My economic point of view is from ground level. It is a point of view sometimes described as “agrarian.” That means that in ordering the economy of a household or community or nation, I would put nature first, the economies of land use second, the manufacturing economy third, and the consumer economy fourth.
A properly ordered economy, putting nature first and consumption last, would start with the subsistence or household economy and proceed from that to the economy of markets. It would be the means by which people provide to themselves and to others the things necessary to support life: goods coming from nature and human work. It would distinguish between needs and mere wants, and it would grant a firm precedence to needs.
A proper economy, moreover, would designate certain things as priceless. This would not be, as now, the “pricelessness” of things that are extremely rare or expensive, but would refer to things of absolute value, beyond and above any price that could be set upon them by any market. The things of absolute value would be fertile land, clean water and air, ecological health, and the capacity of nature to renew itself in the economic landscapes. The cultural precedent for this assignment of absolute value that is nearest to us probably is biblical, as in Psalm 24 (“The Earth is the Lord’s, and the fullness thereof . . .”) and Leviticus 25:23 (“The land shall not be sold forever . . .”). But there are precedents in all societies and traditions that have understood the land or the world as sacred—or, speaking practically, as possessing a suprahuman value. The rule of pricelessness clearly imposes certain limits upon the idea of landownership. Owners would enjoy certain customary privileges, necessarily, as the land would be entrusted to their intelligence and responsibility. But they would be expected to use the land as its servants and on behalf of all the living.
The present and now-failing economy is just about exactly opposite to the economy I have just described. Over a long time, and by means of a set of handy prevarications, our economy has become an anti-economy, a financial system without a sound economic basis and without economic virtues.
It has inverted the economic order that puts nature first. This economy is based upon consumption, which ultimately serves not the ordinary consumers but a tiny class of excessively wealthy people for whose further enrichment the economy is understood (by them) to exist. For the purpose of their further enrichment, these plutocrats and the great corporations that serve them have controlled the economy by the purchase of political power. The purchased governments do not act in the interest of the governed; they act instead as agents for the corporations.
That this economy is, or was, consumption-based is revealed by the remedies now being proposed for its failure: stimulate, spend, create jobs. What is to be stimulated is spending. The government injects into the failing economy money to be spent, or to be loaned to be spent. If people have money to spend and are eager to spend it, demand for products will increase, creating jobs, industry will meet the demand with more products, which will be bought, thus increasing the amount of money in circulation, which will increase demand, which will increase spending, which will increase production—and so on until the old fantastical economy of limitless economic growth will have “recovered.”
But spending is not an economic virtue. Miserliness is not an economic virtue either, but saving is. Not-wasting is. To encourage spending with no regard at all to what is being purchased may be pro-finance, but it is anti-economic. Finance, as opposed to economy, is always ready and eager to confuse wants with needs. From a financial point of view, it is good, even patriotic, to buy a new car whether you need one or not. From an economic point of view, however, it is wrong (and unpatriotic) to buy anything you do not need. Only in a financial system, an anti-economy, can it seem to make sense to talk about “what the economy needs.” In an authentic economy, we would ask what the land, what the people, need.
From an economic point of view, a society in which every school child “needs” a computer, and every sixteen-year-old “needs” an automobile, and every eighteen-year-old “needs” to go to college is already delusional and is well on its way to being broke.
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