Random Thoughts

Saving versus spending – Part 2

 

December 7, 2018



As we saw last week, sometimes the government takes actions designed to encourage consumer spending. Apparently, money (rather than love) is what makes the world go round!

But I thought the U.S. government went too far in trying to stimulate consumer spending in the wake of the 2001 terrorist attacks that brought down the Twin Towers of the World Trade Center in New York City.

As a result of that historically tragic event, many people in the United States quite naturally decided to do two interconnected things for a while: (1) stay close to home and (2) stay off airplanes!

One result of decreased travel by Americans was that the tourist industry saw a sharp decrease in income for several months. Motel rooms remained empty; restaurants and gift shops had few customers; many workers lost their jobs.

Consequently, several people holding positions of authority in the U.S. government encouraged Americans to keep spending their money. If consumer spending declined, the economy would suffer and that (the theory went) was what the terrorists wanted.

After all, they had struck at the symbolic heart of the American economy by attacking the World Trade Center. So, government officials argued, it was the “patriotic duty” of loyal Americans to spend their money!

Well, with all due respect to these presumably well-meaning officials, I disagree. I think it is my patriotic duty to spend my money wisely and prudently to buy the things my love ones and I need and want.

I also think it is my patriotic duty to vote and help elect people to office who will take actions to bolster the American economy.

But I don’t think I need to take trips I don’t want to take or buy things I don’t need in order to help the economy grow. And I don’t like for anyone to call me unpatriotic!

I like to be frugal with my money and save some of it for the inevitable and proverbial rainy day – and I would like to see the government help me do that.

 

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