart of our economy - do they really want us to be thrifty when curbing consumer spending leads to a recession? What happens if we become a nation of savers? Even if we 'spend within our means', is that enough for 'sufficient' economic growth?
Posted by shipbuilder @ 01:04 PM (432 views) Add Comment
4 Comments
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1. hpwatcher said...
The recession or slump, or whatever you want to call it, will bring with it, increased crime, more muggins, more burglaries and a multitude of other sins......As people are forced to use other means to support their celebrity lifestyles.
2. stillthinking said...
@shipbuilder. Isn't what you say the whole point ? That a debt based monetary system is a disaster. We can see random transfers of wealth now, not to the deserving or poor, just to hold things together. The UK can't spend, and we can't not spend. => stuffed.
3. plato said...
shipbuilder said :
"This to me sums up the conflict/joke/lie at the heart of our economy - do they really want us to be thrifty when curbing consumer spending leads to a recession? What happens if we become a nation of savers? Even if we 'spend within our means', is that enough for 'sufficient' economic growth?"
It would be if we produced something material, but that requires manufacturing. As it is now, it is all a numbers game and the dealers always win. Your ethics are right and you highlight a contradiction that is not widely realised as a result of being educated to only want to see bigger numbers.How impressive it is to talk about 'billions' except of course when we are losing them.
4. it_is_going_with_a_bang said...
Thrift. Thats something nobody in business wants to hear. i.e. spend less.
If this country turned into a country of savers half our finance industry would disappear.
Could you imagine it?
Whilst it makes perfect sense - it would be a disaster for a country 'run' on finance.