In case you have not yet heard, we are in the middle of the worst financial crisis since the Great Depression. The value of the US dollar is falling, unemployment is high, inflation is knocking on the door, and for the first time in history, the US may default on its obligations. For all intents and purposes, it appears as if the sky is falling, right?
But, wait! There is hope! Yes, even with all the apocalyptic rhetoric surrounding the US economy, at least on a microeconomic scale there may be a solution: communes in the style of Israeli kibbutzim.
Israeli kibbutzim began as communal farms in Palestine as Jews returned to the holy land in the 1900s. The work of an everyday "kibbutznik" was rough and different from life in Europe, but the kibbutzim movement flourished and has persevered through Israel's often turbulent history. Perhaps American society can learn something from the model of the Israeli kibbutz.
Though communal living has its costs, it does have its advantages – especially in times of dire social and economic distress. In an economy where citizens are being mandated to change their lifestyles anyhow to cut costs and reduce spending, communal living may evolve from being a mere idea into something necessary for American families. In the near future, it may prove economically beneficial for families to come together and pool resources on common property.
On a microeconomic scale, advantages of communal living would include parents being closer to their families, less need to make daily trips to the grocery store, school, or shopping, less fear of food or water shortages, less risk of financial insecurity as resources are spread among multiple economic factors, and a reborn spirit of productivity returning to disenfranchised and displaced workers.
From a microeconomic perspective, disadvantages may include less independence, less ability to "get away," possible freeloaders, and less financial freedom to pursue individual goals. Though there would be significant costs in lifestyle changes, the sacrifice of freedom for stability may pay off for those who are still waiting for a lasting economic recovery. Nevertheless, given the costs associated with communal living, such a move would most likely stem from the model of the family.
If a critical amount of the US population were to undertake communal living in the style of Israeli kibbutzim, American society would no doubt feel its effects in the retail sector, housing sector, education, and various other sectors of the US economy. If a critical number of US families held resources in common, aggregate demand may fall substantially in the short run. Rather than each household having its own vacuum cleaner, washer, dryer, refrigerator, cars, or kitchen, these may be shared in common by one extended family or multiple families – thereby decreasing the demand for goods like washers and dryers.
Given the costs and benefits associated with the concept, the question of communal living in American society comes down to whether it would be financially advantageous for individuals and families to attempt communal living. The supposed un-American nature of communal living aside, it may be better for families to unite and deal with struggles rather than be in worse positions on their own.
Of course, we cannot forget the startup costs for land and equipment that would be required for such an endeavor. And indeed, these startup costs could prove impractical for most Americans. Nevertheless, when major crises hit, oftentimes people are able to come together and work together for the common goal of survival. After all, the desire for survival is this planet's strongest motivator. And if the US economy completely collapses, making the currency worthless, or if high fuel prices eventually make the daily commute not worth the money and labor, then communal living could very well be coming to a town near you.
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