Repost: The Recovery of Subversive Virtue

I am running a bit ragged this weekend, so I won't have time for a research-heavy post.  However, if you want ideas for a low-risk way of resisting a dominant oppressive system, please check out my post from a few years ago titled, "The Recovery of Subversive Virtue."  See you next week, God willing.

A Resistance Way Of Life

I'd like to make a post out of a few very good comments to my discussion of frugality as a means of nonviolent resistance.  Thanks to Aimee and CZBZ for your input.

Aimee's recommended ways to be subversive in modern America:

1) Maximize your food independence. For some of us, that means growing a lot of food or raising animals. For others, it means learning how to cook from scratch. If you are buying raw materials from your local farmers at the farmer's market, you maximize support of your individual neighbors and minimize your support of the giant agribusiness companies. You also save money and eat better.

2) Buy secondhand. Everything you possibly can. In this way you avoid encouraging the extraction of raw materials and extend the useful life of products. The embedded energy cost in, say, a new car or a new set of dining room furniture - even a new winter coat! - can be stretched over a greater time period and made to serve a greater number of people. For me, buying secondhand clothing is an ethical decision to avoid supporting the sweatshop industry. A subclause to this recommendation is: repair things that can be repaired. Get your fridge fixed a few times before you get a new one. Learn to mend clothes. When was the last time you saw a kid wearing jeans with knee-patches on them, unless they were sold that way to begin with? Take good care of your car. Do all the scheduled maintenance. Learn to do it yourself! Or ask your neighbor.

3) Maximize your energy independence. There are so many ways to do this - we brew biodiesel for our cars. But you might do it with solar panels or windmills, depending on where you live. Or do it by not owning a car and biking instead. Or by living in a smaller house and super-insulating. The sky's the limit.

4) Know your neighbors. Make friends. Develop mutually beneficial networks. Support each other. Lend your tools. Pool your resources. Why should every small-farming family along the same stretch of road own its own haying equipment, for example? That's absurd. Or its own tractor, even? Why shouldn't three or four families get together to buy one tractor instead of four? Does every household really need a chainsaw? No, not if you are on good terms with Bob down the way. And not if you are willing to lend his wife your sewing machine.

5) Most important of all: take charge of your education! Be informed! Get your information from diverse sources. Use your brain. Teach your kids. Go to museums and libraries while they still exist! Buy books (secondhand, of course!). Do not default on your obligation to educate your children, or yourself. It's too important. You can't leave it to the public school system alone. Talk about important issues with your spouse, your neighbor, your kids, your in-laws, your city councilman, your state senator!

6) For the love of God, VOTE!

CZBZ's Contributions:

1) Join families under one roof. This challenges communal skills and nourishes spiritual growth. Save landfills by purchasing one washing machine for four adults. My sister and her son moved in with me and now my adult daughter lives with me. That would be four washing machines (dishwashers, refrigerators, etc.) if we lived apart.

2) Find a church and fill your inner void with something meaningful rather than zombie shopping, what my daughter calls "retail therapy". Each of us has shopped-til-we-dropped and that's why we know how 'empty' it is---like an addiction.

3) Buy second-hand furniture or better yet, learn to build it yourself. Self-esteem grows as carpentry skills increase and there's nothing as wonderful as knowing your nephew almost cut his finger off making a bookcase for your second-hand books.

4) I love cooking from scratch (make my own yogurt and have saved thousands of plastic containers from the landfill). However, I don't judge people who lack the time to cook from scratch...it is very time-consuming but gives me a sense of purpose now that I'm old. (grin) And nothing brings community together quite like having a good cook in the family.

5) Save all the bones and table scraps for day-long boiled broth but don't tell your guests that you were gnawing on the chicken a few days ago. 

6) Learn to be thankful.

And here's an additional contribution of my own: a link to an article in Sojourners Magazine on the virtue of buying used (when you have to buy at all).  Also, if anyone wants to add to these lists, feel free to leave me a comment.

Have a good week!

The Return of the NINJA (or at least his cousin)

Beware – the NINJA is back! Or at least, his cousin. No, I'm not talking about some Oriental warrior dressed in dark, baggy clothes, some disciple of ancient methods of killing people barehanded, taught by some “college of violent knowledge.” Nor am I talking about the return of some indie, Asian-themed horror movie.

But I'm sure you will all remember the NINJA as I begin to describe him. He is the No Income, No Job, No Assets adjustable-rate, subprime loan foisted off on many working-class families by predatory lenders in the troubled years before our present economic collapse. He was seemingly run out of town in 2008 through the reluctant posturing of Federal lawmakers pushed by a wave of public outrage. But he now seems to be sneaking back upon us, albeit in a somewhat mangled form. Or maybe that's his one-armed cousin I see.

Observe the letter below:

I recently got this letter in the mail. I am sure it was sent to everyone in my neighborhood. (By the way, I live in a working-class neighborhood.)

At the top, you can see a statement in bold capital letters: “FHA BENEFITS UPDATE STIMULUS 2009.” Below are the words, “Passed by Congress and signed into law by the President.” The purpose of these words is to fool their readers into thinking that this letter is part of some Federal program. Next come the words, “HUD-approved Flagship Financial Group has been directed to:

1. Get FHA homeowners instant relief yadda yadda...

2. Yadda yadda...

This is a continuation of their opening ploy. “Flagship Financial Group has been directed...” By whom? By themselves and their own lust for your dollars? Certainly not by the Government!

Their “program” is available to anyone who has an FHA loan, with “No Appraisal, No Income Verification, No Credit Score Qualification, and No Out-Of-Pocket Costs,” according to the letter. This is not quite a NINJA loan, since it is meant for people with FHA loans who presumably are living in “starter” homes. Maybe we could call this a “NINJ” loan. The letter further advertises “4.375% Fixed Rates!” Although I don't owe any money on my house, I called their 1-800 number to ask about this 4.375% rate – just as a “private detective” exercise. When I asked whether this was a 30-year rate, the agent replied that due to present market conditions, they couldn't offer 30-year loans with this rate. However, they were willing to offer “hybrid” loans with this 4.375% rate for the first five years, then an adjustable rate afterward.

The agent's use of the word “hybrid” was quite creative (almost as creative as the use I heard this past week for the term “locally owned,” as I described in this post: "Localism" And Truthfulness). To me this sounds the same as the dishonest adjustable-rate mortgages with tempting introductory “teaser rates” pushed onto working-class families in the earlier part of this decade.

What all of this tells me is that in our present time of manifest economic distress, there are scam artists out there who are continuing to fleece ordinary people by playing on the crisis and on the coping strategies employed by these ordinary people. It is important to remember the basic coping strategies for these times, the strategies of frugality, which consist of paying down debts, becoming self-sufficient and living within one's means. Remember also that if something looks too good to be true, it usually is – and trying out things that are too good to be true may cost you everything you own.

One other thing this letter shows is how effective our lawmakers have been in reining in the excesses of the financial “industry” – which is to say, that they haven't done anything at all.

The Real Reasons For Frugality

Frugality has often been in the news over the last several months. Sometimes it is described in faintly negative tones by the mainstream media, who portray savers as a hindrance to the recovery of our economy. Then there are blogs whose authors try to make money from the frugality trend by offering financial advice and financial planning services. There are also people who define frugality as scoring the best deals on all the stuff being offered by our consumer economy. One peculiar article, titled, “America's New Frugality,” was published by Forbes Magazine in February of this year. It describes strategies “investors” can use to get at the savings of ordinary people who are now turning frugal. Some of their recommendations include investing in saving-and-loan institutions or bargain retailers like Amazon.com, since that's where the supposedly “frugal” people are now putting their money. (Source: http://www.forbes.com/2009/02/16/retailers-bank-stocks-intelligent-investing_0217_retailers.html.)

These attempts to “monetize” frugality would be really funny if the stakes weren't so high and the consequences weren't so tragic. Frugality should actually be viewed as a righteous response to scarcity, a choice to live gracefully with less. In fact, frugality is defined as “economy in the use of resources,” according to Merriam-Webster's Collegiate Dictionary, Tenth Edition. As we see how scarce those resources have actually become, we begin to see the real reasons for frugality.

That scarcity is what I want to address in this post. But I must warn you that for many readers, what I am about to say will seem like very bad news. So you may want to sit down (if you're not already). Put on some appropriate mood music, if you think you need it. If you can't think of any, let me suggest Turn To Stone by Joe Walsh. The version he has on his album, You Can't Argue With A Sick Mind, seems appropriately doomful.

Let's start by talking about the last four years. During this time the world saw crude oil prices shoot up from slightly over $30 a barrel to nearly $150 a barrel. The once-hot and ever-climbing real estate market crashed under an avalanche of foreclosures. Prices for food and motor fuel skyrocketed to unsustainable levels and people found themselves unable to pay for these things. The prices of raw manufacturing materials such as metals rose to such levels that thieves were stealing not only residential wiring and plumbing fixtures, but even manhole covers in some cities.

Many who reported on these things treated them as isolated events that seemed to happen without any good reason. But the proper way to view these events is as symptoms of a deeper underlying problem, signs of Something Terribly Wrong underneath. Something's terribly wrong with our present society, our present economy, our present economic arrangements.

Our modern global economy is based on debt and requires continuous growth to function properly. It is based on debt in the sense that the banks who control our money supply loan money into existence. Their expectation is that this money will be paid back with interest, which means that they expect that borrowers will grow ever more prosperous as time passes, and will thus be able to pay off their interest-bearing loans. But for borrowers to grow more prosperous, their individual “net worth” must continually increase. This means either that their wages must continually rise or that some other asset (like a house or a 401K) held by borrowers must continually increase in value.

The other side of a debt-based economy is that many of the things needed by individuals and businesses are so expensive that they can usually be bought only on credit, that is, by taking out a loan. This is true of large businesses like airlines, who borrow money to buy new jetliners, and for ordinary people, most of whom don't have the resources to pay cash for a house or car or expensive medical treatments. As long as the economy is expanding, these borrowers can reasonably expect to be able to repay their loans with interest.

An expanding economy depends on an expanding base of resources. When a resource vital to an industry becomes scarce, its price shoots up and the products made by that industry become more expensive – or scarce. Then it becomes impossible to grow that particular industry unless a substitute resource is found to replace the resource that is now scarce. Our problem is that a large number of resources have now become scarce. Peak Oil is the name for one such resource constraint we are now facing. But there are other resources that are running out – everything from inorganic phosphate fertilizers to industrial metal ores to coal, and much more. There are no substitutes for these resources. And we are using up renewable resources like fish, trees and arable land at a rate far faster than they can be renewed. A shrinking resource base means the end of the growth economy.

Not only have we hit resource constraints, but the earth can no longer safely absorb all of the wastes generated by our global industrial economy. It is now all but certain that manmade air pollutants are causing potentially terminal climate change, that it is being felt now in many parts of the world, and that within a few years we may all be feeling it. The ozone layer of our atmosphere is still being destroyed by manmade chemicals. There are now huge islands of plastic trash floating in our oceans. The pollution of our oceans is endangering the phytoplankton from which half of our oxygen is derived, as well as destroying fisheries. The destruction of our world by our industrial economy means the end of the growth economy.

All of these symptoms are behind the present economic collapse. For instance, the skyrocketing prices of basic necessities from 2005 to 2008 made it impossible for many debtors to pay off their loans, and made it impossible for markets to attract large numbers of new consumers. The crop failures caused by climate change-induced drought are a big reason why some food grains got expensive. These resource constraints and destructive consequences of our industrial system are not going away, no matter how many governments offer “stimulus packages.” The long-term direction of our economy is therefore downward.

Most of us must therefore give up dreaming of getting rich. It has been a popular dream, especially in America, but the truth is that there is no longer enough of the “official” economy left for any significant number of us to achieve that dream. Those who pursue the dream of getting ever-more stuff will hit the wall of resource constraints or of environmental damage. The pie is shrinking. The well has run dry.

Some may ask then about the present time in which many things have started to get cheaper again, like gasoline. This is not due to our finding new resource supplies, but due to the removal of buyers from the market due to economic collapse. The number of people who can qualify for a loan is shrinking; therefore, house prices are falling. The number of people out of work is increasing; therefore, fewer people are driving and gas prices are down. But oil production, to name one resource, is still falling because old oil reservoirs are still being depleted, and oil scarcity is about to make a reappearance. Any attempt to “revive” the economy will run up against the same resource scarcities that caused the present collapse. I would not view this as a good time to go into debt or run out and buy a new big truck or SUV. I have seen a few drivers of these new vehicles lately, some of whom still have the dealer tags on their vehicles, and I can only say that their actions seem dumber than a bag full of rocks.

Frugality is thus the wise, righteous and realistic response to our present times, a learning to live gracefully on less and a learning to live for something other than money and material advancement. It is not a way of getting rich! If anyone is thinking of frugality as a means of socking money away for later investment in some get-rich scheme, I've got one bit of advice: Fahgetaboudit. Those days are over, probably for good. I suggest, instead, that we view frugality as one strategy in a portfolio of strategies for preserving that good which can be salvaged out of this present difficult time, to hand it down to future generations. These are strategies well worth exploring, and there are some very excellent writers tackling these topics. Some of these writers are listed under my heading, “Other Wells,” on this blog.

For Further Reading:

• “Ocean Pollution: Destroying What We Need Most,” http://oceanpollution.blog.ca/2009/04/22/phytoplankton-and-oxygen-5985274/

• “Ocean Pollution Worsens And Spreads,” http://www.worldwatch.org/node/5474

• “Our Finite World,” http://gailtheactuary.wordpress.com/

• “Crude Oil – The Supply Outlook,” Energy Watch Group, www.energywatchgroup.org/fileadmin/global/pdf/EWG_Oilreport_10-2007.pdf

• “Climate Chaos Predicted by CO2 Study,” The Independent, 30 April 2009, http://www.independent.co.uk/environment/climate-change/climate-chaos-predicted-by-co2-study-1676411.html

The War On Frugality

The present energy and economic crises in the world have caused the return of a long-forgotten culture of frugality in the United States and other First World nations. The return of this culture is due to a grassroots movement among ordinary, everyday citizens who don't have many resources and who are tired of being taken for everything they've got by large corporate masters. This culture of frugality is gaining such strength and spreading so rapidly that voices in the mainstream media are now starting to comment on it, as seen in the following articles:

• “In Recession, Frugality Makes A Comeback,” Los Angeles Times, 13 January 2009, http://www.latimes.com/news/local/valley/la-fi-pennywise13-2009jan13,0,4887711.story

• “Making Frugality A Habit,” New York Times, 9 January 2009, http://www.nytimes.com/2009/01/10/your-money/household-budgeting/10cost.html

• “Ladera Couple Prospers By Living Below Means,” Orange County Register, 16 January 2009, http://economy.freedomblogging.com/2009/01/16/ladera-couple-prospers-by-living-below-means/

• “Frugal Is Cool In Cash-Strapped US,” The Guardian, 4 January 2009, http://www.guardian.co.uk/business/2009/jan/04/us-economy-thrift-barack-obama

It might seem to be a good sign that a movement toward sensibility and living within one's means is getting the attention of national media. Yet we must remember that the national media are owned, by and large, by powerful, rich corporatist masters with a vested interest in reviving and growing the “official” economy, which is first and foremost a consumer economy run by big business. Living within one's means, getting out of debt and turning one's back on consumerism is not good for business or for the official economy.

It is therefore no surprise that the masters of our economy have begun to attack this movement toward frugality and simple living. The attack has come in various forms, including media articles which talk about the damage done to the economy by people who refuse to rush out and buy things. Here are some samples:

• “Return to D.I.Y Ethic Erodes Service Businesses,” New York Times, 16 January 2009, http://www.nytimes.com/2009/01/17/business/17services.html?ref=business. The Times article contains this amazing quote: “All of these consumers could praise themselves for their newfound frugality in the midst of an economic downturn. But ever step they take toward self-reliance – each shrub they prune themselves, each cupcake they bake from scratch – hurts the people and small businesses that have long provided these services professionally.”

• “Hard-Hit Families Finally Start Saving, Aggravating Nation's Economic Woes,” Wall Street Journal, 6 January 2009, http://online.wsj.com/article/SB123120525879656021.html. Again, here's an amazing quote: “Americans, fresh off a decadeslong (sic) buying spree, are finally saving more and spending less – just as the economy needs their dollars the most.”

• For those who live in the United Kingdom, there's this: “This Recession Demands That We Employ Logic And Spend Our Way Out Of It,” UK Telegraph, 13 January 2009, http://www.telegraph.co.uk/finance/comment/rogerbootle/4218744/This-recession-demands-that-we-employ-logic-and-spend-our-way-out-of-it.html

• “Don't Be Frugal To Follow Recession Chic,” Marketplace, 17 December 2008, http://marketplace.publicradio.org/display/web/2008/12/17/wilkinson/. This is an archived radio show featuring Will Wilkinson of the Cato Institute, a right-wing think tank. One more amazing quote, from the show's introduction: “It's natural to want to penny-pinch when in a recession, but if you're not at risk of financial struggle, you may not need to cut back. Commentator Will Wilkinson says if you can, you should keep on spending.”

Here is rich irony! We are suffering an ecological and economic disaster caused by the decision by the masters of the global economy to hoodwink ordinary citizens and their governments to live beyond their means for as long as possible. These masters created an economy that is built on debt and that runs on credit and that devours anyone who can't make his payments on time. That economy has begun to crash, leaving millions of bloodied victims in the aftermath of its fall. These victims have been turned into the prey of the rich masters of this economy. Now that we ordinary people are seeing all of these things come to pass, we are trying to protect ourselves from being jacked any further by getting out of debt, living within our means and learning to be self-reliant. And you mean to tell me that the spokesmen for the rich are trying to make us feel guilty for this?!

But it gets even better. Not only are the masters of our official economy trying to talk us common people out of frugality, but they are even enlisting the help of the government to punish and frustrate frugal living. Cases in point:

• The Times of England recently published an editorial titled, “Punish Savers And Make Them Spend Money (http://www.timesonline.co.uk/tol/comment/columnists/anatole_kaletsky/article5469589.ece),” full of policy recommendations for the governments of the United States and Great Britain. One such suggestion is as follows: “Instead of reducing taxes on interest payments, the Government could tax all bank deposits and other risk-free savings. This would create a negative risk-free interest rate, encouraging savers either to invest in property, shares and other productive assets – or simply to save less and consume more.”

• The United States Government has passed a law, the Consumer Product Safety Improvement Act, that will require all thrift stores to test all toys and clothes sold for children for contamination by lead or lead-based paint, starting in February 2009. (Source: http://www.latimes.com/business/la-fi-thrift2-2009jan02,0,2083247.story) The testing is designed to be so expensive that thrift stores – thrift stores! – will be forced to stop selling secondhand children's clothes and toys because they will not be able to afford the tests. This law will also drive the makers of handcrafted toys and handmade clothes out of business, as well as shutting down other cottage industries. You'll just have to go to Mervyn's or Wal-Mart or Toys 'R' Us instead. After many people protested, the Consumer Product Safety Commission modified its proposed enforcement of the law to grant thrift stores a temporary reprieve, but the law is still on the books.

Note: This law is typical of recent legislation and executive orders passed or enacted by the Federal Government. Other examples include the National Animal Identification System, proposed ostensibly to “keep the nation's food supply safe from terrorists,” whose real effect is to drive small livestock farmers out of business. There are also the cumbersome FDA regulations recently enacted for small slaughterhouses, regulations that are so expensive to obey that only big agribusinesses can comply. The funny thing about these laws is that they don't protect us from contamination via products sold by big businesses with lots of money.

Make no mistake. Frugality is one tool by which ordinary, rank-and-file people can become self-reliant and can free themselves from exploitation by a corporatist system controlled by the rich. The rich masters of our present system understand this, and will do everything they can to wage war against the frugal and the self-reliant. But we're on to them. Do these things make you mad? Then let your congressman know that you've got his number.

I leave you with the following quote from the novel The Likeness, by Tana French. I read the quote for the first time on the Schneier on Security website. Here it is:

“Part of the debtor mentality is a constant, frantically suppressed undercurrent of terror. We have one of the highest debt-to-income ratios in the world, and apparently most of us are two paychecks from the street. Those in power -- governments, employers -- exploit this, to great effect. Frightened people are obedient -- not just physically, but intellectually and emotionally. If your employer tells you to work overtime, and you know that refusing could jeopardize everything you have, then not only do you work the overtime, but you convince yourself that you're doing it voluntarily, out of loyalty to the company; because the alternative is to acknowledge that you are living in terror. Before you know it, you've persuaded yourself that you have a profound emotional attachment to some vast multinational corporation: you've indentured not just your working hours, but your entire thought process. The only people who are capable of either unfettered action or unfettered thought are those who -- either because they're heroically brave, or because they're insane, or because they know themselves to be safe -- are free from fear.”