What Is Consumerism?
Consumerism is the concept that increasing the consumption of goods and services bought in the marketplace is a desirable goal and that an individual’s well-being and happiness are fundamentally linked to obtaining consumer goods and material possessions.
In the economic sense, consumerism aligns with the predominantly Keynesian idea that consumer spending is the driving force of the economy and that stimulating consumers to spend is an essential policy goal. From this perspective, consumerism is a positive phenomenon that drives economic growth.
However, others view the drive to acquire more material possessions as problematic, leading to individual anxiety and eroding social cohesion.
Key Insights
- Consumerism posits that individuals who consume goods and services in large quantities are better off.
- Many economists argue that consumer spending stimulates production and facilitates economic growth.
- Economists see consumption largely as fulfilling biological needs and maximizing utility, while sociologists view it as also fulfilling social needs through symbolic transactions.
- Hyper-consumerism has received criticism for its economic, social, environmental, and psychological consequences.
The Dynamics of Consumerism
In general terms, consumerism references the tendency of individuals in a capitalist society to adopt a lifestyle of excessive materialism focused on reflexive, wasteful, or conspicuous overconsumption. This widespread perception of consumerism contributes to the erosion of traditional values, exploitation by big businesses, environmental degradation, and negative psychological effects.
Thorstein Veblen, a 19th-century economist and sociologist, coined the term “conspicuous consumption” in his book The Theory of the Leisure Class (1899). This concept describes the act of purchasing and displaying goods as a means of showcasing social status. While typically associated with the wealthy, conspicuous consumption can apply to any economic class.
Following the Great Depression, consumerism lost favor. However, following World War II and the subsequent era of prosperity, consumerism gained a positive connotation, highlighting the benefits of capitalism in improving living standards. These positive connotations have since shifted, as excessive consumerism raises concerns.
According to economists, consumer spending provides utility both to individuals who benefit from consumer goods and to businesses that see revenue increases. For instance, a surge in car sales boosts profits for car manufacturers, and benefits the industries that supply materials like steel, tires, and upholstery.
The Economic Impact
Keynesian macroeconomics prioritizes boosting consumer spending through fiscal and monetary policies as a primary strategy for economic growth. Given that consumer spending comprises a significant component of aggregate demand and gross domestic product (GDP), policies designed to promote consumerism are seen as vital tools for steering the economy towards growth.
Consumerism champions the consumer’s role as pivotal to economic policy and a revenue source for businesses, premised on the belief that heightened consumption aids the economy. Saving has often been regarded as potentially harmful because it restrains immediate consumption.
Consumerism also influences business practices, including those related to planned obsolescence or intensive marketing measures aimed at stoking consumer demand rather than informing consumers.
Conspicuous Consumption Explained
Political economist Thorstein Veblen’s notion of conspicuous consumption describes consumers who buy products as social signals rather than for their direct utilitarian value. Post-Industrial Revolution, as standards of living rose, the practice gained traction with high rates becoming wasteful and potentially contributing to negative makover ecosystems.
In sociology, consumerism symbolizes consumption serving as indicators and identity markers with heavy social undermining frigal actions.
Benefits and Drawbacks
Advantages
Proponents of consumerism assert that consumer spending can propel economic growth, resulting in increased production of goods and services and a subsequent rise in GDP. Boosting consumer demand is linked to heightened consumer confidence, increased retail sales, and personal consumption expenditures. Manufacturers, downstream buyers, and workers in the industry all benefit from this.
Disadvantages
Critics argue that consumerism leads to a materialistic society, overshadowing other values and replacing traditional lifestyles with ever-costly consumption habits. Additionally, the globalization of goods creates conflicts with local economies and cultures, and encourages unsustainable debt levels, leading to financial crises and recessions.
Environmentally, consumerism is critiqued for externalities like pollution, resource depletion, and waste issues. Psychologically, consumerism is blamed for fostering status anxiety, social stress, and emotional unhappiness, contrary to the supposed well-being benefits it claims.
Consumerism and the American Dream
The term “The American Dream” has evolved significantly. Originally, it represented ideals of social equality, justice, and democracy since its popularization around 1916. Over generations, it shifted focus, particularly during the Cold War, aligning with a capitalistic, consumerist mindset now defined by material success.
Real-World Examples
Consumerism manifests in various ways. One common instance is shopping sprees, such as Black Friday sales after Thanksgiving, where massive numbers engage in retail shopping. Another instance involves the yearly introduction of newer mobile phone models prompting people to regularly upgrade their devices. Conspicuous consumption offers another example, encompassing buying goods to showcase social standing and portray specific images. While often criticized, it can also represent pro-social signaling.
Impact on Society
Essential consumer behavior is necessary, but excessive consumerism is widely seen as detrimental. It leads to negative externalities like pollution, defining individuals predominantly by their possessions. Sociologists view mass campaigns by the advertising industry as crafting passive, manipulated consumers.
Influence on Social Class
Consumption patterns demarcate social classes, distinguishing tastes for food, fashion, media, and hobbies based on economic status. These consumption behaviors inform both self-identity and group-identity, with class-driven aspirations and fears shaping consumer choices and interpretations.
The Bottom Line
Consumerism encompasses the urge to buy and possess more, often defining identity through ownership. While economists view consumerism as essential for spending and economic growth, sociologists, psychologists, and environmentalists raise concerns about its ripple effects on individuals and societies globally.
Related Terms: consumer spending, conspicuous consumption, planned obsolescence, capitalism, Keynesian economics.
References
- Kuhumba, Kevin Shijja. Hyper-consumerism: Rethinking Virtue Ethics and Moral Solution in Contemporary Society. *Journal of Sociology, Psychology, Anthropology in Practice,*vol 2, 2018, pp. 114-124.
- Thorstein Veblen. **The theory of the leisure class. Routledge, 2017.
- Association for Psychological Science, “Consumerism and Its Antisocial Effects Can Be Turned On—Or Off”.
- Ivanova, Maria N. Consumerism and the crisis: wither ’the American dream’?. *Critical Sociology,*vol. 37, no. 3, 2011, pp. 329-350.
- Theodor W. Adorno and Jay M. Bernstein. **The culture industry: Selected essays on mass culture. Routledge, 2020.
