Back in the late 1970s, the Great Capitol Hill Baby-Sitting Co-op ran into a recession.
Like any other Co-op, this was a community-driven initiative. Each couple would trade coupons to babysit for one another. Each couple would get an equal set of coupons that they would with the couple who babysits. If a ‘couple A’ babysits for ‘couple B’. The Couple B pays coupons equivalent to the time traded by couple A. This healthy equilibrium helped all couples in the community get some evenings off for each other.
Until a single couple decided to start saving coupons for special occasions. The couple would babysit for someone and not pass on the same opportunity to someone else. This triggered a chain reaction and everyone started holding onto coupons and stopped going out every evening. The chain continued until there were no more opportunities for couples to babysit and earn coupons. This moved the entire co-op into a so-called recession.
This is a reflection of what happens during a recession. Everyone start’s holding onto the money fearing they would not be able to earn more as time progresses. The money exchanges fewer hands during this time and a few exceptions that happen stop as soon as it reaches the hand of a person who is fearful of opportunities drying out.
There are a couple of ways this co-op can get out of recession. These are either every couple starts spending coupons so that once again there are enough opportunities in the market. This has to be facilitated by the co-op committee by providing certain initiatives or the co-op committee issues a fresh set off coupons for everyone which would make everyone feel safe to spend again.
As an individual, it is one’s responsibility to not let this feeling overpower us. If you are on the other part of the spectrum where healthy spending does not affect your lifestyle then one should continue to do so. This brings in more money to businesses in your neighbourhood. Why keep the wheels of the economy rolling.
As an individual, it is one’s responsibility to not let this feeling overpower us. If you are on the other part of the spectrum where healthy spending does not affect your lifestyle then one should continue to do so. This brings in more money into the market and keeps the wheels of the economy rolling.