Save or Spend?

Perhaps I’m a bit out of my league by talking about the economy, but I felt the need to write out my thoughts. For those who know me, you know this is a rare post. For those who don’t, this is a very rare post. I am not economically savvy in any way whatsoever. But I do read the paper.

A couple weeks ago there was an article in the Register-Guard talking about how America is out of the recession, but subject to an “echo recession,” where some businesses and other parts of the economy are still going to be hurting for a while financially. It discussed more than anything else, though, the effects on the average person. It said that in the employer-employee relationship, employers (and/or companies) are reluctant to hire because business isn’t demanding new job openings. And business isn’t moving because employees (or consumers) are reluctant to spend. Essentially, the “echo” effect is a catch-22.

And this got me thinking about how a catch-22 like this could ever be solved. Obviously companies aren’t going to lower prices too significantly otherwise they might not break even. And consumers aren’t going to spend a bunch of money that they don’t have; that’s how we got into this pickle in the first place. So it got me thinking that maybe (and again, I’m out of my league with economics) both ends ought to give a little. What I mean is, maybe companies/employers ought to lower prices a little while employees/consumers spend a little.

I don’t suggest anything unrealistic, either. Spending doesn’t mean emptying your bank account or placing a whole bunch on your credit card. All I suggest from the spending end of the spectrum is to eat out once in a while, go to a new movie here and there, and maybe buy a good book or some new music. From the selling end of the spectrum, which is the end that I’m less familiar with, perhaps cutting prices low enough that, although it won’t make the most profits, it might create a steady and stable amount of profits that down the road might warrant the demand of new employees.

Again, I’m probably talking nothing but foolishness, but I just had to get the foolish ideas out there. Take it or leave it, that’s just what I’ve been thinking about.

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Jeremy

Cherokee / Whovian / Sherlockian / Aspiring Auror / Lover of Jesus, Scripture, and creativity / MATS Student at George Fox Seminary.

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