I felt like my last post was too pessimistic and I wanted to do another post with an idea I think would be good to stimulate the economy.
In this current economic environment there is no good reason to spend money. People are still afraid of losing their jobs, and even if you are confident in your job stability most are trying saving more. I always heard that the best time to invest is when no one else wants to. The only problem with this is that if you don’t have a job or are worried about losing your job you may not have the cash to invest. Especially when it comes to investing in your house.
With all the excitement over sustainability myself and other people out there will tell you that you should put money into your house and make it more efficient so that it saves money. However, if you’ve ever walked through the steps to actually upgrade your home, it is a large investment of time and money to make your home more efficient.
I believe this is why we need government stimulus tailored to energy efficiency. The government can help increase the returns of sustainable investments and offer guarantees to help investments in your home more rewarding. The first bailout was to the banks to stabilize our economy. The next must be an investment in our future to make the U.S. more efficient. These could be providing loans to homeowners to make energy improvements, giving financing to sustainable building manufacturers to produce more product or making the investment in its own buildings to stimulate demand.
When this recession started everyone was already predicting the “V” recovery and how great things were going to be in just 6 months or a year or worried about a “W” recovery with a lot of ups and downs. I never imagined the recession would be so long or deep but I always imagined it would be more like a slightly tilted “L”. A decline followed by leveling off or a slight increase. Assuming this is correct or even close to right, the only thing to jump-start our economy and get it producing its own jobs is spending money on something that is going to save us money in the future. Investing in sustainable building, mass transportation and new sustainable technologies will do this.