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.
