In many countries around the world, from China to the US to Australia, there is concern that people are not spending enough of their money. They are saving it.

The average person needs to save some of their money for emergencies and for their children’s education, but in most cases, saving is not a good idea. The top 10% save a huge amount. There is only so much they can spend on houses, boats, holidays and luxury material possessions, so they just invest it and then save the dividends so they have more saved. This is detrimental as it does nothing to support a sustainable world.

A key reason that the average person is consuming less is that many have realised they do not need lots of material possessions. They would rather live in a sustainable way, conserving and creating. More and more people are growing their own vegetables and fruits and cooking at home rather than buying pre-packaged foods. More and more are passing things they no longer need, that are in good condition, to others who need them in their local communities via organisations like “Buy Nothing”, and charities. More and more are donating to crises like Palestine and Sudan. They want to make a difference in the world. So as well as volunteering, they are passing on material or monetary resources. They don’t want, or need, lots of material possessions.

A better argument for governments in aiming to improve the well-being of people in their countries is to promote messages about only saving for emergencies and essential activities or items, but to donate most savings to improve the world. Part of the message would also need to explain that, rather than amassing savings, it would be much better to support the payment of more taxes, like in Scandinavia, where there is free healthcare, and free education, including at tertiary level. There would then be no need to save for these things. Also, government lifetime support for people living in rental accommodation, as in France, would reduce the anxiety of needing to have adequate funding for housing. When salaries are just needed for basic living, the money stretches further.

Persuading the ultra-rich to donate or redirect their savings will not be easy. Attempts to do that are discussed in the 2020 novel The Ministry for the Future by Kim Stanley Robinson, which includes some great ideas on how to negotiate with those who are focused on wealth and profit. The ideas include redirecting their enterprises to activities which reduce climate change and increase well-being. The arguments include analysis showing how continuing how they are, will eventually reduce their wealth, but redirecting can result in some stabilisation of situations veering into crisis.

So consumption, amassing more material possessions, is not the answer. Amassing more savings is not the answer. Redirecting the resources we have towards the well-being of all is the only viable way forward.

The views expressed in this article may or may not reflect those of Pearls and Irritations.