Stein: We Should Be Buying Stuff Like Mad

Instead Of Saving Money This Holiday Season, Spend To Kick-Start The Economy

(CBS)  The economy is not good; we all know that. But there is something we can do about it this holiday season, and it's not just to hunker down and wring our hands. So says our Contributor Ben Stein:

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Okay. It's Christmas time.

We are in a recession. People are being laid off right and left. Homes are being foreclosed in huge numbers. Detroit is teetering on the brink of disaster. There is a wild, palpable fear running amok in the nation.

One of my best friends, a very successful engineer, told me her plan for the Christmas season was to spend as little money as possible. A number of my pals have said the same thing and retail sales bear it out.

People are planning not to spend. They're not spending.

This is not a good idea.

For those of us who still have our jobs, who still have a few nickels to rub together, we should be buying like mad.

Look, we're faced with John Maynard Keynes called "the paradox of thrift." If everyone is cheap and thrifty and doesn't spend, the economy slumps and everyone is poorer, not richer.

This really isn't rocket science. It's part of what caused the Great Depression.

So, for those of us who can still pay our mortgages, let's tip the doorman double, get cashmere sweaters and flat screen TV's for our kids, and trips to Palm Springs for our wives.

If we as a group (those of us who are still employed and have some money put aside) buy a lot this season, we could just kick-start this economy into a higher gear.

That would be a lot faster than the public works projects that Mr. Obama is talking about. We, our own little selves, could keep big retail chains in business and provide a lot of employment for sales clerks, just for starters.

Most of all, we can share with people and animals in need. When times get tough, donations to homeless shelters and animal shelters collapse. Those of us still able should really dig deep this Christmas and give all we can. That money doesn't get hoarded on Wall Street. It gets spent right now, helps the economy, and helps us feel as if we were slightly better people.

If we can afford it, now is not the time to zip up the wallet. Now is the time to get out there and buy something and keep our fellow Americans employed and our beloved animals fed. If we wait for the bureaucrats to do it, it will take too darned long. If we do it ourselves, it will get done.

[End-the-BS]

OK Ben - I know you are smart enough to recall all or most of the major economic down turns.
Maybe you recall which economic paradigm was the vogue at the time of these poor management decisions. You may even recall, if pressed, what political party was in the
White House.

I am not asking you to recall all the way back to William McKinley. Recall the years after
Herbert Hoover and the second coming of Mr. Hoover, or even just the years after WWII.

Now you, (a member in good standing with "Its the other guys fault-mommy" party) wish to
pass value judgements on an administration that has been in office for just a little longer than
a month, when both Richard Nixon and Ronald Reagan presided over 16 month recessions.

I have no particular reason to trust or believe you.
First, I'm not your mommy.
Second, I believe in truth supported by verifiable facts. I don't need fairy tales; I need constructive analysis.
Lastly, I have been retired for 15 years and that makes me too old for this B.S

It has always been human nature to blaming others for our failing. It now seems that we have
collectively become a no-acountability nation. Republicans had a head start in the
process but the Democrats are coming fast.

Oh, I have learned to refer to the President of the United States as mister, but I still call my doctor by her proper title; DOCTOR! Thank you for your instruction on how to refer to the President of the United States.

[End-the-BS]

OK Ben - I know you are smart enough to recall all or most of the major economic down turns.
Maybe you recall which economic paradigm was the vogue at the time of these poor management decisions. You may even recall, if pressed, what political party was in the
White House.

I am not asking you to recall all the way back to William McKinley. Recall the years after
Herbert Hoover and the second coming of Mr. Hoover, or even just the years after WWII.

Now you, (a member in good standing with "Its the other guys fault-mommy" party) wish to
pass value judgements on an administration that has been in office for just a little longer than
a month, when both Richard Nixon and Ronald Reagan presided over 16 month recessions.

I have no particular reason to trust or believe you.
First, I'm not your mommy.
Second, I believe in truth supported by verifiable facts. I don't need fairy tales; I need constructive analysis.
Lastly, I have been retired for 15 years and that makes me too old for this B.S

It has always been human nature to blaming others for our failing. It now seems that we have
collectively become a no-acountability nation. Republicans had a head start in the
process but the Democrats are coming fast.

Oh, I have learned to refer to the President of the United States as mister, but I still call my doctor by her proper title; DOCTOR! Thank you for your instruction on how to refer to the President of the United States.

[trixielady]

Ben Stein is disrespectful to not refer to our President as Mr. President. Instead he calls him Mr. Obama. This is an obvious slight and although he is his own commentator it reflects negatively on CBS.

[leahroach]

Ben Stein: You missed the real reason people are not spending- Everyone's 401K funds have evaporated. We were all told to invest in 401 K's and now we all realize we will need to work another 20 years to make up the loss. Everyone is broke- no one has savings for retirment. BEN you missed the story- go back and do your research.

[human73-2009]

Ben Stein and his boy BUSH got us in this mess. Remembre? buy amerikan! He''s one of them!!!! Oh, by the way, remembre the 1st rebate? I am still waiting for my lincoln!!!!!!!!!!!!!!!!!

[pepperwood2]

Ben is part of the Wall Street & Madison Avenue Elite. Of course, the conventional wisdom that eminates from Cooperate America is to align themselves with the Elite in Congress.

That is to pass legistlation that will help con & sucker the consumers to Spend more becoming further in debt. After all big Banking, Mortage, Credit, Auto Companies are depending on the large amount of interest that we the consumers give them with each monthly payment.

All this is made legal, of course, by our Liberal Congress. They do quite well receiving large Corporate Contributions plus passing themselves a big pay raise. They all get together trying to come up with ways to get the consumer to SPEND, Spend, spend. This is called the American Way.

The era of no accountability or responsibility for Cooperate America or Congress. Just bail Barney & the rest of them out then go back to doing the same thing. Ben is just doing what Wall Street pays him to do. Promote the system & the hex with the Consumer.

[toolgirl13]

You people are stupid who have wrote on here. You just don''t get what he is saying! Yes a lot of things are made in China! How about the stuff made in the USA! Turn over the products and take a look please buy the ones made in USA. Made in China is till supported by the Americans. How let me explain to those people who are stupid. The American goes over to a factory,employs the factory makes the stuff. Ships over here on a USA ship, USA people work on the ship, goes to a USA port,goes on a USA truck,goes to a USA store. Then he needs a USA rep agency, the rep has relations with USA buyers.. the product goes into a store and wala gets bought buy a consumer. if none of that would happen look at how many peoples lives it just effected! I am here to tell you though. There are still manufactures out there in the USA so start supporting them before they go away.I am in the Hardware paint industry. I rep a lot of of lines that are made in the USA and sell to the local NW stores. If everyone quits spending those of us who can this is not going to turn around. I don''t make much 40,000. I try to help as much as I can. I pay cash for everything. Go to you local meat market, go to your local hardware store ban the big boxes,buy from the local people in your town. he is not saying go pay 800 dollars fro a dress. Find someone who can make clothes for you, find someone to clean your house. It is called pay it forward people!

[y2signup]

Please no more Ben Stein, the guy is a putz. Here is a Republican who can''t admit his party caused this huge problem. And if he would just pay more taxes we wouldn''t have this problem. Why should the middle class bail him out spending money. Raise the tax of the top 1% back up to 50% and all would be solved. Buck up Ben and pay your fair share.

[lorwillow]

I think you are all missing the point he made. What I heard was that he was encouraging those folks that have extra money to spend, spend, spend!!! That way, they help the economy is helped out until such time that the rest of us can start spending again.
I commend him for what he said, and hope that others take his advice!

[wardoglrs]

You know what Ben you really shouldn''t be in this line of work. Your confusing people with your Dumb Downed economics Just remember one thing Ben the Money that your speaking of is counterfeit it has no value that''s why the world is pulling away from the dollar and that''s why America is going to look like a 3rd world country and a poor rating for trust. And trust is everything

[wardoglrs]

Ben your not seeing the picture:
For those of us who still have our jobs, who still have a few nickels to rub together, we should be buying like mad.

Why so the government can take it too and give it illegally to the banks? Whats the point Ben?

And why are you pushing people to spend that''s what got us into this mess Mostly bad credit.

Ben speaks from a Keynesian Economics point of view which is a "fractured system banking" Ounce you look it up then you will understand whats really going on behind your backs

[hitoyou11]

Things are "NOT" going get "BETTER" under Obama Osama. He will steal from all of us. More so then BUSH

[hitoyou11]

Everything buy cars. Do not buy a car from the big 3. They are made by the low UAW.

[catlady1412]

Ben Stein''s idea is not entirely wrong, we should do some spending on any USA-made products we can get and eating out, especially in locally-owned restaurants. However, Ben''s overall conservative stance is soooooo over anymore that nobody is going to listen to him. He is not the person to deliver this message. Perhaps his former sidekick Jimmy Kimmel would be a better choice?

[jd2408]

Come on America, spend all the money you can because China is hurting and Corporate America is closing the outsourced jobs that they sent there. Don''t worry about your next meal or losing your home. JUST SPEND.

[lloydbest1]

"The richest 5% own 55% of America''''s wealth. That translates to about 28 Trillion dollars." Posted by LloydBest1 at 04:31 PM : Dec 22, 2008

In case anyone wonders wher I got those figures; here''s the source:
"Currents and Undercurrents: Changes in Distribution of Wealth, 1989-2004"; a report from the Federal Reserve Board. That same report estimates the top 5% of us own about $2.4 million in net assets (as of 2004). Since the recent economic hit also affected many of the wealthy, I dumbed that figure down to a little under $2 million..
Multiply that by the 15 or so million who qualify as top 5 percenters and we get 28 or a little more trillions.

[lloydbest1]

"...We should spend AFTER we seize the assets..." Posted by noloyalisti at 02:38 PM : Dec 22, 2008

Hmmmm. Not a bad idea, that. The overly wealthy would be doing the service that Ben suggests all of us do.
No one really has any idea where all this money our leaders have earmarked is coming from. Nor is there any real assurance it will ever get paid back..
A moments digression, if you please. I firmly believe that once one has acquired a level of material well being sufficiently beyond that of basic need, any additional fruits of one''s labor now belong to the common good. I am not alone.
There is a history of advocacy for wealth distribution that goes back several thousand years. In fact, both Jesus and Mohammed have harped repeatedly on the issue of giving away one''s wealth to have any chance of finding favor with God.
Indeed I don''t go anywhere near as far as either one of them did. I think the rich can (and should!) remain relatively rich. But having said that there is also no justification for nine, ten, or eleven digit private fortunes in the face of the financial peril we face today, either.
Those who have that level of ability can help out a lot by donating a small percentage of their asset base; it needn''t be much. The richest 5% own 55% of America''s wealth. That translates to about 28 Trillion dollars. Giving up just 10% of that haul will yield a little under 3 Trillion and, IF SPENT WISELY, would give America a tremendous start on our economic comeback.

[noloyalisti]

Sorry Stein, the terrorists already won. In fact we elected them for pResident and vice-pResident and for Congress. We should spend AFTER we seize the assets of those who made our on the commons. Like Stein and many corporate CEOs. These are the people who are part of the problem. Let''s make them part of the solution.

[divitius]

It was Stein and his corporatist neocon ilk that put us in this mess in the first place. Hey Ben, gimme some money and I''ll spend it! Jerk.

[eggy1620]

Those who still have jobs have inherited the work of those who no longer have jobs. Thus, they have money to spend, but no spare time in which to spend it.