Finland is fighting the effects of the economic meltdown with a marketing campaign to get people to “continue spending as usual.” Never mind the irony, that this news reaches us via the China Daily News website.
But I digress…
For 90 percent of Finns, there is no need to reduce expenditure,” said Jukka Kurttila, chairman of the marketing agency Bob Helsinki.
Kurttila doesn’t say who those other 10-percenters are (rich people? poor people?). But what he does do, is show a picture of a demented piggy bank (left) with the words: “Don’t feed depression by saving” or “Saving is not always a good thing.”
WTF? Do you live in Bizarro World?
Shouldn’t we at least consider the opposite idea — that it might just be better if people saved MORE of their money instead of spending it?
For one thing, isn’t that how banks get the money they need to lend to businesses — the same businesses we keep hearing are the ones that will, you know, expand and hire more people? And not only that — maybe then we wouldn’t have to hand over all our money for ugly programs like TARP. In other words, the credit freeze wouldn’t be so bad. And isn’t that what this is all about?
Of course, before people can save, they have to have, you know, income that exceeds their expenses. And to do that you need a job that pays a decent wage — something that has been found in smaller and smaller measure over the last 30 years or so.
And/But if industry cannot provide that, then you need government to spend money to hire people to rebuild our infrastructure because it allows us — you and I — to get back to doing what made this country great: building and saving.
Instead, we get Republicans telling us that what we need is another tax cut because we know better than the government does about what we want and need to buy, buy, buy, buy.
Of course, what happens is that people simply borrow more, spending money they clearly don’t have, getting further into debt, paying exorbitant interest costs while getting less and less for their money.
Ultimately, the beneficiaries of that are the people selling credit — guys like John Thain who bought, with his billion dollar bonus, a $35 thousand antique commode — on legs:
Jon STEWART: Is there no greater metaphor of the dysfunction of our economy than a $35 thousand toilet that you cannot take a sh-t in?
As a society, we should be encouraging people to save and invest — and when you do buy something, we should be encouraging you to pay cash for everything. And if you can’t afford to buy it right now, then you should wait — and save your money — until you can pay for it.
You’ll pay less for everything in the long run and it’s the best way to get back at guys like John Thain and his $35 thousand toilet.
Did you know that when most people feel they’ve acquired something they desire, they get an endorphin hit? Saving money, not so much. Either way, the little piggy is a pretty good icon for what we’ve made of ourselves. I think we’re going to have to learn some new tricks.
It’s a question of delayed gratification.
Without going into it more deeply there’s these related articles:
The marshmallow study and what it portends about a child’s emotional intelligence (EQ).
What the marshmallow study can teach us about hiring successful salespeople.
And, although I don’t have an article to back it up, my hunch is that the epidemic of obesity (among children and adults) is tied in with this too.
Lastly, a discussion of brain chemistry today is not complete without referencing this recent article about how serotonin affects locusts (and, by implication, humans?):
I’m not convinced of the “unified theory” of Emotional Intelligence, particularly because of the many who have a high ability to interpret emotions (theirs and others) but show impaired ability for self-control. Obsessive-Compulsives, Psychopaths and Passive-aggressives are some for whom that isn’t at all unusual. I think that a more pure “self-discipline model” should be teased out.
Anyway, psychological predisposition (or therapy for same) may be the least of it considering we have developed a global society (be careful what you wish for?) sustained by the cultivation and satisfaction of immediate gratification. We’re the Pepsi Generation.
Obsessive-Compulsives, Psychopaths and Passive-aggressives are some for whom that isn’t at all unusual.
Well…you make a very good observation although I’m not sure that conjoinment indicates causality.
I think that a more pure “self-discipline model” should be teased out.
Can you expand on that please? Provide an example if possible.
a global society sustained by the cultivation and satisfaction of immediate gratification.
Heard a guy on NPR this morning talking about the next “engine for growth.” He didn’t know what it was and/but he suggested that government spending on infrastructure was being underutilized compared to its heyday in the 1950s.
He also said that he was pretty sure the demand-side engine has been idled for the foreseeable future.
“Can you expand on that please? Provide an example if possible.”
I was using the example of certain personality disorders to show that what I consider to be high EQ – being able to recognize and interpret emotions – can exist in people who have low self-control, whereas the current EQ theory holds that emotional awareness and self-actualization and self-discipline generally go together. I think the idea is, if you understand your own emotions, you’re unlikely to rationalize your way into slothfulness. I see little evidence of that in the data.
My son is actually a terrific example of what I’m talking about – extremely empathetic and clever about emotions (just like his mother), a natural salesman. Except, an equally low talent for self-discipline – basically, doing the chores he doesn’t want to (I once sent my staff into bemused shock by sending them a picture of his bedroom). As long as it’s something he wants to do – sports, academics he’s interested in, externally-structured work – he excels. So I would say he has a high EQ but low self-discipline and I don’t think that’s very unusual.
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“He also said that he was pretty sure the demand-side engine has been idled for the foreseeable future.”
Yes, I’m pretty sure that the “consumer economy” is dead. We’re going to have to actually start making things again.