Thrift has long been considered an American virtue. Something about the Puritans bringing only one big-buckle hat per man to the New World. Quotations extolling the virtues and benefits of thrift are easy to find.
"Beware of little expenses; a small leak will sink a great ship." ~Benjamin Franklin
Frugality, many have noted, is not only a benefit to the purse, but to the character as well.
"Industry, thrift and self-control are not sought because they create wealth, but because they create character." ~Calvin Coolidge
In the most recent economic downturn, and with the ease of discourse provided by the Internet, frugality has found a robust resurgence. Websites devoted to shopping deals, online specials, coupon savings, and thrifty lifestyles abound. And tho I may be a debauch and a libertine by their standards, I have no quarrel with those (especially those with large families) who find inventive ways to stretch a dollar.
Except...
Recently there's been a trend toward blaming the poor for poverty, and toward blaming the foreclosee for his or her foreclosure. The view that "THOSE PEOPLE should have read what they were signing" has been expressed by many in response to the mortgage and foreclosure crisis. Unfortunately "those people" are our neighbors and friends. And while much has been said about signing mortgages carelessly, very little has been said about the aggressive pitch techniques used by banks to seduce new home-buyers into balloon payments, etc. At last, with the Occupy Wall Street movement, comes some belated outrage over the way banks conducted themselves after the repeal of safeguards like the Glass-Steagall Act of 1932 (look it up).
Yet among many the cry persists: "That could NEVER happen to ME. I keep track of my money." The view is especially popular among my Libertarian friends, who--while favoring a boom and bust cycle over Federal bailouts and other interventions--also believe that in the event of a global economic meltdown, THEY somehow will be spared from ruin. You may ask, "But how?" And the answer I have received almost without fail: thrift.
When faced with the proposition that immunity from a global financial collapse may require more than a few thousand dollars squirreled away in a mattress or a talent for coupon-clipping, most laugh it off. It is the same laugh one hears from drivers who believe their Escalade can drive thru shoulder-deep flood waters. The next sound is usually a call to 911. The fact is: a true 1929-style collapse would place 20% to 25% of American workers out of a job for extended periods. Foreclosures and evictions would be rampant. Modern-day "Hoovervilles" would pop up. The poverty and suffering would be on a scale unimagined in the developed, industrialized world.
This idea that we should abandon those suffering the weight of the recession because they were morally flawed when they signed their mortgages must be rejected. As must be the idea that a hefty book of coupons is sufficient liferaft for a true economic maelstrom. When we become divided by blame and self-centeredness, we begin to weaken the bonds of our communities. When we quarrel and quibble among ourselves, we fail to see who profits from our misery. When we give in to fear and hoarding, we make poor choices, both personal and political. And perhaps most importantly, when we each worry only about saving ourselves we cease to be the kind of people to which we aspire as a nation.
Thrift is indeed a virtue. But it is NOT a panacea. Nor should it be a weapon used to smugly defend oneself while abandoning one's brother. Aesop's "Ant & the Grasshopper" may be an effective cautionary tale, but it is not a guide to compassionate living.
Nailed it again, Charlie. If you weren't so damned RIGHT, I'd have fewer sleepless nights. Thrift is great for those who have had the ability and opportunity to accumulate a stash in the first place. But what about those who can't, for a host of valid reasons beyond their control?
Like my nephew, whom I've been supporting for fifteen years now. He was born with emotional, intellectual, and social disabilities that make building a reserve of "wealth" impossible. It terrifies me to think what will become of him when I'm gone. Will there be any safety-net left? Where will his next meal come from? (Thrift doesn't even apply -- dumpsters don't take coupons.)
Will anybody care?
Posted by: trainwatcher | October 05, 2011 at 05:32 AM
Thanks, Bob. So many families are in precarious financial situations these days, thru no fault of their own. So many service workers have no unions, no protections--the hospitality, fast food, migrant farming, and other industries among them.
I think of you and David often, and of the many single moms whom I know.
Posted by: Charlie | October 05, 2011 at 07:26 AM