Consumerism is the idea that increasing consumption is the best way to improve a country’s economy. It involves putting the needs of the consumers first and could be the motivation behind terms such as, “The customer is always right.” Furthermore, consumerism enables consumers to have access to luxury goods (Barber 2008). It also deals with the rights of consumers. Examples of consumerism in today’s society include mass production of luxury goods, the focus on advertisements and promotions to lure buyers, the rise in product innovations, and people getting into enormous personal debts due to impulse buying.
Consumerism is beneficial to the world’s economy as it promotes growth of economies leading to more employment opportunities. On the other hand, some disadvantages of consumerism include heavy demand on the earth’s natural resources, competition, materialism, inequality, and high levels of debt.
Consumerism and inequality
There are several causes of inequality in the present consumerist economies. The first one is the inflationary monetary policies and artificially low rates applied by governments which result in the inability of the poor to save and invest. Secondly, the use of speculation and debt leveraging in the world’s markets has resulted in the rich transferring wealth from the middle class to the few rich in the society. Thirdly, inequalities in America and the rest of the world have also been caused by elite special interest groups that have a significant influence on government affairs. Finally, another consumerism activity that has led to inequalities in the world is the monetizing of debt leading to the transfer of inflationary wealth from the middle-class to people of the high social class in society. Generally, the consumerist mindset created by the current economic systems prevents the middle class from accumulating wealth and eventually widens the gap between the rich and poor.
In his speech regarding the “American Dream” with reference to Martin Luther’s famous quote that stated “I have a dream…,” Paul Krugman (2002) elaborates on how the American dream has been evolving over the years. Martin Luther desired an America that did not discriminate people on the basis of their skin color. However, Krugman observes that the current challenge of the American society is the discrimination on the basis of one’s paycheck (Krugman 2015). According to him, the paycheck of s person’s father, determines their own paycheck. Ultimately, the wealthy become wealthier and the poor get even poorer. Consumerism has made this situation even worse by luring the poor and middle class people into impulse purchases and credit cards that plunge them into deep debt. On the other hand, the interview between Benjamin and Nill Moyers reveals how Americans have become disillusioned due to the inequalities of their society.
How consumerism can solve the inequality challenges
Much as consumerism could be the source of the inequalities in America, it can also be used to provide solutions to the country through the following ways;
Improving social protections
The federal government, social activists and private citizens should focus on guarding the consumers’ rights to ensure that people get quality goods and services from suppliers, retail stores, and various service providers. Laws and organizations that protect the needs of the consumers in America include the Consumer Financial Protection Bureau and Fair Debt Collection Practices Act (FDCPA)
Regulating the financial markets
Regulating the financial markets will provide access by all who wish to trade and protect less wealthy people from being exploited by the rich. The federal reserves should also ensure vigilance in the banking system regarding systematic risks. Furthermore, financial crimes such as money laundering, fraud, terrorist financing, electronic crime, and insider dealings should be punished harshly.
Financing local industries
The American economy has experienced closure of agricultural industries especially at the South. These companies flourished in the past and provided a high number of employment opportunities. The federal government and the state authorities need to revive these industries focusing on sustainable agricultural practices.
Shifting from polluting to cleaner goods
A major undoing of the current agricultural practices is the release of greenhouse gases to the atmosphere that has resulted in global warming. Global warming has in turn resulted in significant climate changes that are currently affect crop yield. Besides, the mass production has resulted in increase in use of energy sources such as coal and gas that cause pollution and depletion of natural resources. Manufacturing companies should shift to cleaner sources of energy to produce cleaner goods (Hickel 2017).
Increasing the minimum wage rate
The American federal government seeks to raise the minimum wage to $12/hour by 2020. Such a move will greatly improve the standards of living of its citizens.
Provide the people with safety nets
Reducing the costs of primary needs such as health, food, and shelter will enable the Americans to have surplus funds that they can invest or save. Hence, programs such as Medicaid, EITC, SNAP, and CTC should be encouraged. Besides, the government should also provide social backings such as education aids, scholarships, and low interest rate student loans.
Conclusion
The inequalities experienced by Americans can be attributed to Consumerism. Nevertheless actions such as increasing the minimum wage rate, regulating financial markets, and shifting to production of cleaner goods can reverse the situation and make the American society to become more inclusive.
Works Cited
Barber, Benjamin, R. “Shrunken Sovereign: Consumerism, Globalization, and American Emptiness.” World Affairs Journal. World Affairs Institute, Spring 2008, www.worldaffairsjournal.org/article/shrunken-sovereign-consumerism-globalization-and-american-emptiness
Hickel, Jason. “How to stop the global inequality machine.” The Guardian. 18 May, 2017, www.theguardian.com/global-development-professionals-network/2017/may/18/how-to-stop-the-global-inequality-machine.
Krugman, Paul. “For Richer.” The New York Times, 20 October, 2002 https://spot.colorado.edu/~kaplan/econ3080/Krugman-middle.html
Krugman, Paul. “Paul Krugman: Despair spreads after loss of American Dream.” The Irish Times, 10 November, 2015 www.irishtimes.com/business/economy/paul-krugman-despair-spreads-after-loss-of-american-dream
