Wednesday, October 14th, 2009

Crass Consumerism

Approximately a year ago, Time Magazine listed the twenty-five people most responsible for the economic collapse.  Among the expected choices were Bernie Madoff and executives of some of the financial brokerage houses, but a revealing choice was the American consumer.  The article pointed out that in 2007 average household debt was 130% of household income.  Twenty-five years ago the ratio was 60%.  Today, according to most experts the economy’s turn around awaits the return of normal levels of consumer spending. But if consumers previously spent significantly beyond available income, then why is the resumption of the same bad habits the supposed salvation for the economy?

In previous generations families saved to afford large purchases.  Today, with the proliferation of credit cards, everything is charged, and until this recent recession, saving was almost non-existent.  In contrast, the Book of Proverbs challenges us: “A good man leaves an inheritance for his children’s children.” (Prov. 13:22) A noted economist recently declared that the next generation is likely to be poorer than this one.  What has happened to our country, and what can be done to turn the tide?

The Bible concerns itself with adequate provision.  In fact, money matters is its most extensively addressed subject.  In the Sermon on the Mount Yeshua focuses on personal need.  Regarding food, clothing and shelter, he says, “For all these things the Gentiles eagerly seek; for your Heavenly Father knows that you need these things. But seek first His kingdom and His righteousness; and all these things shall be added to you.”  In this text Yeshua clarifies priorities. Our nation must do the same, both at the individual and governmental levels. 

In the 1950’s average house size was under 1200 square feet, in 1970 - 1400 square feet, in 2006 - 2350 square feet, and family sizes were larger in the past than now.  Buying a house is part of the American dream.  As a homeowner myself, yes, it’s nice.  But why buy a house with excessive space, all of which needs to be filled, decorated, lighted, heated and cooled?  Why purchase a home to which one barely financially qualifies, based on two incomes, when smaller, older and more affordable houses are available? 

How about gadgets?  50 inch HDTVs, Iphones, Ipods, GPS, digital cameras, even robots.  Are they necessary?  What’s more important - the $1000 TV plus the special monthly cable service or investing that amount into a state sponsored college education fund for one’s children?  There still are Americans who survive on - God forbid - small, black and white televisions. 

Individual excesses are simply multiplied at the governmental level.  I worked in the Congress from 1977-86.  Shortly after the election of President Reagan, the economy collapsed into a severe recession.  For the first time in American history, the annual federal budget deficit was projected to exceed $100 billion.  In response, the President influenced the Congress to cut spending.  It was an arduous process.  Instead of Members of Congress channeling funds to local projects (known as earmarks), now benefit programs were shaved.  Still, annual deficits grew to almost $300 billion until the mid-1990’s.  Amazingly, from 1998-2001, the federal budget was in surplus.  Since then, the deficit has ballooned through the roof, this year significantly exceeding $1 trillion.  This excessive federal spending is similar to individual households spending in excess of income.  For awhile, it’s sustainable, but eventually the house of cards collapses. History reveals that most empires declined due to overspending. 

Crass consumerism and an entitlement mentality has overtaken America.  The ship can be righted by individuals reducing their demand for the unnecessary and living within their means. Politicians must be held to account for reckless spending decisions, including going to war and expanding domestic programs without sufficient funding.  Yeshua concluded the Sermon on the Mount with these words: “Therefore every one who hears these words of mine and acts upon them, may be compared to a wise man, who built his house upon the rock. And the rain descended, and the floods came, and the winds blew, and burst against that house; and yet it did not fall, for it had been founded upon the rock. And everyone who hears these words of Mine, and does not act upon them, will be like a foolish man, who built his house upon the sand. And the rain descended, and the floods came, and the winds blew, and burst against that house; and great was its fall.” (Mt. 7:24-2) Will America listen?