David Brooks on the New Thrift

The most-emailed New York Times article today is David Brooks’ opinion piece on the revival of thrift which trumpets an event we co-sponsored with the Institute for American Values back in May. He calls the accompanying report “one of the most important think-tank reports you’ll read this year.”

Thrift was a concept which was once wildly popular, heralded by Benjamin Franklin and other civicly-minded folk. It originally didn’t mean being frugal or stingy but rather wise saving that would lead in turn to prosperity and growth.

Brooks notes the virtual disappearance of this ethos and decries the rise of a debt culture, the prevalence of predatory lending practices, and the popularity of lotteries as explanations for the decline. He suggests some policy responses right out of our playbook, including better financial education, children’s savings accounts, elimination of payday lending, and tax reform that promotes saving rather than consumption. No wonder it is a popular article. I think I’ll send it to my mother.