Along with your daily dose of dismal economic news, consider this: any economic stimulus package that Congress passes will carry with it an expectation that people spend a good portion of their earnings. On stuff. That expectation creates a conflict between the need to drive economic growth through consumption, on one hand, and environmental sustainability that depends on lower consumption, on the other. But as President Obama said during this week’s press conference, “This economy has been driven by consumer spending for a very long time. And that’s not going to be sustainable.” We need a better way.
Enter the concept of the experience economy, in which growth is fueled by spending not on goods but rather experience. In this scenario, government spending creates jobs to build not only transportation and energy but also cultural infrastructure, which includes theaters, museums, art galleries, libraries, parks, and, of course, schools. People are encouraged to spend less on stuff and more on experience: cooking great (organic) food, education, travel, studying languages, dancing, attending a concert or a sporting event, reading, gardening, etc. All these experiences can feed the economy—if the economy is oriented toward promoting experience over ownership. What’s more, few activities in the experience economy impact the environment to the extent that buying and, ultimately, throwing away stuff does.
But for the experience economy to work, people must have time to experience. A shorter work week would give them time and would vastly improve quality of life. Parents could spend more time with their children, doing homework, or attending a show at one of those new galleries or theaters. A shorter workweek will also pay dividends in the form of lower healthcare and commuting costs. And commuters—and their cars—would spend one fewer day on the road; the potential environmental benefit could be significant. See Dean Baker’s excellent piece for more on the shorter work week.
By spending less on stuff, people might be more inclined to invest some of their earnings in developing economies. Instead of tchochkes, buy a goat or beehive in your client’s name, and an entire Bolivian family can begin to feed and clothe itself and educate its children. Or peruse the Microfinance Gateway to find a micro-lender that suits your values.
A likely fringe benefit of the experience economy is happier, and ultimately, healthier, people (again, lower healthcare costs). How many people hate their jobs but can’t earn enough money doing what they love? In the experience economy, you would have more time to play your cello and, what with those new concert halls, might even earn a living at it.
Consider that much of the past decade’s economic growth was illusory—based on inflated asset values coupled with rampant borrowing and spending—and the experience economy begins to make even more sense. For when you get right down to it, shouldn’t the value of our society and ourselves be measured by what we pass on to our children.
And I’m not talking about that Marc Jacobs handbag.
