Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts

Saturday, February 7, 2009

Durability

I realized after the last post that I hadn't really finished at a place I was satisfied with. I was trying to say that I'm both frustrated with tired and backwards thinking regarding consumerism, and hopeful that a sea change is occurring in how we move forward. It seems like common sense to me that the foundation of our suddenly collapsing economy was built on sand. Steady growth fed by credit and consumerism worked for 50 years, but was not sustainable indefinitely. In Deep Economy, Bill McKibben explains why when he points out that economic growth is bumping up against its limits because of climate change and peak oil (which supplies both the main ingredient as well as the chief source of power in most manufacturing.) He points out three central challenges to the belief that the economy must continue to expand in order to remain healthy.

First, there's now plenty of data to show that - despite what business leaders and official say - growth is producing more inequality than prosperity. A very few have been getting very wealthy, while the majority have seen their incomes fall (when adjusted for inflation.)

Second, the energy resources simply don't exist to support the current rates of growth.

Third, growth and "prosperity" is not making us happier. To the contrary, nearly every study measuring general life satisfaction shows otherwise.

So if the growth model is broken, what are we left with?

I'm with McKibben in believing that what we want and need is community. That word is vague enough that there's a danger of it sounding Utopian. What I mean is that we must learn to see buying and spending as the relationship commitments they are. All spending is a kind of investment. If I buy a meal at McDonalds, I have made a small investment in that company; I have cast a vote in support of how they raise and slaughter meat, prepare the meal, take care of their employees, and dispose of their waste - all of it. Of course, If I choose instead to spend my money at The Country Cat, the meal will almost certainly cost me more money. But I will have invested in a local business that I know prepares meals from animals and crops raised locally and sustainably. I can be confident my money is an investment in the livelihood of people I know who are part of my local community and who are making a living wage. As McKibben says, this type of spending will yield less stuff but richer relationships. He calls this "The Durable Future."

What do you think? I'm really curious to hear how the current economy is affecting people, and how others are dealing with the tension between cutting back and trying to support local businesses.

Wednesday, February 4, 2009

Another Thing I Don't Understand

I read this morning that the senate thinks Americans should get a tax break for buying a new car. This is part of the "bipartisan" agreement on the ever-evolving economic stimulus plan. Republicans have been insisting that in order for them to sign on to a plan that includes all kinds of spending for infrastructure and job creation, they want to see the plan include more tax cuts. I'm having difficulty seeing the logic of cutting taxes as part of a package that is, in essence, a enormous tax bill. Keep in mind, this is a bill that we, and our children, and probably our grandchildren, will be expected to pay - the 900 billion dollars (last count) has to come from somewhere. So the senate has decided to kill two birds with one stone. By giving Americans a tax deduction for sales tax and interest on a new car, they can "help" consumers and aid the auto industry.

I truly am sympathetic to the plight of auto workers being laid off. These are hard working folks who were fortunate enough to have decent living-wage jobs and most have families to support. The last thing I would wish on anyone doing an honest day's work is for them to lose their job. The trouble is, the companies they work for put quarterly profits ahead of long-term viability and backed themselves (and their workers) into a corner by producing vehicles that no one wants to buy. They knew this was coming, but apparently the "big 3" were watching each other and waiting for the other guy to blink. They kept on producing inefficient and wasteful vehicles when they should have been investing in the tooling and technology that would create vehicles that made sense. I know I'm over-simplifying, but apparently the best solution our lawmakers can come up with is to throw some money at them and dangle some carrots that will get "consumer[s] into the showroom" so they can unload some more of those SUV's and "stimulate the economy."
This kind of says it all:

This is one consumer who won't be visiting the showroom. I'm saving for a bike. A locally made one.

I did find it encouraging to hear Obama come out swinging in response to the Republicans insistence that tax cuts produce wealth (ala "trickle-down economics") when he flatly stated he rejected that theory, as did the American people when they cast their ballots in November. Exactly. For what it's worth, both of Oregon's senators were in the minority when they voted against the auto tax break. Thank you Senators Wyden and Merkeley.

And is anyone else annoyed when government spokespeople refer to the rest of us as "consumers," like our primary responsibility as patriotic Americans is to "consume?" You don't hear the word "citizens" nearly as much these days, do you? And it seems we're "fellow Americans" only when someone wants something from us, like our vote.

On a closely related note, I was listening to Marketplace this week and the commentator was talking about the "danger" of thrift becoming a habit. Apparently, saving money is a good thing. But when everybody cuts back and starts saving, that's bad. It becomes a habit because people who stop buying stuff realize the stuff they were buying was unnecessary and pretty soon lots of people figure out they can survive just fine without all that cheap plastic crap from Walmart. As a matter of fact, many find their lives becoming richer in ways they hadn't imagined. The next thing you know they're planting gardens, raising chickens, making meals from scratch, blogging about shopping locally and sustainability, and choosing to ride bikes instead of drive. It starts looking like an anti-consumption revolution. Fortune magazine (of course) calls this "the trouble with virtue."

At this point I realize I'm bordering on violating the Baiku code - to focus on beauty and keep it simple. So here's where I wanted to go. Our economy - and therefore our culture - are changing in ways the history books would describe as revolutionary. Each of us gets to choose, every day, what that change will look like and how we will personally participate in it. I believe this. My wife and I recently made the choice to set a strict budget for ourselves. This was too long coming, but wasn't done out of desperation or, thankfully, unemployment. I have $100 to spend on myself every month. It's in an envelope. If I want a latte and a scone, a CD, a race registration, or a new saddle for the bike, it comes out of the envelope, and when it's gone, that's it. The point wasn't so much to save as it was to spend more thoughtfully. Instead of whipping out the debit card, my purchases have to be deliberate, and that has made ALL the difference. I believe spending is a form of voting. If I choose to spend my money at the Academy Theater, that's a vote in favor of a local business I think is good for my community. Conversely, if I chose to spend my money at Walmart (I don't), I'd be casting a vote in favor of their business model and labor practices. This kind of spending - and not spending - is empowering. I even kicked my Craigslist bike paraphernalia habit - I haven't visited the site since early December. As my wife said, there's always a good deal; the question is not whether I want it, but whether I need it. I'm slowly learning the difference. I'm also finding this type of thinking is spilling over into other areas of my life, like whether I choose to buy new or used, or what I want to grow & serve & eat, or what I watch & read, and most importantly, how I spend my time. Because like money, time is also finite and can be spent recklessly and thoughtlessly, or with deliberation and care. These lessons are good. It feel like I'm not the only person learning them.

Read. Ride. Repeat.