The thrifty will inherit what's left of the earth

The global economic crisis has prompted some serious rethinking on concepts like 'greed' and 'thrift'. Greed is no longer good and the thrifty will inherit the earth, provided, that is, that the greedy haven't destroyed it by then.

Thrift has had a bad rap in the past. Just look at some of the word associations - 'skinflint', 'frugal', 'mean', 'Scrooge'. A new report from US think tank The Institute for American Values, entitled For a New Thrift: Confronting the Debt Culture, attempts to foster a culture that's more amenable to thriftier lifestyles.


Business Week points to a growing number of 'Freegans', who see acquiring things for free (sometimes literally out of a dumpster) as a virtue.


Thrift immediately suggests saving money, but the concept is broader. People can be frugal in their consumption of resources generally, be it personal funds or the world's resources.


A culture of thrift is thus poised to take advantage not only of economic trends but environmental ones. The Australian government is set to ban the sales of incandescent light bulbs from October 2009, forcing a switch to energy saver, or halogen, bulbs.


Being thrifty can be seen as the 'smart' choice. This is the reward of thrifty consumers. They may save in one area of their lives, to splurge in other areas that mean more to them, for example, saving on basic foods to splash out on imported cheeses, which will look impressive at their dinner party. Or, people simply feel the reward of 'doing their bit' if their frugality benefits the planet in some small way.


Various brands have adopted positionings based on thrift, car rental company Thrifty, for instance. But, with frugality increasingly in vogue, others are following.


Australian consumers know that the wolf is at the door. They're beginning to cut back, but, the Mackay Report suggests, behavioural change doesn't automatically follow the realisation that the times are a-changin'. It takes a while for people to wean themselves off spending habits. Most would rather protect their lifestyles and the luxuries they now consider their dues.


Brands, which can help them protect their lifestyles, stand to gain.