save, save, save

More wisdom and advice from the WSJ. The front page today brought the alarming news that Americans are starting to save. This is surely frightening in a country where two thirds of the economy depends on consumer spending. The Journal points out that this trend is "Aggravating Nation's Economic Woes." 

The article implies that this "paradox of thrift" is the wrong medicine for the recession. This is not so different from soon-to-be-ex President W. pointing out in 2001 that we should do our patriotic duty and shop. Cut from the same cloth?

First of all, even if we wanted to, we Americans can no longer spend like we used to. We spent too much money recently, and almost all of it wasn't ours. Now we have to pay the bills, and in many cases suffer the economic consequences. Some will end up on the street and nearly all will end up much poorer than they were. In the end that is not so bad as all that wealth was nothing but a lot of hot air.

Second, a consumer-driven economy based on wasteful spending is not sustainable in the long run. The sooner you take it apart the better. Better in the sense that it can be done with less turmoil and less suffering. This economy does not need a rescue, it needs to crash. However painful that may be. It needs to be replaced by a more sane system.

Thirdly, finally something good is happening for the environment. What Al Gore and his 35,000 sq foot mansion and his Nobel prize could not accomplish, the recession will.

Even though conservative papers like the WSJ will eagerly point out that recessions lead to cuts in "green" energy and "conservation" plans, this does not matter. Less consumption is always preferable and better for the environment. Nature does not care about efficiency, it only cares about the absolute amount of pollution and resource depletion. The less resources and energy we use, the better.

Much of what is called alternative energy and the green economy is just a disguise for more spending and more consumption. It is not the way to go. Replacing your good possessions with "better" ones is bad for the environment. No self-respecting environmentalist should give in to this lure. Throwing away functional items is ALWAYS a bad idea.

As for saving, it is an essential skill for survival. Never mind bogus slogans such as "your patriotic duty," or the idea that you could become a white knight and save the economy. Neither is true. You will need to save if you and your offspring are going to survive in the end.

You need to stop buying stuff you don't need, and stop burning fuel for no reason. It isn't just good for the environment. It is good for you.