political rant

Spend smart
Spend on capital to speed the recovery

We have to spend in order to rebuild the economy. Spending is voting with your dollars that we're recovering. Most of that work falls in the government's lap, but we all need to pitch in. In the 1930s, people had to have enough community spirit to put their money into banks. Today, we need to put our money not into banks but into circulation. Ironically, right when we need to spend, we have less money to do the spending with. That's why it's important not only to spend but also to spend smart.

Smart spending means investing in capital, broadly construed. If you go out and spend $100, you stimulate the economy to the tune of $100. Doesn't matter whether you're spending it on energy-efficient lighting for your home or on a binge on food and drink. In either case, you've done $100 worth of good for the economy. The better lighting, however, leaves you in a better situation down the road. That's smart. Bingeing hurts your health, not smart. Smart spending does more because buying capital sets you up for future gains. And the capital you buy into can be any sort: financial, industrial, social, intellectual, physical, and psychological. This capital makes us money, saves us money, saves us time, guards our well-being, helps us enjoy what we have, or otherwise puts us in a better position than we were before.

We've got to keep spending. But the smarter we spend the better. So spend more on making yourself smarter, safer, and more efficient. Spend less on amusements that are here and gone. Cut back on everything that's actively doing harm, like cigarettes and fast food. Spend your money on energy-saving devices, books, a physical, exercise gear (that you use), computers, phones, car tune-ups, tires, brakes, oil changes, educational classes, exercise classes, gym memberships, healthier food, massages, therapy, vitamins, housecleaning, insurance, learning to fix things around the hose, tools, home improvements, insulation, etc.

Some people think waste is good because it makes you spend more and stimulate the economy more. Actually, waste doesn't make you spend more, it just means you get less for what you spend.

Charity Appendix
Charity has a special place in hard times. The $100 you spend on charity does $100 worth of economic work just like $100 you spend on yourself, but charity empowers volunteers (multiplying the effect) and makes a bigger difference to those who receive it than the same $100 would mean to you. These times are also a great excuse to clear out stuff you don't need so that someone can get some good out of it. Sell this stuff or just donate it to a local thrift shop.

Tags: economy, essays, politics