In desperate times, the last thing you want as an individual is your money gone by 9pm… what are you eating for breakfast if that happens? What are you going to eat for that matter? May be borrowing from a close friend… but wouldn’t that chain you down? Well yes, you would lose some of your autonomy. You would practically be working to recover money you didn’t produce, money you didn’t have in the first place. But how then, would you have money for breakfast if by 9pm you don’t have any at all? Saving would be the obvious choice at the earliest of your thoughts.
But what if I want to think a lot further into time than just tomorrow’s breakfast? Would savings be the right answer? Adam Smith would crawl over in his grave… ironically enough, spending would be the way out of the depressive hole. Does that mean getting into debt? Short run… yes… long run = another stage of meltdown. So what to do?
Behavior and attitude are our blind tools after all. The only answers. Use them right and the power of the psyche actually CAN AFFECT economics… check this out for instance http://www.ted.com/talks/tim_jackson_s_economic_reality_check.html and let me know 🙂