In general, we end up discovering that most things in life that feel good (eating sweets, drinking alcohol, staying up late etc. ) are bad for you 🙁 🙁 However, I’ve finally discovered something that feels good, is good for you, and for the economy – spending!! A man who spends contributes more to society compared to the man who mostly saves! It might sound counter-intuitive, but its true. Below are excerpts from the essay “In praise of idleness” by philosopher and Nobel Laureate Bertrand Russell that explain the concept.
“…..As long as a man spends his income, he puts just as much bread into people’s mouths in spending as he takes out of other people’s mouths in earning. The real villain, from this point of view, is the man who saves. If he merely puts his savings in a stocking, it is obvious that they do not give employment………..If he spent his money, say, in giving parties for his friends, they (we may hope) would get pleasure, and so would all those upon whom he spent money, such as the butcher, the baker, and the bootlegger……..”
If you still have doubts, check out “The paradox of thrift” in google. The paradox states that if everyone tries to save more money, then aggregate demand will fall and, in turn, lower total savings in the population because of the decrease in consumption and economic growth.
So friends, go ahead and take that extra vacation, buy that designer dress or the latest gadget. Make “security” and not “wealth” your goal. There are very few things in life that feel good and are good, spending is one of them 🙂 😉