Why Thrift Matters!

The rise of America’s debt culture has fueled impressive levels of consumption but proven to be unsustainable. Combined with poor oversight of risky credit products, including mortgages and credit cards, it played a role in the advent of the Great Recession. A group of scholars have been convened by the Institute for American Values to consider the question of what comes next. What’s the upside to welcoming the return of a culture of thrift?

In their new report, they remind us that “thrift is the ethic of wise use. The root of thrift is thrive.” There are some values at play here, such as industry, frugality, and stewardship, which may generate collective benefits if adopted widely. As the authors of the report write:

Indeed, for much of our history, thrift has provided a way forward for aspiring Americans of every rank and description. It has pointed the way to saving and security… It has urged us all to conserve, repurpose, save, act as good stewards of small amounts and sums, and protect our natural environment… For generations, thrift was a core value in creating a wiser citizenry and a more broadly shared prosperity.

In making the case for thrift, the report lays out 20 propositions that paint the picture of what a new thrift culture can do for our families, our neighborhoods, our economy, and our planet. Here they are below in brief, but check out the book for a fuller discussion and be sure to glance at the long and diverse list of signatories (of which I am but one).

Why Thrift Matters: 20 Propositions

For You and Your Family

1. Thrift helps families to achieve financial peace of mind.

2. Having a financial plan is linked to overall happiness and greater self-esteem.

3. Thrift teaches habits associated with higher academic achievement and success later in life.

4. Thrift provides a route to greater self-sufficiency during uncertain times.

5. Thrift plans for the future.

For Your Neighborhood

6. Thrift inspires neighborly cooperation and social trust.

7. Thrift promotes wise stewardship of property.

8. Thrift cultivates generosity.

9. Thrift institutions offer alternatives to high-interest lenders that hurt neighborhoods and the people living in them.

10. Thrift stores embody the thrift ethic and benefit their local communities by providing affordable prices, funds for charity, and jobs.

For the Economy

11. Savings spur economic growth.

12. Positive household savings rates are good for the nation.

13. Thrift encourages an ethic of hard work, which contributes to economic growth and productivity.

14. Thrift fosters broad economic opportunity.

15. Thrift creates new savings institutions and ideas.

For the Planet

16. Thrift reduces waste.

17. Thrift inspires creative reuse.

18. Thrift encourages recycling.

19. Thrift conserves natural resources.

20. Thrift generates green growth.