Sirota: Overconsumption won’t save America
Friday, Jan 27, 2012 1:00 PM UTC
To avoid another crisis, we need an economy based on thrift and sustainability not loans and credit card debt
By David Sirota
In 1977, two Boeing 747s collided on an airstrip in the Canary Islands. According to accident investigators, those who survived the initial blast in one plane had time to escape before a fire consumed the wreckage. But eyewitnesses reported that many remained in their seat looking perfectly content as if nothing was wrong.
Not surprisingly, dozens of these dazed victims were burned to death, and the episode became a reminder of the so-called normalcy bias a cognitive phenomenon whereby many who are faced with imminent disaster instantly convince themselves that everything is normal and that they dont have to modify their behavior.
Unpleasant as this anecdote is to recount, it exemplifies the psychology at the root of one of Americas most destructive traits: our obsession with materialism and consumerism. To extrapolate the metaphor, if our damaged economy, record-low savings rate and sky-high personal debt levels are that smoldering plane about to explode, then Americas shop till you drop normalcy bias may be engineering yet another avoidable tragedy.
The most recent holiday binge exemplified the impending crisis. Despite persistent unemployment, flat wages and higher prices for necessities (food, healthcare, etc.), America nonetheless went on its usual post-Thanksgiving buying spree.
Read the entire piece at Salon.com
no_hypocrisy
(46,080 posts)Consumerism, that is, the purchase of goods and services, has replaced agriculture and manufacturing as the engine that runs this economy. Stuff has to be purchased in order to keep people from losing their jobs, etc. And that leads to overextension of credit, excess disposal of waste, and materialism generally.
Thrift is admirable and a goal, but realistically we have to have an alternative to shift towards in order to effect it. Ideas like bringing back tariffs to imports are worth looking into to have more manufacturing in this country. Not necessarily to feed our consumerism, but for the sake for exports that are purchased abroad. Other than manufacturing, I'm not certain what could replace consumerism and the service industry to support the American economy.
xchrom
(108,903 posts)salvorhardin
(9,995 posts)Source: https://docs.google.com/viewer?url=http://www.yale.edu/law/leo/052005/papers/Warren.pdf
Elizabeth Warren interviewed about why Americans are really going broke.