The Economy of Guilt: Spending to Help Others
March 25th, 2009 by Nubby
Because of the harsh economic climate, people are attempting to cut back on expensive extras. But, The Wall Street Journal is reporting that an undercurrent of guilt is pushing some to keep spending, even when they don’t really need certain items and services. A sense of empathy is sweeping over some who know that others are closer to the brink than they are. Instead of donating to charities and food banks, people are choosing to spend their money on those whom they’ve developed close personal relationships with.
Even though her fridge is already full, one lady faithfully spends close to $50.00 a week at a local ethnic market because she likes the family that owns it and knows that they’ve both taken on second jobs to stay in business. Another lady purchased breakfast at a local Starbucks three times a week, running up $80.00 in bills a month simply because she liked the barista. And, another pays $60.00 a month to have a gardener she’s known for 10 years mow her tiny lawn, even though she recently lost thousands of dollars in a personal business.
This handful of individuals might not reflect the entire U.S. but what these people realize is that their communities depend on small businesses (minus the lady that handed over her money to Starbucks) and they treasure the personal interactions that have been cultivated. Behind someone providing a service is a human being and most customers appreciate that more so versus the drone of a faceless corporation.
Our budgets now don’t just reflect the needs of ourselves, but often the needs of others as well. Though, it should be noted that there is also a sense of self-interest that keeps people spending money on everyday luxuries. They know that if they (along with everyone else) stop handing over their money, these businesses might not survive the economic climate and be there to service them when things improve.
The companies and the customers they serve are even more dependent on each other right now. Of course, rationality and personal budgets need to stay in check, but if you have extra money, give some thought to where you’re spending it.
