Austerity is the New Hedonism

In this thought-provoking episode, Malcolm and Simone delve into the emerging trend of austerity as a new form of hedonism and status signaling in contemporary society. They explore the shift from traditional displays of wealth and indulgence to a growing appreciation for self-discipline, frugality, and intentional living.

The discussion begins with Simone's fascination with Caleb Hammer's YouTube channel, which showcases the financial struggles of individuals burdened by debt and poor spending habits. The couple examines the prevalence of runaway hedonism in modern society, where people prioritize immediate gratification over long-term financial stability and personal well-being.

Malcolm introduces the concept of "voluntary austerity" as a means of distinguishing between true self-discipline and the unfortunate circumstances of poverty. He argues that the ability to delay gratification and make sacrifices for one's future self is a hallmark of genuine austerity, whereas hedonism is driven by involuntary impulses and short-term thinking.

The conversation then shifts to the rise of austerity as a status symbol among influential figures like Elon Musk and the tech nerd bro culture. Malcolm and Simone discuss how signaling a lack of pretension and an embrace of frugality has become a way for the wealthy and powerful to differentiate themselves from those who rely on traditional displays of opulence.

Simone highlights the growing interest in austere practices such as intermittent fasting, cold plunges, and minimalist lifestyles, noting that while many people aspire to these habits, few manage to follow through consistently. She suggests that the gap between interest and action indicates that austerity is more of a status thing than a genuine recognition of the unsustainable nature of hedonistic living.

The couple also explores the potential for austerity to become a true status signaler, positing that by redefining masculinity and femininity around self-discipline and personal industry, society can shift away from the glorification of excess and towards a more sustainable and fulfilling way of life.

Throughout the episode, Malcolm and Simone touch on various examples of hedonistic behavior, from the normalization of suicidal ideation among younger generations to the reliance on food delivery services like DoorDash. They emphasize the importance of contextualizing oneself as part of an unbroken chain of past and future selves, a perspective that can foster a genuine appreciation for austerity and long-term planning.

Join Malcolm and Simone as they explore the complex interplay between hedonism and austerity, the role of status signaling in shaping cultural values, and the potential for a societal shift towards a more intentional and purposeful way of living.

Simone Collins: [00:00:00] Hello, gorgeous.

Malcolm Collins: Hello, Simone. It is wonderful to be here with you today. And what I wanted to talk about today was just a thought that came to me in sort of the, the younger groups where I'm like, these are like the cool, competent, younger people I know. And this trend I see, Of austerity is the new hedonism.

And then I started to think about this line more and I was like, well, let's, let's elaborate on this. It is voluntary. Austerity is the new involuntary hedonism. And when I brought this to you, something that you pointed out that I thought was really interesting is that hedonism is always involuntary and austerity is always voluntary.

To have less. Due to reasons outside of your control is just [00:01:00] poverty. Yes, it's not austerity. Austerity is intentional self regulation. Whereas with hedonism, because it is being driven by your internal instincts, things that you did not choose to want to feel, It is always a thing that you are approaching outside of your control.

Would you like to know more?

Malcolm Collins: So I wanted you to elaborate on this topic in terms of how it relates to the world today and, and, and social status.

Simone Collins: Yeah. And I, I do think that there are different layers to this because some of the layers are just new forms of hedonism, I would argue. And I mean, I'd even argue Elaborate on what you mean by that.

Give

Malcolm Collins: some

Simone Collins: examples. Yeah. Well, I mean, I would argue that the dopamine hit that I get from saving money is similar to the dopamine hit that many people get from spending money. And whereas spending money, like really stresses me out. So

Malcolm Collins: I don't know about this, like one of your favorite shows these days.

So people who don't know this, she talks about it all the time. It's like [00:02:00] her core guilty pleasure show right now is a show where people put money into envelopes. Explain this. No, no,

Simone Collins: no, no. Actually my, my favorite. Current YouTube binge is Caleb Hammer's channel. He interviews people, like he has guests on who need help with their finances, typically because they're in crippling debt and really spending their money poorly.

And then he creates new, very austere spending programs for them and budgets and talks about how like, well, for the next like year, you're not going to go out to eat. You're not going to do anything fun at all. You're going to work. You know, the ton to pay off all this insane debt so they can get back to a good place.

And I just find it insanely comforting, but I did discover this actually

Malcolm Collins: do

Simone Collins: it. Well, and he has people on like six months later sometimes to do followups. And it does seem very, it's very unusual for somebody to have actually.

Malcolm Collins: And what happens to them? Have they like lost all their stuff? Have things foreclosed on them?

Or are they just getting more debt? Yeah.

Simone Collins: Some of the [00:03:00] people have in followups, improve their behavior a little bit, but just not a lot. Like they're still spending more than they should be. They're not following their budget. But a lot of people are showing up and, you know, even in their early twenties with insane amounts of debt on really dumb stuff, like they bought a Tesla totally on finance that they have no ability to pay off.

And they just kind of. I've been noticing a lot of Americans use credit cards the way that we would use like an exclusively for fun budget. Meaning that like, as long as I have a limit on my credit card and I can keep spending it, I can spend this on whatever I want. And I can go take my friends out to dinner.

I can travel, I can take a cruise and that's not a problem. But yeah, no, I did discover Caleb Hammer's channel after I discovered the whole genre of. Envelope budgeting on YouTube where you don't see a person or an interview or anything like that. You see, just a [00:04:00] pair of hands on a desk taking a bi weekly payroll or monthly earnings in cash, and then putting them into little envelopes.

And there's this whole cottage industry that has arisen around this with. People selling on Etsy, like shops of like their templates for like the little, like money holders you can buy and everything like that. And also even like templates for like forms of budgets and little contests you can create for yourself around saving for different things.

Because the way the envelope budgeting works, and in fact, we actually do something kind of similar is you, every time you get a paycheck, put like a certain amount of money toward like, this is for fun. This is for travel. This is for, you know, insurance. This is for bills. This is for whatever. And you only spend money that you have, whic