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FRIDAY, NOVEMBER 27, 2009
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 OPINION 
6

Spend, Baby, Spend —or We're Sunk

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(Newser) – Our massive economy will remain stuck until hoarders open their wallets and "roll the dice" once again, Daniel Gross writes in Newsweek. Investors and consumers alike must regain their "penchant for gain and risk... some of the essence of what makes us American." Until that caffeinated, delirious plunge into the capitalist rabbit hole entices us, our thrift will make "everyone poorer."

It's a great time for innovation, Gross argues: Government incentives are funding green startups and hundreds of US billionaires are rich enough to invest—as the Rockefellers did during the Depression. For further incentive, consider the world: “Until America emerges from its bunker, the global economy—facing its first year of contraction since World War II—is likely to remain moribund,” Gross writes.

An investor checks the share index at a investment bank in Kuala Lumpur, Malaysia, Tuesday, March 3, 2009. To save the economy, we need to start investing again, Daniel Gross argues.
An investor checks the share index at a investment bank in Kuala Lumpur, Malaysia, Tuesday, March 3, 2009. To save the economy, we need to start investing again, Daniel Gross argues.   (AP Photo/Lai Seng Sin)
Despite high savings and unemployment rates, one US shopper is contemplating a purchase.
Despite high savings and unemployment rates, one US shopper is contemplating a purchase.   (Shutterstock)
Rockefeller Center is seen reflected in a window. In the Great Depression, John D. Rockefeller Jr. financed the construction of the Center in
Rockefeller Center is seen reflected in a window. In the Great Depression, John D. Rockefeller Jr. financed the construction of the Center in "a massive, private stimulus program."   (AP Photo/Mary Altaffer)
Shoppers walk along Fifth Ave. in New York. Thrifty consumers need to start spending again, Gross argues.
Shoppers walk along Fifth Ave. in New York. Thrifty consumers need to start spending again, Gross argues.   (AP Photo/Mark Lennihan, file)
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The precautionary behavior of every entity in the global economy has gone up. We've gone from an age of entitlement to an age of thrift. - PIMCO CEO Mohamed El-Arian

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6 comments
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Snarfeh
Mar 15, 09 8:17 PM CDT
If they had split the first $#%$ing bail-out between every tax paying American in this country, the economy would have jumped like a rabbit in fright! People would have paid off debt, spend a freakin' TON of money last Christmas and Circuit City would even still be breathing...greedy politicians & rich white men running big corporations cannot abide the thought of that money going into our hands, even as rich as they all already are....mongrels, they are...all of 'em... Reply
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Derni
Mar 15, 09 8:43 PM CDT
As the housing market goes..so goes the economy..and that my friends is not going too good at the present. Reply
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oldgoat
Mar 16, 09 3:56 AM CDT
Easy to say spend when you aren't worried about your job. For those that are concerned and those that already have lost their job it becomes a problem. You don't spend if you don't have it or are worried that you soon won't have it. Reply
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radnip
Mar 16, 09 4:25 AM CDT
"Spend baby spend" is how we got here. On credit, no less. "Save baby save" is how we can get out. And in a healthy way as well. Consumers who have savings will spend with confidence and their creditors can extend credit with confidence. One wonders why real wages did not go up at all in the last 8 years while the wealthy got much wealthier. Reply
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BackAgain
Mar 16, 09 5:26 AM CDT
I can not spend "hope or change" I need money and confidence that this country is not going to end up like Cuba, Venezuela or that odd ball California. Reply
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