We talk about a race to the bottom irt. companies but it might be wise to apply the same thinking to society at large as well.

Companies have been criticized(rightly imho) over their lack of reserves to handle the corona virus and shutdown. The defense of the companies is that by keeping cash on hand instead of spending it, they are at a competitive disadvantage.

This holds true for individuals as well, abet in a more abstract manner. If you are young and trying to attract a mate, wearing old/unfashionable clothes is detrimental. In some circles, what car you drive and it's age is important.

This thinking also extends to non-tangible things as well. What TV shows do you watch? Subscription to cable or even streaming is expensive but it is something we often feel we have to have, not only for our entertainment but also to be connected culturally with our peer group.

These pressures and factors are not new, the phrase "Keeping up with the Joneses" came from a comic in 1913. It has been argued that social media is making these pressures even greater, as people share(and reward the sharing of) the positive aspects of lives but leave out the negative aspects. This creates a sort of perverse view of the world where you see people taking vacations, going out to eat and buying new gadgets where it all runs together and does not show the effort, hardships and sacrifices made to obtain those things.

If we as a society do not value having savings then why should we expect anyone to save? Especially is the reward for doing so is not visible?