The US economy is the topic of so much news and conversation it seems impossible to discuss it more, but with a possible economic downturn looming, the Federal Government planning a stimulus package of $150 billion or so, and an election coming in the fall, the economy is more and more the subject of conversation. In this light, I feel motivated to present a quote from the Greek philosopher Plato. Despite having been written 2360-ish years ago, it seems to describe the United States today:
"The rulers, being aware that their power rests upon their wealth, refuse to curtail by law the extravagance of the spendthrift youth because they gain by their ruin; they take interest from them and buy up their estates and thus increase their own wealth and importance?
There can be no doubt that the love of wealth and the spirit of moderation cannot exist together in citizens of the same State to any considerable extent; one or the other will be disregarded."
Plato, The Republic, Book VIII
Plato is discussing a decadent state, in which people are honored because of their wealth, and consequently everyone wants to be rich. Just like Plato's spendthrift youth, our society eagerly encourages every imaginable vice: greed, impatience, lust, self-indulgence, violence, and immoderation, because it is good for the economy. In case the link between economic progress and vice is not clear, imagine an economy full of people who are patient, self-controlled, moderate, prudent, careful, and most of all, generally content with life. These people save much and spend cautiously. If their economy grows at all, it grows in a slow, stable kind of way which makes it hard to get rich quick.
Who wants an economy like that? Not us; we want the money flowing quickly from one place to another. Which means, we want the extravagance of spendthrift youth, where people spend so much and so impulsively they need to take out loans just to be able to spend more. Imagine a person whose self-worth is based on what he owns, trapped a kind of mental hole, trying to find happiness with his next purchase and being perpetually disappointed. This kind of person buys to survive, and helps raise the
But this plan only works for a while. Witness the current finance crisis, caused by banks loaning money out in risky ways, lured by the promise of quick profits for which they do not have to wait and do not have to work. The plan made a lot of money, and then the bubble burst and everyone who was riding it got wet. Casualties of progress? Casualties of profit.
Recession is inevitable because the economy is overinflated, with large amounts of private debt and excessive discretionary spending. Practically every economist recognizes this. The question is whether we can ride it down softly or it will be painful, or maybe we can postpone it for a few more decades.
I propose that we look at a new model of life, one which focuses much less on producing and consuming, one in which we are determined to buy less and be content with what we have. There are some things money can't buy, and those are the things that are most worth having; friends and family and peace of mind. Those are the things we should be focusing on.
