I often appreciate a blogger’s point of view and manner of communicating - while totally disagreeing with their perspective. A good example is Kevin Press’s recent post on Today’s Economy- The New Frugality: I’m not buying it.

Press cites recent items in the Economist and Time describing the New Frugality, then goes on to point out that - devastating as the downturn is to people that are directly impacted through job loss - most Canadians won’t in fact lose their jobs, and will therefore not significantly alter their consumption, long term.  He’s wrong.   Here’s three reasons why;

1. The Markets. Whether you lost your job or not - billions of $ have been taken out of the economy.   We all know people whose  pension savings have been creamed.  TSX is about 35% off last summer highs.  Thousands of Canadians have fundamentally reset their retirement plans.  Many are resigned to putting off retirement by many years, others are acknowledging the need to supplement retirement income with part-time jobs, and - you better believe - almost all have rethought their standard of living (pre and post-retirement).   And as far as retirees are concerned - even if their wealth was mostly in investment certificates, savings accounts, bonds and dividend funds - you know they’re tightening their belts when they consider their yields in this new reality.
2. The environment.  We’re consuming our planet to death.  And despite the naysayers - the awareness of this inconvenient truth is emerging.  The linkages between climate change and consumerism are starting to surface.  For instance, The Story of Stuff exposes the connections between a huge number of environmental and social issues, and calls us together to create a more sustainable and just world.  I think this is sinking in.  I often visit my old school and talk to students at Rotman.  They get this, they understand that it’s just not cool to buy, consume, and dispose.
3. The Social Internet.  We are becoming a much more connected world.  It’s a lot harder to be ignorant of stuff that happens to other people - whether it’s jobs being lost in Oakville or deforestation in Brazil.   Ideas and opinions can be mobilized much more rapidly in a twittered world.   Look at how quickly an idea spread - like the fundamental wrongness of multi-million dollar payouts to executives of bailouts.   Obama got elected on the back of social media.  Technorati lists 7024 blogs about frugality.  Yes we can.

I believe that the crash of 2008 will indeed signal a fundamental change in social and consumerist behaviour.   Already it isn’t right for the few to consume in a wasteful way without thought on the impact for the many.  And soon, it won’t be fashionable.