
Way back in my early years (as the earth cooled and mastodons roamed the plains), I remember proudly pasting stamps in a little album that, when filled, could be redeemed for a U. S. Savings Bond. This was the remnants of a program started during WWII that made the purchase of bonds easier through the installment plan.
Most importantly, it created a sense of optimism and shared responsibility for school children. Even with pennies a week, we could do our part to help. We knew that our contribution, by itself, really didn't matter much - but every little bit helped. And, with hundreds of thousands of kids participating, the amount of cumulative impact was notable. We acted as individuals but the positive effects were from the group.
We usually think of the term "herd mentality" in negative terms because it infers massive group actions that seemingly go without individual motivation, direction or thought. If you've ever watched a flock of sheep bounding about a meadow in close formation, you've seen the frantic actions to mimic each other and move in amazing unison.
Sadly, we are seeing the most negative, most damaging type of herd mentality today and it is certainly not as funny to watch as the sheep. No, it is more likened to lemmings desperately shoving each other into the sea as more arrive at the shore.
We are all experiencing some level of economic distress; there's no need to debate this or illustrate it further. In fact, the amount of press coverage and commentary on this subject has apparently caused an acceleration in feelings of panic and lack of confidence.
We can understand and certainly empathize with a belt-tightening on the parts of those who have lost their jobs, are struggling to maintain home ownership or have legitimate reasons to fear further personal economic disruption. While this amounts to an alarming number of people, it is critical for us to realize: Only a small portion of our population is truly justified in "opting out" from participation in our interdependent consumer economy.
Yet, it seems that the vast majority of us have turned off the tap for nearly all discretionary spending. The people who are truly hurting are not making the situation worse - it's the rest of us who are seemingly part of a huge negative herd action that are the culprits.
We are acting as individuals, but the negative effects are from the group. And, we are making things worse on a daily basis.
Economists use the term "multiplier" to illustrate how economic and monetary policies often have positive effects beyond the amount of stimulus inserted. This makes intuitive sense. We can easily see that spending on nearly any type of good or service has a positive ripple effect as the effects are seen in concentric circles far beyond the initial buyer and seller.
We seem to have collectively forgotten that the effects of a negative multiplier are real and have disastrous consequences. Lack of spending on nearly any type of good or service has a devastating negative ripple effect far beyond the initial buyer and seller.
It is sometimes disheartening to see evidence that our collective attitudes are often lacking in faith, confidence and common sense. While few would doubt the intense light created by millions of lit candles, there seems to be a disconnect in understanding that this can only result from millions of individual decisions to strike a match.
It is your turn to light a candle. Those without the means are counting on you. If you have the ability to make purchases, you have a both an obligation to others and yourself to take individual action.
Our economic health is in your hands.