text /// Chris Rusak

12-16-08

Economy.

Some quick thoughts to share, gathered from a cup of green tea…

The Federal Reserve is suspect to set interest rates lower than they have been for a long time, lower than even their lowest after the September 11th fiasco. One-half percent. And this time, they are this low because we did it to ourselves. Whereas back then, it was because nobody was spending, now the rates are necessary because nobody can spend.

Somehow, somewhere, someone should see that the consumers have control here. We can control the economy as much as the banks can. It is a two way process, and as much as conspiracy theorists and anarchists would like to believe that the we’re (the consumer class) are gripped by the balls… we are, but by our own fists of the addiction to buy, buy, buy.

When WE stop spending, Visa and Mastercard suffer from lower interchange fees from card usage. Then banks suffer because they lose the transaction fees and interest from debt pile up (worse only to defaults post facto, the problem we’re swimming in now.) Businesses suffer from lost sales, but what does that incur? HEY! A 1.9% drop in consumer prices in ONE MONTH. Largest decline since 1947.

If someone said to you, “hey, want 2% back of EVERYTHING you buy?” Doesn’t this sound like a cash-back rewards program?

Sure is… except to get this bonus, DON’T SPEND. Let prices fall. Do you suddenly see why banks offer a cash back program? Spend spend spend.

Now, people stop spending because of “fear of the economy.” Buy, why do people buy?

Fear they are not good enough. (Health and beauty marketing campaigns.)
Fear of loss. (Insurance, payment protection, extended warranties, etc.)
Fear of harm or pain. (Over the counter medicines, security systems, weapons.)
Fear of missing out on opportunity. (Houses in a “buyer’s market.” Where’s that buyer’s market now?)
Fear of judgment. (Handbags, haute couture, designer jeans, $50 t-shirts.)
Fear of having the smallest penis. (Hummers.)

Granted, we can’t stop the conduit of trade completely. We need to eat, we need to keep businesses running to keep the lights on, we need to partake in the objects of creation from artists and designers alike.

I digress… and hope you take the rest of this perspective to a plateau of economic inspiration and optimism yourself. Artists around the world should be working their asses off now, knowing that an economic rebound is ahead. Build your inventory! Buy supplies now for their lowest prices and make, make, make. Create instead of consume, for living simply will focus your ideas onto sufficiency and not need.

There’s gonna be a “something-boom” around the corner. We’ve had dot-com, we’ve had housing, who knows what is next. But I assure you, there are investors waiting for it to happen. Artists prepare yourself to act like the investors. Let’s be the creative directors and drive art to those who will stimulate our niche economy.