The motley movement included conservationists denouncing the clear-cutting of forests and prohibitionists railing against those wasting their paychecks in saloons. But it also embraced those who staunchly believed in private- and public-sector action to promote thrift.
Bankers, union leaders, and schoolteachers joined social reformers, government officials, and charitable organizations such as the YMCA in major public-awareness campaigns, telling Americans how and why they should save. Savings banks were organized in thousands of schools, and more than four million children had school-based savings accounts by 1927. The postal savings system provided a safe, accessible place for small depositors to invest from the '10s through the '60s.
Our current personal debt and savings crisis suggests we might gain much from revisiting some of these ideas. As the U.S. Postal Service flounders, reviving postal savings could repurpose community post offices. Mandatory saving policies could improve Americans' retirement security. In the 2008 presidential campaign, Hillary Clinton called for government-issued "baby bonds" like Britain's to help families save for college. Others have proposed selling "savings tickets" at lottery outlets, with purchasers eligible for prizes. We might even take a page from the Italians, who are being encouraged to buy a stake in their national debt, saving while they help alleviate a fiscal crisis.
Some proposals to promote saving may elicit partisan fire, but the fundamentals of thrift are decidedly nonpartisan. While America needs to foster greater opportunity and economic security, it also needs to encourage wiser use of the resources we have.
Andrew L. Yarrow teaches history at American University and is a senior fellow at the Institute for American Values. He is writing a book about the American thrift movement.
