High profits are the road to ruin - Adam Smith

The Rev. Bruce Johnson of the Unitarian-Universalist Congregation of Duluth gave a sermon this morning on consumerism - "Consuming Religion". In it, he used "free markets" in the corrupt sense, that is, business is free to do whatever it wants, free of regulation. I knew that Adam Smith used "free market" only once in "Wealth of Nations"; I wondered how often he used "regulation".

Well, I gave up counting, but I noted that he treats regulations as both good and bad. One of the good senses is that regulations prevent abuses. One of the sections that mentioned regulation discussed the three classes involved in the economy - one does nothing and keeps getting richer, the second is necessary to get things started, and the third actually does the work. Here is what he wrote about the second, those who supply the capital (stock in the sense of materials, equipment, and workplaces).

"It is the stock that is employed for the sake of profit, which puts into motion the greater part of the useful labour of every society. The plans and projects of the employers of stock regulate and direct all the most important operation of labour, and profit is the end proposed by all those plans and projects.  But the rate of profit does not, like rent and wages, rise with the prosperity, and fall with the declension of the society. On the contrary, it is naturally low in rich, and high in poor countries, and it is always highest in the countries which are going fastest to ruin."

Is "Consumerism" such a bad thing?

So-called conservatives and so-called progressives seem to deal in sweeping generalizations rather than looking at the sweeping scope of ideas and facts.

"Slow Consumption" is a case of looking at one facet of American life and assuming that it holds across all of American life. (Utne Reader, March April 2010)

Yes, there are cheap goods that wear out and that we toss and replace. But there are also many things that last and last.

Among these are the modern automobile. I am so glad that they don't build them like they used to. I bought a new 1997 F-150 truck in May 1996. In the fall of 2009 somebody asked me if it was new. Only a few times in those 13 years did I cancel a trip because of a problem. But it was undrivable only once; it had a flat tire. I traded it in this fall for an SUV and later met the buyer; he was pleased with his purchase.

We have furniture that is over thirty years old. We live in a house built in 1922. We have appliances that are less than ten years old, but mostly because their energy consumption is so much less; that is, the new is truly better.

Yes, we have gone through many coffee makers. But we wouldn't have to do so if we were willing to accept a little less convenience. We could buy a stovetop percolator for less than $15. If we kept it clean it would last for decades.

Film cameras lasted for years and years. I had an SLR for over 30 years with few repairs. But then digital cameras came along. They are so much more convenient and they are so much less expensive to operate. I can take the equivalent of over twelve rolls of film on a single memory card, over and over again. Think of all the chemicals that are not needed and that do not go into our water supply. I put the photos on my computer and never use prints except for display on a wall. Think of all the trees that are "saved".

Ah! computers! They are not long lasting. Not because they are not durable. I have a couple in my closet that are over ten years old that still work. But I don't want to use them; they cannot access all the information that is out there, including the online version of the Utne Reader.

Why? Because of Magree's first law of computing: the capability of software rises to meet, if not exceed, the capability of the available hardware. And hardware capability will keep increasing rapidly over the next several years.

Why? Because of innovation. What was known about computers in 1984 is a small fraction of what is known about computers now. Ideas build on ideas. We have a precursor in automobiles.

When Henry Ford built the Model T, did he have any idea about windshield washers, turn signals, side view mirrors, electric starters, automatic transmissions, seat belts and air bags, radios, power steering, power brakes, and hundreds of other features we would not be without in today's cars?

Change is a constant in our society. It has many downsides, but change can bring about a better life for all. Without change, many of us would be peasants in Europe working long, hard hours for the lord of the manor.