Do We Really Need to Shop To Stimulate the Economy?

As I read the Seattle Times Business section today (Seattle Times, August 4, 2013, D1), the first headline I saw was “Attention, Shoppers: U.S. Needs you to Spend”. I found myself reacting strongly to this headline and realized I needed to read the article not just the headline.  The writer, Jon Talton, provided a good overview of the various moves in our domestic economy from the perspective of the continued slow growth due to a slowdown in consumer spending.  As I read to the end of the article I realized that he was struggling with many of the same issues I have questions about. We currently live in a consumer society where our purchases equal another person’s income. However, because of the huge inequalities that exists within our economy in many areas, not just consumption, growth as we used to understand it no longer makes sense.

Adam Smith set for the theory that demand sets the price, but in our society, we are creating demand through our advertising. New creativity in products that reduce consumption of natural resources or respond in a better way to meet a need that former technologies do not address may be very good for stimulating growth.  However, have I acquired a want because an advertisement looks good? 

In our economy we today we talk about needing spending to stimulate growth.  At the same time, we need to reduce debt. In addition, we know that if we could increase our savings rate, we could ease the stress on getting into further debt.  How can we do these three things at the same time?

Choices are important today. Some spending choices such as the buying food are essential and also require that food be produced.  Are we willing to pay more for our food, lights and housing, the essentials, than we are for things that are not essential?  Am I willing to change my life style in a way where the choices I make support an economy that is healthy for the human family and earth? I do not find this an easy task.  Each day I need to make choices and sometimes it is easier just to “do what is convenient.” 

As a nation, we ask congress to look at a budget that has savings, but also provides some revenue growth in order to reduce debt. We hear about immigration reform being an economic stimulus. At the same time, we want to cut support for services that allow people stay about of the earning, spending and saving society. A responsible budget is not one that makes across the board cuts with no consideration of its relationship to people or economic growth. 

We all need to examine our own spending and ask our congress to make a responsible budget. We need to accept our responsibility to listen, challenge, and support one another to make choices for the common good of all.