Last week, I was horrified to see two articles on the front page of The Phillipian that described different money-saving strategies recently enacted by Phillips Academy. While momentarily reducing Commons hours and moving the Directory online are not significant changes, they do reflect a culture that has appeared over the past few months both on this campus and in this nation. That culture of saving — analogous to a psychological variant of swine flu, but actually dangerous — has spread throughout the private sector of the economy, infecting consumers and companies with fear. Now it seems that I can’t walk down the street without hearing some formerly financially ignorant member of the proletariat rabidly discussing how they are now saving ten percent of their income and paying off all of their credit card debt. For once in their lives, they are acting responsibly. But they still don’t understand economics. Quite simply, when a company or consumer reduces their consumption, fewer things are bought. So, fewer things are sold, and generally at a lower price. The producers tighten their belts and fire some employees. Those newly unemployed people no longer have a steady income and are frightened they won’t be able to find a job in the competitive market. So, they spend less which only drives consumption lower and continues this vicious cycle until we enter another Great Depression. Just as the name suggests, depressions are not fun. So, by saving money in the midst of a recession, consumers actually hurt the economy. In short, our nation’s previous irresponsible behavior has put us in a hole. If any of us stop spending at the previous rate, the entire country could sink into a depression – which brings us back to good old Phillips Academy. By switching to an online Directory, did we put a printing company out of business? I don’t know, but it is undeniable that our former annual contribution of $15,000 to the economy is gone. Perhaps that money would have gone to fifteen employees of the printer who would have bought fifteen big-screen televisions and thus reached more employees, who would have consumed more goods. Phillips Academy has negatively affected the economy by trying to save money in this down cycle. We still can change our level of consumption, however, from that of a miserly old Scrooge to that of an irresponsible young American of yesteryear. Please, Phillips Academy and other American citizens or corporations, stop acting responsibly and saving money. Let us add a new motto, one that will be carried out in the spirit of non sibi: spend, spend, and spend some more. We can start saving next year. J.P. Harrington is a four-year Senior from Boulder, CO. tharrington@andover.edu
