Savings and redemption
This article at Slate caught my attention, not because it’s about the Bailout, but because it was written by pariah (and now Slate columnist) . . . Eliot Spitzer! The name of the regular column will be “The Best Policy.” I think that’s a hilarious title, and I look forward to reading what the man has to say. In his first column, he says that the Bailout is a bad thing because it repairs fundamentally flawed businesses:
None of the investments has even begun to address the underlying structural problems that are causing economic power to shift away from the United States, sector by sector.
Then he gives examples, including this frightening (personal one):
Our household savings rate has been close to zero—and even negative in some years—not permitting the long-term capital accumulation required for the investments we need; China’s savings rate, by comparison, is an astonishing 30 percent of household income.
But he also praises the U.S.:
We have, indeed, converted virtually the entire world into one integrated capitalist economy, and we must now bear the brunt of serious and vigorous competition. In the immediate aftermath of World War II, the United States was essentially the only nation with financial capital, intellectual capital, skilled labor, a growing middle class generating consumer demand, and a rule of law permitting safe investment. Now we are one of many nations with these critical advantages.
My plan: Save money. Invest it. Wear old clothes. Grow my own food. Work hard. Play affordably. In short, act like my grandparents. That’s how to win in the global market. And welcome back, Governor Spitzer. America is still good for one thing: redemption.




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back to top8 Comments to “Savings and redemption”
HSK- I have followed that plan all my life, mainly because I have never earned that much. No wonder my wife and I are not in serious financial trouble.
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additional tip (I hope you’ll agree): Read Wendell Berry!
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We, collectively, are in trouble because:
A) Our leaders became deluded into thinking that somehow this is a “post-industrial” world and that a sound economy can be based on moving money in endless circles with everybody taking little slices of it and nobody really creating or manufacturing anything.
B) Our leaders have failed to call upon us or remind us that sacrifices, including taxes, self-denial, and savings are needed to keep an economy or a household strong.
Interestingly, I think that to at least a minor extent the religious right is to blame for Part B. To the extent that any kind of “morality” is present in politics, the morality advised by the religious right is focused on sexuality and reproductive issues rather than the other economic “sins” like gluttony, selfishness, and sloth. There is also the nasty tendency to focus on ant-Muslim bigotry in the sense that “Christianity is good, Islam is evil”.
Even the less strident mega-churches like Osteen which do focus on econmic issues are much more concerned with the message that worshipping Jesus will make you rich, rather than working hard, living frugally or saving money.
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“the nasty tendency to focus on ant-Muslim bigotry”
Some of my best friends are ants but I’ve never inquired into their religious beliefs.
“the morality advised by the religious right is focused on sexuality and reproductive issues”
That caricature of evangelical Christianity arises because the only place many critics encounter Christians is when they are trying to push their pro-abortion and pro-”gay” policies in their faces.
I can assure you that the time and energy Christians focus on “sexuality and reproductive issues” is virtually nil. We are too invovled in Scripture Study, small groups, benevolence, missions, discipleship, worship, Christmas and Easter cantatas, etc. to get wrapped up in the hot button issues of the Left. But if you push those buttons to engage in a debate in our presence, we will be heard. If that’s all you do, you will likely develop the mistaken impression that that is all we do.
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The car execs there in Washington begging for additional money from DC do in fact remind me of Ms Dupree, so perhaps Spitzer is qualified to speak on this matter.
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Ken:That caricature of evangelical Christianity arises because the only place many critics encounter Christians is when they are trying to push their pro-abortion and pro-”gay” policies in their faces.
Sadly, almost nobody is either “pro-abortion” or “pro-gay”. That verbal jujitsu, which seeks to somehow depict Christians as victims, is getting old and stale. Nobody I know is encouraging people to have abortions or encouraging their kids to be gay. On the other hand, Christians are trying to ban abortions and impose penalties and civil disabilities on those who are gay.
The plain truth is that, when it comes to political advocacy, which is what I was talking about, the “religious right” has nothing to say about economic issues. And in pushing its sexuality and reproductive issues, it has taken political focus away from any issues of individual or collective economic morality.
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Arcadia said:
“Our leaders have failed to call upon us or remind us that sacrifices, including taxes, self-denial, and savings are needed…”
Hmmmmm… I don’t buy it. Reminding us to be virtuous is not our leader’s job. I mean, they don’t have to remind me not to boost cars or shoot my neighbor. I’m kind of supposed to know not to do those things.
” the morality advised by the religious right is focused on sexuality and reproductive issues rather than the other economic “sins” like gluttony, selfishness, and sloth”
Absolutely agree.
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A gov’t which has lost the nerve to tax should lose the right to govern.
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