The Debtor Society...

It isn't everyday, but occasionally Utilityman columnist David Brooks comes up with a big hit, like his column on our culture of debt in today's NYT. I quote at length below, but take the time to read this column,

Each time an avid lender struck a deal with an avid borrower, it reinforced a new definition of acceptable behavior for neighbors, family and friends. In a community, behavior sets off ripples. Every decision is a public contribution or a destructive act.

And now the reckoning has come. The turn in the market punishes many of those seduced by financial temptations. (Sometimes capitalism undermines the Puritan virtues, but sometimes it reinforces them.)

Meanwhile, social institutions are trying to re-right the norms. The government is sending some messages. The Treasury and the Fed are trying to stabilize the system while still ensuring that those who made mistakes feel the pain.

But the important shifts will be private, as people and communities learn and adopt different social standards. After the Depression, a savings mentality set in. After the dot-com bubble, a bit of sobriety hit Silicon Valley. Now it’s the borrowers’ and lenders’ turn. As the saying goes: People don’t change when they see the light. They change when they feel the heat.

The expectation of the average American citizen to be able to consume more than they produce has gone on too long. We must face the reality that is we are spending too much on too many unneeded things and services. One of the first steps is to start weening the younger generation away from the "I deserve it" attitude perpetuated by the Boomers. I know many Boomers would disagree, but they may be the lost cohort with regard to fixing themselves, so I propose getting proactive with the young folks that still have a much better chance of understanding how to positively impact society through adding more than you take.