Capitalism and Minimalism

The problem, of course, is that the system has taken on a life of its own. We’re so freakin’ good at what we do that millions of people are walking around with more stuff than they could possibly know what to do with.
We’re so convinced that buying that next gadget, or car, or beach home will make us happy that we leverage our current happiness by working overtime to save up enough money to make the purchase. 2 months later – we’re bored with the latest toy and a little bit emptier inside.
Not knowing what to do, we turn on the stupid box (that’s a T.V) and allow ourselves to be brainwashed by a million really enticing ads. “Hunny, I think I know what we need… let’s buy a Bowflex. Maybe if I get super fit like the guy on this commercial I’ll be able to pull myself out of this funk.”
2 months later- you know the story.

Does Capitalism Clash with the Minimalist Lifestyle?

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Mike Donghia attempts to answer a question that has been on my mind awhile. I am a libertarian, and I believe in the free market. I believe capitalism provides more material goods and abundance than any other economic system there is. It is because of capitalism that poor people like me today live better than royalty lived a century ago. Needless to say, I am enthusiastic about the free market system.

I also don't think frugality is antithetical to capitalism but is essential to capitalism. By choosing not to consume, a person accumulates capital. Many rich people are notoriously frugal with their cash. This aspect of minimalism is not in conflict with capitalism.

Where minimalism and capitalism diverge is on the consumption side. The free market delivers a great deal of goods and services that make our lives easier and better. But not all goods and services make our lives better. The quack selling bullshit cures is a notable example. Just because it is available doesn't mean you need to buy it. Choosing not to purchase a good or service is as much a part of the free market as anything else.

Minimalists choose to consume as little as possible. The reason for this is clear. It improves savings and reduces stress and clutter. Marketing and sales work to instill a felt need in consumers for various products and services. Minimalists ignore these efforts. Others do not. These are individual decisions. They are neither good nor bad. But what remains is the trade off. You can't have your cake and eat it, too.

You can't have financial security while spending more than you earn. You can earn more or spend less, but the principle remains inviolable. Savings is the difference between what you earn and what you spend. Likewise, debt is the difference between what you earn and what you spend. You can build savings indefinitely. You cannot do the same with debt. One practice is sustainable while the other is not.

At this point, someone will toss out the environmental argument and "sustainability." This is simply an effort to couch minimalism in moral terms and force it on other people for the sake of the "planet." I have no interest in this argument because it is fallacious. People who disagree with me on this Malthusian BS are advised to read The Ultimate Resource by Julian Simon.

If minimalists need a model on reconciling capitalism with simplicity, they need look no further than the Puritans, the Quakers, and the Amish. Those groups show that simplicity and abundance are not antithetical. In fact, they go hand in hand.

What would happen if the entire world went minimalist? That is obvious. You would see declines in many endeavors from making luxury SUVs to cable television to home shopping networks to the end of rented storage units. But this is not going to happen unless the government pulls off some kind of Maoist social revolution. And I don't really want that. The Green Meanies might.

Going minimalist is an individual decision. It is something you choose to do for you. I laugh at people who live in McMansions and pay more in car payments than I pay in rent. But it is their lives, their money, and their foolishness. It doesn't affect me, so I don't care.

The bottom line is that being minimalist does not mean becoming Marxist. For me, it means putting my money in the bank instead of in shit I'm not ever going to use.

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NOTES

1. http://en.wikipedia.org/wiki/The_Ultimate_Resource

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