Get Rich Slowly, a blog about personal finance that “makes cents” (hehe!) recently posted some thoughts on Newsweek’s A Penny Saved Is a Penny Spent.
Conant’s article in Newsweek basically boils down to this:
As talk of recession and belt-tightening makes headlines, I wonder where and how I lost my grandfather’s sense of thrift. Like many young professionals (I’m 36), I embraced the lessons of my seniors about hard work. Yet my generation racks up debt the way our grandparents used to squirrel away pennies…. My generation grew up just as home-economics classes were being phased out and credit cards were being ushered in.
I’ve condensed it a lot, obviously. Please do go read the whole thing, it’s good stuff.
In his analysis, J. D. Roth points out that griping about the wastefulness of modern society is hardly new.
For decades — centuries, even — people have complained that younger generations haven’t inherited the financial wisdom of their elders. During the 1750s, Benjamin Franklin bemoaned the lack of money skills among the American colonists.
However, the current state of affairs does indeed go far beyond that. J. D. includes a scary graph to demonstrate that: between 1940 and today, consumer debt rose from around zero to OVER THREE TRILLION DOLLARS. That is trillion. With a “tr”. The one with twelve, yes, count ‘em, twelve zeros. 3,000,000,000,000.
The thrift of the good old days wins hands down over the spending glut of today. Seriously, people, THREE TRILLION? Do you REALLY need that much CRAP?
I’d also like to add, however, that advocacy of thrift should not translate to being a stingy bastard. Buy good quality — it will be less expensive in the long run, since you don’t have to replace the cheap crap that keeps breaking. Tip people — if you can afford to fly on a plane, you can afford a few bucks for the nice skycap who’s helped your wife and two small children struggle to check in with four suitcases (YES, Buzz, I’m talking to you). Thrift isn’t about only spending as little as possible, it’s also about spending your money wisely and well.
Please, people, spend wisely and well. Three trillion is just batshit insane.