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 A break from spending 

A break from spending

Spending has become so central to our way of life, to our society, to our economy that when we pause in our spending our government throws money at us. Well, it doesn't throw money at me but it throws my money at you, which I'm trying to see as almost as satisfying. Without spending we're doomed, says government, and I suppose it is true that the economy we know is doomed if we don't spend as we've always spent.

The problem is that to spend as we've always spent we need to spend more. Without us spending an ever-increasing amount there is no growth and when there is no growth, according to economists, there is doom. The sun of prosperity would set, although, perversely, we'd have a better view of its setting because factories wouldn't be spewing as much gunk into the atmosphere.

The retailing tycoon Gerry Harvey and others say the good times will return because we will always want more and better, and they are right. Shopping has become a sport, its own end, and somehow the spending has become more important than the goods. But did we always want more and better? Was there a day in modern times when enough was enough, when, even, enough was wonderful? Or was it simply that our grandparents and theirs were content with the slower arrival of more and better?

It occurs to me that a break from the spending whirl, an enforced reassessment of what we have, what we need and what we want, may be timely. Consumerism and materialism has become a mania, a compulsion we dismiss as the normal urge to improve our lot. Instead, I think, this compulsion has usurped aspirations that gave a life meaning and purpose.

Do you agree that it is high time we spent less, that we'll be happier for spending less?

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Date: Newest first | Oldest first
Jeff - I rarely agree with your comments - on this one you've hit the nail on the head. It's like force feeding a chronically obese patient to make them better. No chance!
Posted by Martin, 17/02/2009 4:23:52 PM
Now that you've crossed the bridge you'll feel much better Martin.
Posted by Jeff Corbett on 18/02/2009 7:52:13 AM
Spot on Jeff - we have for too long been encouraged to spend, spend , spend regardless of the effect this may have on our sense of values, our credit debt levels, our sense of well being (measured too often by what we own and more specifically by what model we own) and what this teaches the succeeding generations. very few people I know are able to wait "until they can afford" consumer goods - rather they buy it now and pay for it for the rest of their lives, and in some cases will leave the debt for their children. Do we really need the "latest" and "greatest" of everything or could we get by on what we can actually afford?
Posted by zuluclayman, 17/02/2009 4:51:36 PM
Jeff you're a one man wrecking ball for the whole Rudd Government, indeed the whole world's approach to the global financial crisis. Your fiscal stimulus won't cost anything. You're far too cheap and agreeable to this correspondent.
Posted by pablo, 17/02/2009 9:11:30 PM
Maybe this has something to do with the decline of traditional churches.... i.e. I would rather worship David Jones than Jesus Christ? What I find amusing is the amount of people spending money on how to find happiness, nirvana and a calm way of life. You only have to look at the self help section of a book shop and the plethora of VERY EXPENSIVE courses over weekends at lovely boutique retreats. I will be the first to admit that I have been an avid consumerist in my time (and still am at times), however I still don't have a plasma tv, wii, etc. and am making sure that I don't fall into the trap of buying these things. We are surrounded by consumerism in every form. Even watching a drama/soap on tv it is self evident. Besides the ads! All the actors have never ending new wardrobes and accessories, fabulous fake tans, nails and hair. I think it starts from childhood when we deck our babies and kids out head to toe in labels - whether it be a thomas the tank engine t-shirt, doona, sheets, slippers, backpack, lunchbox etc, we teach our kids that to be acceptable you need to wear label clothing. It is quite the subliminal message!
Posted by leahkf, 18/02/2009 7:18:51 AM
yes, i'm with u on this one jeff ... defining the success or otherwise of a society on the basis of GDP figures is absurd. Time will be called on this soon enough. It served its purpose during the high-growth, post-war years. But now we are reaching a plateau, and the economy should be geared toward maintaining our standards of living. But that'd require a change in the economic framework generally... whether the governments masters at the IMF etc will let it happen is another story.
Posted by albe, 18/02/2009 7:29:53 AM
Is there a recession on Jeff? I don't think it has sunk in yet, go into any of the JB Hi Fi shops at Kotara on weekends and the place is packed with four tellers taking money. I had a look around and i did not see anything that was a necessity of life. I believe this mentality, too have possessions at any cost, was brought on by the banks, and an elusive, fictional thing called "home equity", too many people were caught up with adding massive amounts of money onto the home loan for cars, holidays, electrical appliances and paying out the credit cards, etc. They will be paying these items off for 20-30 years. If you have alot of debt, I think it is a time too bunker down for the storm
Posted by Buell, 18/02/2009 10:28:24 AM
It seems to be a fundamental flaw of economics that growth must continue onwards and upwards, when clearly resources are finite, and demand must of necessity plateau – we simply can’t acquire indefinitely either. Demand has been largely stimulated in the last decade or so by the “desire” to have the latest technology, the biggest house, the best holiday and the most toys. However “desire” has been promoted as “need” and what would have been regarded once as “nice to have” has become “essential” and has been promoted heavily as such by those who sell these goods and service. As a result, people no longer save as they did in the past to acquire the nice house, or the new car – they can have these “essential” items right now, nothing to pay up front and interest free (see terms and conditions!). All of this is great, until the crunch comes, as it inevitably must. Personally I’m glad that the “global financial crisis” has arrived - I have a secure job, relatively modest debt, no exposure to bad investments and secure superannuation. My prediction is the next “must have” will be time – time to enjoy your life, do the things you want to do and to spend with the people you wan to be with. The best way to “buy” time is to lower your material expectations so you have to spend less time working to support them.
Posted by Directeur Sportif, 18/02/2009 10:36:24 AM
Yes, DS, I too believe time is the next must have. For many time to follow our own whims has been a priority for a few years now, and that was firmly behind, by way of example, my declining of this paper's deputy editorship some years ago and my annual buying of two weeks' extra holidays. I believe, too, that the superannuation industry's assessments of the amount of money we need in retirement is exaggerated, perhaps greatly exaggerated. Of course it is in that industry's interests to have us devoted for as long as possible to accruing super. Yes, I need money but I want time.
Posted by Jeff Corbett on 18/02/2009 11:37:13 AM
Spot on, Jeff. I'm a 40-something advocate for free markets, small government, less regulation, capitalism etc. I also acknowledge that we have, in many ways, begun to worship at the altar of retail, of consumerism, and to escape from real life (and life's real challenges) through 'retail therapy', that soul corroding, synthetic 'world' where 'getting stuff' seems more worthy than 'being someone'. I absolutely detest shopping. I loath the Westfields, the Stocklands, the GPTs (happy to own Westfield shares, however...). I just don't understand the concept that people (mostly younger people who can ill afford it) would buy ringtones, let alone "need" a mobile phone. I cannot understand that McDonalds et al remain popular in those (hideous) food courts, when fresher, tastier offerings are available. I will never understand how spending time in big shopping centres is fun. I find it intensely unpleasant, especially at Christmas. I support wholeheartedly the idea of the Newcastle farmers' Markets - but note that many of the stallholders or their products have no connection to farms. The trends toward home grown vegies (tomatoes) and urban permaculture and away from outer suburban McMansions are possibly glimmers of light on the horizon. Let's hope so. Each hour of life that each of us has is worth so much, it seems an appalling waste to stand around in 'malls'. We are Australians! We hail from the Great Southern Land, home of the great Aboriginal civilizations and the ANZACs. We're all destined for things far mor important than ringtones, McFlurrys, interest free furniture and baseball caps. Let others live small lives, but not us.
Posted by StopPayingTheBludgers, 18/02/2009 11:51:16 AM
A truly stirring call!
Posted by Jeff Corbett on 18/02/2009 12:14:42 PM
At last DS I concur! And Jeff the more you do the sums for retirement, the longer you think you have too work. Tell me DS when do you know it's time, or do you wait for the tap on the shoulder. I read some stats some time ago about men who retire too late. The stats collected over 20 in the USA years stated, that if a man who works full time and retires before 55 he can expect to live into his eighties. If you go after 62 your lucky to make 70. DS in your line of work have you come across anything similar?
Posted by Buell, 18/02/2009 12:06:59 PM
Stoppayingthebludgers, love your work, but unfortunately some of the poorest states in the world are victims of free trade. African nations have a wealth of minerals which are sold by corrupt westerned backed dictators and yet they are poor and starve. Asian states have no real wealth to sell, but most are prospering. It appears too a lay person that if the west (USA) supports you, you prosper. And just to add a rule of thumb, the golden arch states never make war on each other. Free trade is wonderful in general but disasterous for some.
Posted by Buell, 18/02/2009 12:42:16 PM
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Jeff Corbett
Bend the online ear of the Hunter's most provocative columnist.

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