A story on NPR’s Morning Edition showed a new side to the spend-or-save dilemma. Apparently, the United States and Finland are at odds over whether we should shell out the $4 for that latte, or brew our own coffee at home. Posters in Finland show an angry-looking piggy bank with the text “Don’t Feed the Recession.” In other words, spend your money – so that the economy can recover.
A U.S. ad, however, also shows
a piggy bank, but urges the exact opposite: "Feed the pig." In fact,
they’ve launched a Web site with
commercials saying just that – save money.
So what’s a person to do? While spending money, in theory,
can seem like a good idea – the money you shell out for a coffee or dinner out
can help to keep the restaurant in business, providing paychecks for other
people which can be spent on other goods, the spend-to-save-the-economy theory
only works if everyone does it.
Saving, however, can be wise not only individually but for
banks as well. The money can then be loaned to other individuals or businesses,
thereby growing the economy.
So what do you think the solution is? What are you doing personally in this economy?