Winter Break WK #2: ” Save Jobs. Buy Something”
December 23, 2008
By Steven Malanga
An international group holds an event every holiday season called Buy Nothing Day, in which members protest our consumer culture by urging shoppers to restrain for at least one day from shopping. This year, not surprisingly, the event was reportedly a smashing success. Although I imagine many shoppers took part unwillingly, having lost their jobs or witnessed the value of their assets plummet, others said they were buying nothing, or at least buying considerably less this year, in sympathy with those who were struggling.
“Even though we can afford to spend more, we’re not going to,” someone identified as Mary from Brenham, Texas told CNN. “It just doesn’t seem right to spend lots of money when so many are hurting.” Bart, the head of a nonprofit in Springfield, Missouri, told a local newspaper that with so many people struggling, “It just doesn’t feel right to go out and spend a bunch of money on Christmas gifts.” The sentiment seemed pretty much the same across the pond, where a columnist for the London Times observed that rich friends “have all cancelled their customary Christmas holidays. Sure, they could afford Tobago as usual, but this year it just doesn’t feel right.”
Not once during the dozens of stories I saw about Buy Nothing Day or about consumers’ general holiday abnegation did anyone, including the reporter or TV producer constructing these accounts, seem to consider that it might actually be counterproductive for those who can afford to spend as much or more this year on gifts to instead spend less. Indeed, many of these stories ran virtually side-by-side with gloomy reports of layoffs, retail bankruptcies, companies cutting wages and eliminating bonuses, and factories going on furloughs because of the difficult holiday shopping environment. Yet it is as if the two stories were virtually unconnected.
Why is it that in tough times it seems rational and even noble to deny oneself, even when doing so only spreads the pain? Much of the reason for this may be that we humans have been living in the modern, consumer-driven economy for just a few hundred years�”since the great leap forward of the Industrial Revolution, when technological advances greatly expanded humans’ productive capabilities, vastly increasing standards of living in the process. By contrast, we spent a hundred thousand years or so living in tribes and roving bands where existence was day-to-day and tribal members shared resources to survive. We’re still not always comfortable reconciling the consumerism that’s at the center of our economy since the Industrial Revolution with the egalitarianism of what anthropologists call our deep history.
That’s why during times of economic stress some of us still preach sacrifice and restraint because it appears unseemly to have and consume too much when others are going wanting. Doing otherwise is politically unacceptable. When President Bush, for instance, urged Americans after 9-11 to shop enthusiastically during the 2001 holiday season, critics derided him for emphasizing something as frivolous as consumerism at a time of deep national pain and introspection.
Maybe it’s best that our leaders simply lead by example rather than words. Our President-elect, for instance, is now vacationing with his family in Hawaii after spending nearly two years running a grueling campaign for office. With a hefty bank account thanks to two-best selling books, President-elect Obama isn’t about to deny his family or himself the way those British rich folks are denying themselves their Tobago vacations this year, and our citizens of Hawaii are no doubt grateful to him for his business.
Still, our press and cultural commentators have it in for anyone who spends lavishly during times like this, even if it is a business investing generously in its future. At Major League Baseball’s winter meetings in early December, a number of teams made whopping contract offers to star players who were free agents. The press subsequently roasted these free-spending teams for heaping riches on guys whose only contribution to our society is to hit a fastball at 95 miles per hour, or throw one that fast. What a strange reaction to businesses that are investing to improve their product during a downturn?”a perfectly sensible strategy if you have money to spend, talent is available and your competitors are being cautious.
The winter baseball meetings were Christmas come early for a few players, and one hopes they celebrated appropriately by spending some of their new-found wealth and in the process boosting the economy. As one of the 20th Century’s most notable non-believers, Ayn Rand, observed about Christmas, “The gift buying…stimulates an outpouring of ingenuity in the creation of products devoted to a single purpose: to give men pleasure.”
And to give them jobs. There’s still time, though just a little, to renounce your vow of moderation and buy liberally. It’s the least you can do for your fellow man.
Page Printed from: http://www.realclearmarkets.com/articles/2008/12/save_jobs_buy_something.html at December 23, 2008 – 10:59:35 AM CST
When the banks failed during the Great Depression, people took to burying their money. The government took to attempting to stimulate the economy through projects. The government effectively dumped money into those projects in an effort to recover the economy. I think the notion was spend, spend to save the economy. I understand that those who can afford to spend more are restraining because it does not feel right. I know I would not like to have large festivities while others barely have festivities. But, I also understand that by not spending the amount they can afford to or usually do, they are certainly not helping the economic situation. I recently caught a story on the news about a waitress, who depends on tips, that has fewer and fewer customers coming in. She needs people to come and spend so that she can turn around and spend also. In the case of store employees who have an hourly wage, they get laid off when the store does not generate enough revenue. So, by not spending, the turnaround of spending does not occur.
Connection: Project Grants. During the Great Depression, the projects that were used to stimulate the economy were funded by the federal government through project grants. Project grants are given for specific purposes and are awarded on the basis of the merits of applications.
Although the Buy Nothing Day would seem sensible in earlier years, this year it just doesn’t sound like such a good idea. When our economy is already close to or possibly in a recession, why would it be a good idea to have a whole day to not spend anything? The stock market is falling, companies are closing, and jobs are being lost. I can understand why some people would feel bad for spending a lot of money when so many others can’t. However, there is always going to be someone who is unable to spend as much as you, the number just happens to have risen since last December. Right now would probably be the best time to be spending a lot of money. It hasn’t seemed to bother Americans any other time before now. I don’t think that people really understand that the reason we’re going into a recession is because we’re not spending as much as we used to. If everyone would just spend money as usual, we’d be out of this mess and we wouldn’t have to worry. Ever since the word recession came out, people decided that they needed to save their money, just in case we had another depression, making people lose their jobs. The more jobs lost, the less the economy is going to move because no one will have the money to buy anything. Sometimes I wonder what the world is coming to when we have to rely on money for everything. It just doesn’t seem right.
Connection: We have talked in class about the economy and the fact that we may be in a recession, although it is impossible to already tell. I know it has been mentioned that if the public would spend more, the so-called recession would be over. The Buy Nothing Day doesn’t seem to work when, in order to get the economy going again, Americans need to spend money.
As we know, President George W. Bush declared that we were in a recession. During this holiday season it showed. As most people probably noticed, we shopping in the stores the shelves were practically empty and there were multitudes of people wondering around trying to pick up Christmas gifts out of the limited selection. Stores, faced with the declining economy were forced to take measures that resulted in shelves not being restocked. Who could blame them, now is not the best time to be spending more than you have and so therefore they didn’t take the risk.
I also wonder why in a time of economic hurt, why people would be a part of Buy Nothing Day. This only hurts our nation more if the people who have the money choose not to spend it. But for me, I am all for saving money and not spending it until I chose to do so.
Connection: A recession, at least in the past, has been a time of temporary decline in the economy. We see that especially now as the auto industries are forced to design electric and hybrid cars or bust. If the Big Three bust, more jobs will be lost and the nation will go into a further recession.
Do you have any idea what would happen if we “cancelled” christmas because of this economic down fall? People would go insane. Some Americans don’t watch the news or follow the issues because they are scared, and honestly who isn’t? Are millions of people going to be laid off tomorrow? Is the auto industry toast? There is a neverending list of possibilities, and if we were to warn people and tell about people who aren’t celebrating their respective holidays because of the economy, people would flip. Try explaining to a child why they didn’t get anything for christmas and ruin their beliefs in santa or whatever they believe in. Yes, we are in a time of trouble, no we should not throw in a white flag and give this battle up. Saving money is always a good idea, but do we all need to save every penny we get and just say we’ve been defeated? No. That is the American mentality though, to spend spend spend until our pockets are empty and we shouldn’t stop doing it now. Who knows what will happen to our economy in the future but for the present, changing the way we live our lives will just cause panic. Buy Nothing Day seems unrealistic and in some cases just wrong.
Connection: The American people being gullable. We can sit here all day long watching the news and reading up on the latest tragedy and the sad thing is that we listen to and believe everything that the news tells us because they “are right”. Some of us are even going to stop spending money on things like christmas to save a buck or two for a rainy day. Come on.
Black Friday, a day in which most companies hope to actually turn a profit before a new year. If we were to stop black Friday what would happen to all those businesses who are counting on it? Many of them would probably cease to exist. If people could wise up a little bit and see that by not spending money, they are indeed ruining their own economic future. Yes I agree with Bart when he says, “It just doesn’t feel right to go out and spend a bunch of money on Christmas gifts.” Ya ya ya Bart, at this point it isn’t about what feels right, it’s about what is best for the country. Great nations aren’t built when nobody is willing to build them, they are built by devotion and willingness to take some chances. Maybe one person spending a little extra on Christmas this year wont show a financial return, but if hundreds and thousands of people take a chance and spend their money, we may just have an economic turn-around. The fact of the matter is, we can’t afford to be stupid and mislead by reporters and news stations right now, but we can afford to get out there and lay down some money towards something!
CONNECTION:
We, the American people are being mislead. The media can twist and turn things around so much that you wont know what hit you. “If it bleeds, it leads.” That is a perfect example. Instead of the media telling us there are good chances to turn the economy around if we just spend some money, they tell us that we should be careful because the economy can crash at anytime.
In my opinion it would be smarter for the upper class elite to spend what they are able to because it will help to make up the loss in sales to the lower class. The ‘recession’ is having the greatest impact on the lower class because it is the jobs that anyone can do, the factory jobs, the retail jobs, the manufacturing jobs, that are getting cut in towns throughout the country. I know first hand how these cuts are affecting families, my dad has been working at the same steel manufacturing shop for 15 years and it is currently facing closing its doors due to a lack of business. They have been laying off small groups in phases because there is not the revenue to pay wages. They have been able to rescue the last group by an ingenious idea from one of the manufacturers, the snow rake for removing the snow from roofs. They produced one to do the roof of the business and decided that it worked so well they would produce a small number and sell them on craigslist. It has been such a hit that it has been on the news everyday since Tuesday and they have been working open to close to keep up with demand. People buying these products is what has saved the business and I think that this cycle needs to maintain itself so that the companies nationwide can stay above water.
Connection: Recession and the buying cycle that needs to be maintained despite the hard times throughout the nation. People need to keep putting money into the economy so that it can try to balance itself.
To me, Buy Nothing Day seems like a good idea. People get to calmly protest the American stereotype of “consumers.” It some ways, this could be a small act put forth in order to satisfy those who feel strongly about not spending loads of money. However, with what is going on this year economy wise, maybe skipping a year of this Buy Nothing Day would be beneficial. Although some people may think that it doesn’t feel right spending money when others are hurting, this not spending for a day could actually hurt people in the long run. Just think about the domino effect of shoppers not going out: employees show up to work, not a lot of people show up o buy, so workers are sent home early. Thus, there pay checks are lower and the money that they were counting on does not show up. Now obviously this is an exaggerated hypothetical, but the effects of not shopping could possible hurt many workers and businesses.
I do believe that our country is WAY to obsessed with celebrities and athletes and consequently they get paid WAY to much. How come people who do virtually nothing for a living get paid millions of dollars while people who are actually trying to change the world, such as teachers, are barely making it? I feel as if our country has begun to not care for actual human beings, but instead constantly worried about money and who’s the most powerful.
Connection:
The recession that our country is right now is obviously affecting all walks of life. People with not enough money are worried about how they are going to make it, while people with money are worried about not making other’s feel bad by spending money. Our country needs to do something in order to fix this mess.
I agree with the author. Though the sentiment of “Buy Nothing Day” is good, it is one of those ideas that, in a time like this, are better on paper than in reality. People will feel guilty that they are fortunate enough to spend more than others when in actuality, they are hurting others by their restraints. It is a vicious cycle. Consumers can’t buy from stores. The people who work in these stores obviously need customers; however, when the customers don’t shop, the workers are out of work, and they too join the mass. All this spirals downward.
I think that perhaps the public should be made aware that their good intentions, like Mary’s from Texas, are truly hurting others. The economy needs to be revived. I don’t know how they can be informed, but I think it must be done. It would, of course, be very difficult. Like the author stated, it is human nature to hoard and feel safe. History shows us that this is true. During the Great Depression, people withdrew their money and buried it, which caused thousands of banks to fail and further injure the nation. We can now observe a similar action – people restraining themselves from shopping though they can. So I think that this article was published. People need to know the consequences of their actions.
Connection: Class Discussion
AS we have discussed in class, saying that there is a recession may be harmful. People hear the word and immediately start restraining themselves and preparing for the worse, which may seem smart, but truly further harms the economy. As in this case, people saw that others were suffering, and so held back from shopping.
Ha, I thought this article was really enlightening and also a wee bit mind boggling. I for one am going to have to kind of rethink my own ideas of sympathy and personal sacrifice…when really I could have splurged and bought myself three extra boxes of chocolate! Woo hoo! I’m indulging myself, helping out the Hershey’s Chocolate Co., saving the fitness clubs because you all know where chocolate rests, employing a personal trainer because you all know girls like to look at guy’s muscles, and through all of my personal selfishness and indulgence I have saved the economy! This is something I could handle. Seriously, I have always been someone who was disgusted with how much professional athletes are paid, when all they do is wear cute little polo shirts, tattoo Tiger Woods on their arm, and swing around a golf club all day and hope the ball goes into the hole. But the light bulb is just turning on! Really they all should be anointed with oil and be crowned Economy Hero, because that guy will use his millions to buy a nice shiny car from Chrysler, bailing out the auto industry, buy one hundred polos and spanking clean shoes because you all know that golf makes you have b.o and stinky feet, saving the clothes factories and employing all those jobless Chinese seamstresses, and finally will splurge on a banquet at the finest hotel because he wants to impress his date..all in the name of saving the economy! Hmmm…this might have to be rethought just a bit, because then where would we be with all these fat, chocolate eating, polo wearing, sleezy, rich, golf playing, economy savers?
Connection: Media coverage. The media has painted a picture of utter depression and misery, condemning those who spend a penny, and celebrating those who save a penny when really we aren’t really in a depression and we wouldn’t even be in an economic crisis if Americans would just go ahead and splurge. After all it is the holidays.
I agree completely with the author on this subject. Sure we are in an economic recession but that doesn’t mean we have to clamp down on our finances and watch every penny we spend. That is how we go from a recession to a depression. How do we get out of a recession? Certainly not by celebrating “Buy Nothing Day.” This type of day is something that doesn’t need to be celebrated this year. To get out of a recession you have to stimulate the economy and you can’t just rely on government bailouts to do this. Everybody who can afford to spend money needs to spend money. This will help stimulate a company which will create jobs which will reduce unemployment. We live in a consumer society and we need to be consumers if the society is going to survive.
I don’t like the whole spend less because there are people in the US who can’t spend as much as you idea. Sure, we can do this people in the US but why not for the people in some other part of the world who don’t have much. Does this mean we only care about our fellow Americans? If this was the norm we would have hit a depression a long time ago. But it’s the media who is stirring up trouble. They pick up this spend less concept and suddenly every American is spending less. That is the wonderful influence of our media.
Connection: When we talked about the news of the recession being official in class Mr. Kautzman brought up a good point. If we want to keep the country out of a recession we need to go out and buy stuff. That is exactly what Americans need to do but I guess they want to celebrate “Spend Nothing Day” instead.
This article is kind of weird. I don’t know what I think about it. All it talks about is how people won’t be buying many gifts for Christmas. Seriously, come on. Christmas is not about material things!! If that is what your Christmas is based on, then I’m sorry. A little fact about me: I don’t get presents on Christmas because my mom believes that I get “presents” all throughout the year. I mean, sure I did when I was younger to be able to believe in Santa, but not anymore. People need to realize that Christmas is about sentimental things and just being happy. However, if more people knew that they need to spend money so that people can have jobs, I’m sure they would to support the economy. But in reality, most people do not keep up with that stuff.
Would it help if prices were lowered on everything so that people could buy more things? Or would that just disrupt the economy even more?
Our country is scared. No one knows where our money will go. Are people going to start putting money under their mattresses again because they can’t trust banks? Well, we will just have to see about that as time progresses.
CONNECTION: This article connects to the depression of the 1930’s. Our economy is fluctuating much more than usual, and it is not for the better. People are changing their ways just like they did during the depression. However, this little glitch in the system is not affecting our country as much as it did back then (to my knowledge.)
I understand why people with money are not spending it. They would be frowned upon by fellow Americans. Not to mention, it wouldn’t feel right to be doing what others can’t. However, I understand the article’s argument that these people need to spend their money. For an economy to stay strong there has to be money circulation. Someone has to spend. In this current condition most Americans don’t have any money for anything extra. Thus, although they may look bad for it, the rich should go out and spend. During the depression, fear caused everyone to withdraw their money from banks and stop spending money. If people, who can afford to buy goods that they don’t need, stop spending it will probably just spread fear and less and less people will buy. However, the problem is, how can you change people’s ways. I mean it would be hard to change the mindset someone has towarad a rich person who spends needlessly. I admit, I get jealous when some people have so much money to burn and others don’t. So, the people that could be stimulating the economy will probably continue to save their money when they could be spending or investing it.
Connection: In class we have talked about the Great Depression and touched on its causes. This article sort of parellels that discussion because we are headed into a depression. In class discussions we have also discussed the importance of spending to keep the economy going, as opposed to saving it all.
Never have truer words been spoken. Anyone with a job should realize that the only reason he’s getting a paycheck is because someone is consuming his product. If people become frugal, or they refuse to spend because of guilt, then that will only lead to more economic problems. I work at Yoke’s. I know that when people don’t come shopping at our store, we lose money. Now, when a company loses money, the people running it look for ways to downsize where ever they can in an attempt to cut spending. My job, then, is at jeopardy because, like millions of jobs out there, my job is relatively simple and could be performed by another person on top of the job they have already. The result? I’m laid off and have no money. That means that my family won’t get presents this year as I’m frantically juggling bills, groceries, and the search for a new job.
So think about it for a second. If you have the extra money, buy something. Do it for your fellow man. And if you’re one of those people that’s easily guilted by the sight of others’ struggles, good: go make a donation to a local charity or food bank. There are other ways to be aware of others’ needs than just hording your money. I know it sounds vaguely familiar, as if a certain economic disaster was caused by this sort of thing, but hey, it’s in the past right? Wrong. Capitalism only works when people spend. That’s just the truth of it. So get out there and buy presents, food, supplies, or just useless junk.
Connection: I know that Kautzman never fails to remind us in class that the only way to save our economy is to boost the confidence in it. When people are confident that we aren’t going to explode as our economy’s fuse lights, they tend to buy more things, and businesses, with all their money, hire more people. Then those people buy more things with their money, and businesses again grow. In the end, everyone’s happy. So shop at Yoke’s.
It is interesting that there is a group of people holds a Buy Nothing Day for every holiday, but it seems odd when so many people’s jobs are dependant on other people consuming their product. And to support this Buy Nothing Day when our economy is close to being in a recession is ridiculous. With things like companies failing and asking for bailouts, and the stock market plummeting resulting in the loss of many retirement funds, the people should be trying to figure out how to support the economy. If people don’t want to be seen spending large amounts of money on themselves they can still help the economy by purchasing gifts for those who do not have any money to spend on gifts. That people should be out spending money to help the economy recover should be broadcasted on the news rather than how more companies are asking for money and how stocks continue to drop. The media could also be persuaded to not go after the people who do spend money influencing the rest of the public. The increase of jobs being lost is also why the people need to pushed to spending more so that this is kept to a minimum and hopefully turned around soon. And I think that is great that our soon to be president is leading with example and has taken a vacation to Hawaii.
Connection: Our class has discussed the position the United States is in with its economy several times. If this decline is not reversed we could see another depression, so the people need to be encouraged to go out and spend money to reduce jobs being lost and stop the decline in the stock market.
I totally disagree. “Buy nothing day” is anything but counterproductive. Buying less is a lesson that Americans need to grasp, and hold on to, tightly. Consumerism is to blame for this economic downfall. American culture is very aggressive, and provokes unnecessary demands upon its people. Money has become a symbol of importance, and considering that our nation was founded upon protestant ideals, and that those ideals seem to still be relevant, America’s capitalist nature is actually immoral because the bible labels money as the root of all evil. Therefore, I think Americans should consider their own ideals, resort to the basics, and possibly redefine the American dream. Obviously, the current dream is unrealistic. We are experiencing an economic recession because people are spending money that they don’t have. The standards of our society have to become less ridiculous! Not only do our nation’s outrageous spending habits have a negative effect on the economy, it has an extremely negative effect on the environment (environment including all things natural: people, landscape, etc). Technology allows Americans to live a convenient lifestyle. We are WAY to comfortable, and unwilling to change. If the U.S. continues to on the current path, if we continue to spend mindlessly, we will see depression in our bank accounts, in our local stores, in the air we breathe, and we will feel it as the earth’s temperature continues to rise.
Connection: Capitalism. The United States of America has a free-market system which allows its people to spend and sell freely. Currently, our free-market system is out-of-control due to abuse. Capitalism can be healthy; however, if people spend money that they don’t have, capitalism is counterproductive and depressing.
In response to Hillary Susz, I would normally agree that “ ‘Buy nothing day’ is anything but counterproductive,” but in the current economic situation, it is probably not the best idea. “Therefore, I think Americans should consider their own ideals, resort to the basics, and possibly redefine the American dream.” I do not see the American dream being redesigned or redefined anytime soon. The American dream is impended in aspirations of most people. The current dream is not unrealistic. The ways in which it is sought are unrealistic. While consumerism is responsible for the economic downfall, consumerism will be what causes the country to recover from the economic downfall. I do agree that the American standards to need to be tweaked a little bit. The American culture does make unnecessary demands of its people, but the fact that the culture makes those demands makes them necessary in the eyes of the people. We are experiencing an economic recession because people have stopped spending the money they did not and do not have. “Money has become a symbol of importance, and considering that our nation was founded upon protestant ideals, and that those ideals seem to still be relevant, America’s capitalist nature is actually immoral because the bible labels money as the root of all evil.” I just really like that quote and her response as a whole because it makes me smile.
In response to Madelin Copus:
I’m sorry to hear of your dad’s situation and his steel business. The economy no doubt has many problems that need to be fixed to not only help your dad but everyone in the country. But one thing you said doesn’t quite make sense. You say, “In my opinion it would be smarter for the upper class elite to spend what they are able to because it will help to make up the loss in sales to the lower class.” That is nearly impossible. First off, the rich guys are not just going to start spending to get the economy going. They are just like the lower class in that they are trying to save their own money. The problem with economics is everyone is interested in their own money and not the nation as a whole. Also, most rich guys invest tons of money. Obviously most investments aren’t having great rates of return right now, but that doesn’t mean the rich dudes will just take all their money and spend it to “save the economy”. Most people don’t realize that one of the main problems in the economy is the overuse of credit. Most rich guys don’t use credit; they have cash. Anyway, just trying to make some points that the ideology of hoping the rich guys will spend more is just over the top. They are just like anyone else – they want to keep their own money.
In response to Hilary:
I agree with you for the most part. Americans certainly need to learn how to manage money. With our sense of entitlement we feel that we deserve to have whatever we want. We buy things that we can’t afford with credit cards, and buy houses that we can’t afford to make payments on. We feel that our government should solve all of our problems for us, but that simply is not the American way. Our nation thrives an the principal of social Darwinism wrong or right, it is why “elitists” are always our president, or the people with the most education make the most money. A lot of people have the attitude that it is the government’s responsibility to take care of them, and in the modern world it does. What happened? I am not saying the poor do not deserve aid, they do, but to say the least they should at least attempt to get a job in return, and a lot do. But some who feel it is their right to take money from hard working people and put no effort in return do not deserve to call themselves American. I do partially disagree; people do need to spend money. Not people who can’t afford it obviously, but those who have the means. If we slip into another depression it will have an ugly end. The last depression was solved by starting a world war.
In response to Hilary Susz,
I have to agree with you on some points and disagree on others. To start with, you said, “America’s capitalist nature is actually immoral because the bible labels money as the root of all evil.” Now, money by itself isn’t sinful or evil. It’s the way that money is spent by sinful people that is the problem. The same thing is true for a lot of other situations. Drinking beer or other alcoholic beverages, for instance, isn’t wrong. What is wrong is how people go and get drunk and do other bad things while they’re wasted. Same thing with cigarettes. I don’t believe they are evil. What is evil is the addiction…that leads to cancer and lung disease. So I wouldn’t say America’s capitalist nature is immoral, but sadly it is downgrading. That’s where I agree with you. The real reason for recessions and consequently depressions is that people buy what they can’t afford. Then they go into debt and blame everything else under the sun except for realizing their own fault. Thus, in my opinion, those who can afford to boost the economy go and spend a penny. But those you can’t by all that’s sacred stay home.
In response to Clarin: I agree. I think that the Buy Nothing Day is a good idea, a way to peacefully protest consumerism. I do not think that one day out of the entire year not buying anything is really going to hurt the economy, especially since it is already in the toilet. I never even knew that there was a Buy Nothing Day, so I could imagine that not many other people know about it either. Maybe they should advertise it or something and more people could participate, but I suppose that would be contradictory to this article since it is saying that Buy Nothing Day was actually a bad thing this year. I also think that celebrities are way overpaid. I mean, they get paid a lot because those industries make so much money, but it still doesn’t seem right that other people work as policemen protecting the public or teachers educating our nation’s youth and yet they make less than someone who plays baseball for their job. I don’t see how people who have money to spend think that they are being respectful or helpful by not spending their money; I thought that everyone understood that a recession is caused by people not buying things or spending their money, and if you understand that then you should know that spending your money can only help the economy as long as you don’t spend all of it.
In response to Bruce Graham:
If we want to keep the country out of a recession we need to go out and buy stuff. That is exactly what Americans need to do but I guess they want to celebrate “Spend Nothing Day” instead (Bruce). As I was reading your blog, I got to thinking a little less selfishly. Of course I would love people to go out and spend money in order to revive our failing economy, as long as I am not the one having to spend money. So really, we are relying on others, those who are on the wealthy end and ones willing to go into debt, to buy things they may not even need or can afford. What is one day out of the year to buy nothing? I really don’t think that because a few people (out of millions) spend nothing on one day; our economy will make or break. And going back to your statement (above), of course people don’t want a recession, but they also don’t buy something on a buy nothing day because they want it to get worse. One day out of 365, I think the economy will live through such a day.
In response to Hillary: I completely disagree with you. While America may be a consumer nation that is what makes us successful and what allows the country to continue to function as it does. People have to spend so that other people can make money and then in turn make other people able to pay their bills and buy other things, luxury items as well as necessities like food and clothing. People NEED to spend to keep the economy afloat. To repair the damage we have done we need to spend. Government bailouts are not the way to repair the economy. It will only create more problems because of raised taxes which will take an even greater toll on the middle and lower classes. An example demonstrating the importance of spending is small boutiques throughout the country slashing prices to levels that eliminate the profit margin but they have to do this because they need the sales to come in so that they can move stock and continue to have revenue coming in to pay bills and salaries. I think that businesses having to resort to slashing prices that much shows what a sad state of affairs our country is in and demonstrates how vital spending is to the American economy.
In response to Hillary:
While I agree that a “Buy Nothing Day” would be good in principle, we cannot afford to have one given the current status of the economy. If we have a “Buy Nothing Day”, that might freak out the companies enough to unnecessarily downsize stores. Americans really do need to stop spending what they don’t have, but in times of economic crisis, those that can afford to spend money, should spend at least some of it. This mentality will probably be hard for people to grasp because they think “Recession! Don’t spend anything more than necessary!” For those with very low incomes, that is probably the best thing, but for those who are making moderately good incomes or better and can afford to spend things, it actually would be a good idea to do. However, it seems contradictory, in a sense, which is why people in a recession might think that a “Buy Nothing Day” would be a good thing given the current problems. I would say that an “Everybody Buy Something Day” would be better for the economy, in terms of monetary and consumer morale, than the “Buy Nothing Day”. The profits turned on that day could be a major turning point for the economy. I do agree, though, that if Americans should learn the lesson of responsible spending. Perhaps a “Buy Nothing Day” would be better for a time of prosperity.
In response to Alexa Erickson:
I do not think that people keeping their money safe is that much of a bad thing. Also, I am pretty sure that once the stock market crashes and the banks had all their money in stocks, which caused the banks to become bankrupt. People keeping their money safe from non-protected institutions, such as the banks at that time, was probably a smart decision. I do not think that spending all the money you have will directly bring our economy up; it would probably boost China’s economy if anything.
What we should do is help the poor people of America directly. Either give the poor strong tax breaks or people could be charitable and help their fellow man out, because if anything, the rich caused this. Typically, people who run a business are out for money, and they will try to maximize their earnings, even in unethical ways. Many America-based businesses have outsourced to China and other countries with cheap labor, just to maximize their profits. They do not care about the common man who has lost their job, they do not care about their workers making a sub-par wage, and they only care about earning money.
Also, the baseball example displayed in this article is a joke. The teams that are spending more and more money on free agents are the big market teams that are basically monopolizing the industry. All the small market teams will then get less money, since they don’t have their star players and the people in their markets are not having extra spending money.