“Austerity” is a watchword in the media these days in both domestic and international economic news. The recent downturn, the story goes, has meant that governments can no longer sustain entitlement obligations or take on any more debt. So too must citizens reduce their expectations and assume more personal responsibility, accepting less in return.

In her book Plenitude: The New Economics of True Wealth, economist and sociologist Juliet B. Schor presents a different narrative, one that suggests the current environment is an opportunity to live a more satisfactory, which is to say richer, life. She offers a solution to the “work-and-spend” dilemma of modern consumerism she initially described in her 1992 bestseller “The Overworked American: The Unexpected Decline of Leisure” and continued in the follow up “The Overspent American: Why We Want What We Don’t Need” of 1999. Her thesis rests on four principles: freeing up time by reducing work hours outside the home, shifting that free time to more self-provisioning, developing low cost, low impact but high satisfaction consumption, and reinvesting in community and other forms of social capital.

Why “Business As Usual” No Longer Works

One of Schor’s main assertions is that we must find another way to define wealth and well-being because, in a phrase, there is no alternative. The supposedly endless cycle of material expansion that fueled economic growth as part of what historian Lizabeth Cohen calls the “consumers’ republic” of the postwar era has been exhausted in America at least. Double-digit unemployment, evaporating home equity, and eroding pension balances have taken the gloss off the consumer spending that accounted for between two-thirds and 70 percent of the US economy in recent years.