Is Minimalism Possible at Macro level?

When choice becomes a problem and you feel the need to break the dilemma rut, there is a way out. The way i am putting this thought forward is based on the philosophy of “Less is more” also known as Minimalism.
Minimalism is one of the philosophy of living that the modern society has evolved to counter consumerism society.
What is Minimalism?
Minimalism is a tool that will help you declutter your life by giving away possession of things you need the least and focusing only on the important things in your life. By following this way of life you’ll be able to focus only the things that make you happy and productive. This philosophy could be applied to material possession or the mental baggage that you carry. It’s always quality over quantity.
What if Minimalism is followed at macro economy level?
Our economy is built on the philosophy of consumerism, the more people consume, the more taxes government get and the more profits businesses make. consumption of fast moving products has made us to possess many materials. So what if, people started consuming only what was necessary? consuming less to get more? quality over quantity?
The demand of products will decline as consumers would focus on getting more value from less goods while business would be forced to produce less due to market forces acting in favour of demand. Cheap and fast moving business Houses will change their trajectory to producing quality goods priced at certain level to maintain its profitability. The repercussions of this would force companies who are not able to build and maintain their brand identity to go out of business.
Consumers, in this scenario where they are more conscious about their spending habits would consume less and save or invest the rest. As the rate of savings increase, naturally financial institutions would have to resort to reduce the savings rate as they cannot sustain a higher savings with a high interest rate. In order to match, the growing supply of deposits, financial institutions would also cut the rate of loans and advance to attract the borrowings. Companies can borrow money at lower costs as supply of savings deposits will increase thus helping companies grow and expand providing innovative and quality products. Individuals, who are self employed, could borrow and invest in their business and thus develop a large pool of market with small companies dealing in niche products.
With reduced production, we could devote our time from work to doing more things that are important to us, that make us feel happy like pursuing hobby, art, more travel & tourism. Make us feel better and our time worthwhile. however, it would only be successful only if government is ready with plans to divert the idle time of the population due to reduced production and lower employment rates.
Even though this kind of economic philosophy might take us to the old times where people were satisfied with whatever little they had. The emphasis from money to general activities would prove to be a boon.
The Other side of this thought
There is still a catch unanswered. If more and more people start saving/investing and helping business grow, how is the economy going to service the extra quantity produced as the population is satisfied with minimum requirement. There would be competitive environment for attracting consumers. Quality differential will be a point of distinction between companies. Price factor is another influential factor for economies who are price sensitive. Would we come back to an efficient market like we have today? The Government’s role is not factored in as the government will have to be quick on their feet to efficiently channelize the idle capacity towards more useful activities.
What do you think of this thought? Do comment and share your views.
