Our system is based on getting people to buy stuff, and people only buy stuff when they have money.

[phantom power]

I don't know if I'd ever looked at it exactly that way before. But really, from a economic standpoint, why would anybody care if I take my welfare check and spend it all on Reese's Peanut Butter Cups, Stone IPA and episodes of Big Bang Theory on iTunes(*). That's a public health education issue, but it sure as hell isn't a economic stimulus one.

A lot of my favorite American books and movies are about the conflict between the seductive glitter of capitalism and the supposed emptiness and amorality of it all (“Sister Carrie” is another good example). I don’t know about you, but I like all the crazy shit we’re encouraged to buy here, especially electronics, liquor, and travel, and I wish I could afford more of it. I realize it’s mostly an empty experience but as empty experiences go, it’s one of the best. The amorality of it all sometimes troubles me, but I don’t have enough totebagger or Jesus freak or back-to-the-lander in me to turn my back on it.

Alex Parenee makes the convincing case that Kinsley’s love of austerity is “a holdover from the days when it looked like liberalism Wasn’t Working and New Liberals with a bunch of crazy counter-intuitive conservative ideas were thought to be much more entertaining”, but for many others, it’s part of some misguided attempt to impose conservative morality on the capitalist system. I understand this moral urge, I favor imposing liberal morality in the form of a social safety net and the maintenance of a strong middle-class…but there’s a ton of evidence that these help generate the strong consumer base that is the bedrock of our economy anyway. Our system is based on getting people to buy stuff, and people only buy stuff when they have money.

For a lot of austerians, the conservative morals — punishing the middle-class for its excesses — come first and evidence that this might lead to better economic conditions comes second, or not at all (it’s a lot like Iraq: FREEDOM comes first, the details of the occupation comes second, or not at all). Strapping young bucks buying flatscreen teevees with their gubmint stimulus money is inherently evil, no matter what effect it has on the economy.

http://www.balloon-juice.com/2013/05/17/remember-lots-wife-renounce-all-sin-and-vice/

(*) just theoretically speaking

[CJCRANE]

1. Money is a unit of organization and motivation.

I have a friend who lives in Africa. She lives in a poor country where the government is small, ineffectual and broke and can't afford to provide much of anything so as a result there aren't many jobs, or much security or healthcare*.

So, I send her money occasionally to help her out.

But what is that actual "money". It's just a few electronic signals that's then converted into bits of paper.

But with that money she can then go and buy food, get medical treatment, fix her roof or whatever.

If you multiplied that and put more money in more people's pockets in that country - then suddenly you have people moving around, doing stuff, selling stuff, fixing stuff.

And once there's cash circulating in the economy people start to get ideas. Like John in the village wants to buy a radio so he collects up some coconuts or whatever and takes them to the town and sells them. Before you know it John's a small businessman. Maybe he's not rich, but people in the town have enough spare cash to buy his wares, so that keeps him busy and his customers satisfied. John can then buy a radio off another businessman, start fixing up his house (paying someone for the paint or whatever) and the money starts to circulate. It's just bits of paper but suddenly it's moving around organizing stuff and motivating people.

That's really the only difference between the third world and the first world. In the first world in the second half of the 20th century average citizens had spare cash in their pocket and the government provided jobs and money so that infrastructure and other services could be maintained, fixed or even improved.

If you take this money out of the economy and out of people's pockets then the organization and motivation starts to break down and things slow down and get worse for the majority of people.

*BTW I'm not saying that this situation is true of all African countries. Some African countries are making big strides in economic development.