Slowdown in American Economy Could Be Good for the Environment

In America, consumerism is rampant, no doubt about it. We’ve been bred to buy, buy and keep on buying even if you really don’t need anything else. We constantly ‘upgrade’ our stuff. Decades of cheap credit have allowed this monster to continue growing at a rapid pace, with people spending far more than they can afford with the plan of dealing with it later. So, now that the economy is finally slowing down and people are buying less, what does it mean for the American lifestyle, and for the environment?

From U.S. News & World Report:

The average American with a credit file is responsible for $16,635 in debt, excluding mortgages, according to Experian, and the personal savings rate has hovered close to zero for the past several years. High gas and food prices are causing real incomes to fall. Even worse, rising inflation will probably cause the Federal Reserve to start jacking up interest rates once the credit crisis on Wall Street has passed, tightening credit even further. “We’re shedding jobs, it’s much harder to borrow, and what used to be capital gains are now capital losses,” says Scott Hoyt, senior director of consumer economics at Moody’s Economy.com. “There’s no source of funding for spending.” Because many of us won’t be able to as easily use our homes as ATMs, Hoyt expects to see an upward trend in saving and slower growth in consumer spending, compared with the binge of the past decade.

While some people view this as devastating – seeing their frequent trips to the mall, electronics purchases and kitchen renovation plans going up in smoke – others see it as our salvation. Young people, in particular, are learning to do more with less, and that could mean less waste down the road. Parents are teaching their kids that making smart financial choices can help the earth, too. Frugality and things like buying secondhand, growing your own vegetables and nixing bottled water complement each other perfectly. It will be interesting to see whether Americans take this opportunity to be smarter about their money and the earth, or go back to their old habits as soon as things are stable again.

Link [U.S. News & World Report]
Photo credit: Flickr user orphanjones

Buy Nothing but Necessities for a Month

We’ve been getting word from various sources around the web of people with a common goal: trying to purchase nothing but absolute necessities for one month. Not only would it help you save money, but it could really teach you a lesson in how much unneeded junk you purchase without really even thinking about it.

Necessities are basically the things you can’t get by without – rent, utilities, credit card payments, student loan payments, basic groceries, medicine and basic toiletries (i.e., no gourmet goods or cosmetics). It’s basically a month without unnecessary shopping – no DVDs, electronics, knick knacks, home décor, Starbucks, and all those other little things that we tend to drop money on every now and then. Depending on income, participants have reported saving as much as $600 in a single month, which would add up to an awful lot of money over a year’s time if you wanted to stretch it that far.

I had my own little experiment with a ‘buy nothing month’ earlier this year, albeit unintentionally, during a dry month while in the midst of changing jobs. One thing I can tell you is, once you realize how easy it is to get by without all of those little purchases, it’s really easy to keep it going. Afterward, I was far more conscious about thinking before I buy – as in, “Do I really need this?”

MSN Money reports that in their own investigation of the ‘buy nothing month’ experiment, some people reported feeling deprived:

Concerns about feeling deprived were pretty common, at least in the early days. Many participants confessed they often spent money to ward off boredom or to lift a bad mood, or to socialize with friends, and wondered how they’d cope without that outlet.

A New York woman, Vanessa, dropped out early in the experiment because continuing, she wrote, would have meant being too lonely. New Yorkers socialize by going out to eat and drink, rarely entertaining in their shoe-box apartments.

In truth, there are so many free things to do out there. Go for a stroll. Read a book in the park. Get up close and personal with your community.

Buying stuff isn’t bad – but losing that zombie-like tendency to unthinkingly put things we don’t need would certainly be worth a month of participating in the experiment. It really lifts you out of that consumer mentality of buy, buy, buy – which would be a good thing for all of us.  Try it for yourself this month!

Link [MSN Money]
Photo credit: Flickr user sylvar

We’re Living in the Age of Consumption

Wow – consumption spreads fast nowadays.  Where our grandparents and great-grandparents once purchased mostly necessities, we’re being bombarded constantly with products.  We’ve got nonstop flashing neon lights that say buy, buy, buy! There are so many more things that we ‘need’ now.  Take a look at this chart put together by Visualizing Economics (click image to see a larger version) and you’ll get an idea of how much things have changed in a century.

Some would argue that we’re wealthier as a society, and that’s generally true – but are we truly better off for it?  Is the planet better off for it? Some would argue that all of these products have made our lives easier – and indeed, many of them have.   It just makes you wonder where things are headed in the future – will we cut back, or will the list of stuff that we ‘need’ continue to grow?

It’s kind of frightening imagining this chart getting more and more crowded with stuff as the years continue to pass.

Link [Visualizing Economics]

Watch the Wal-Mart Virus Spread Across America

Walking through the crowded, narrow aisles of Wal-Mart, you may be inclined to keep your arms as close to you as possible and avoid touching most surfaces. After all, the place is so crowded at any given time, it wouldn’t be surprising if you took home more than just a $20 stereo. So, it stands to reason that Flowing Data’s map of Wal-Mart’s spread across America between 1965 and 2007 looks like a nasty green virus taking over the country.

It’s kind of mesmerizing to watch, really. It starts out slow and then picks up really quickly. I love that you can zoom, I just wish it had a play bar so you could pause, step ahead, go back, etc. Wal-Mart truly is a plague upon the land.

Visit Flowing Data to see it for yourself.

Link [Flowing Data]

Going Green? Blue Might be Better

So, you feel as if you’re already reducing your carbon footprint in every way possible. Recycling, buying organic produce from the local farmer’s market, taking public transportation and buying fewer disposables. Is it enough? You might think so, but others would disagree: particularly, those who subscribe to the ‘BLUE movement’.

Before you start groaning about color-labeling and wondering what people will come up with for orange, yellow and purple, check out what the BLUE movement is all about.

Here’s how former Sierra Club President Adam Werbach described it to Gristmill:

People who are part of the BLUE movement aspire to make a difference through the people and products that touch their lives. It encompasses green issues like protecting our last wild places and reducing our output of CO2, but it also includes personal concerns like saving money, losing weight, and spending time with friends and family.

The BLUE movement challenges you to improve your life and increase your effectiveness in making the world a better place. It’s not just about living green, it’s about ‘PSP’ or ‘Personal Sustainability Practice’: actions you take regularly that are good for you, the community and the planet. It takes eco-consciousness one step further into the realm of total self-improvement.

People are urged to translate PSP into their every day buying practices, using consumer power to initiate positive change. Revolution starts with the individual, and the BLUE movement wants us all to fight the power one smart purchase at a time.

Seems to me like the BLUE movement is a natural extension of being ‘green’. Anything that might help people vote with their feet - or, more specifically, with their wallets - is a good thing in my book. Be more conscious about what you buy - it’s so simple, and it has the power to spur real change.

Link [Gristmill]

Photo: Flickr user loop_oh