I notice that governments are going to borrow money to prop up our economies. Am I the only one who is struggling to make sense of this? Firstly, I have only a rudimentary understanding of Keynesian economics (and I don’t belong to the ‘budget deficit = bad’ school), but if *everyone* is borrowing at the same time, then who are they borrowing from? I can only assume from the graphics on the news that the US are actually just printing more money - in the manner of failed dictatorships everywhere. Essentially they are borrowing money from future generations, and some future government will have the unpleasant task of withdrawing the $1.5 trillion from the economy. Perhaps if hyperinflation kicks in, it won’t hurt so bad.
Secondly, isn’t a large part of the problem that we in the west have all been living above our means….. spending money we don’t yet have? Here is a moment in time where perhaps we can use people’s renewed sense of caution, and start to shift from a consumer economy to a conserver economy. Let’s not waste a crisis…… let’s do things differently. If you take the view that every dollar spent represents roughly one unit of embedded resources and energy used, then here is a chance for us to spend less dollars, and thereby use less resources and energy! I’m as guilty as the next person of dithering around trying to make an “ethical” purchase….. fair trade? organic? non-sweatshop? earth-friendly? second hand? durable? The hard truth is that in many cases the most ethical choice is not to buy anything at all.
If you spend less money, you won’t have to work so much…. and hey presto! You might have created a part time job and income for someone else!
It’s just depressing to see the lack of imagination around when all the Australian government can come up with is to spend more money – to make up for the money that consumers aren’t going to spend! The problem isn’t that there “isn’t enough money out there” – the problem is that the money isn’t well distributed. Damn right we need to “spread the wealth around!” In this dog eat dog world, everyone feels they need their own piece of the pie, because no one can trust that anyone else will share. What about investing in some truly sustainable resources – like community spirit?