51 Must Know Consumerism Facts That Changed Economic Growth

Consumption is the inclination of the population of the world, especially in America, to indulge in an excessive materialistic lifestyle centered on reflexive, wasteful, or showy overconsumption.

Consumption is commonly regarded as contributing to the erosion of conservative values. Consumer abuse by big businesses, environmental damage, and bad psychological repercussions. Conspicuous consumption is a way of displaying one's social life. Especially when publicly advertised products and services are out of reach for other members of the same class.

This style of consumerism is often associated with the rich in the world, but it may apply to any income stratum.

A few consumerism facts are here:

• Consumerism may be traced back to the 16th century in Europe, when capitalism first emerged.
• Consumerism grew in the eighteenth century as a burgeoning middle class embraced luxury spending.
• In the 18th century, there was also a growing interest in clothing instead of necessity as a determining factor in purchasing.
• Politics and economics can also be blamed for the rise of consumerism.
• Capitalist rivalry for profits and markets has to be at the heart of every country's agenda for it to succeed politically and economically half the time.
• According to history, colonialism has also been seen as a key motivator of consumerism as well.
• As there was ample supply and production, the industry had to hunt for outlets for their commodities by establishing demand.
• The industrial revolution in America also fueled consumerism by expanding the number of consumer items on the market. It was a result of the greater usage of machinery.
• Purchasing products and services has become a way of life. Consumerist culture is still prevalent today in half the world.
• In America, it encourages spending on consumer goods such as vehicles, clothing, shoes, and electronics rather than saving and investing.
• Consumers purchase goods and services in order to stay up with fashion/trends.
• As noted in history as well, the pursuit of superior things is never-ending.
• Consumption is on the increase in both emerging and developed nations (like America) today. This is seen in the mass manufacture of high-end items worldwide.
• Advertisements are very prevalent in the media. Personal debt levels are also growing internationally.
• More and more individuals are purchasing products on the spur of the moment or without sufficient financial preparation. Product innovation is another obvious symptom of consumption.

What is consumerism?

The idea that the increased consumption of goods and services by a person, one which serves his desirable objective of well-being and pleasure, is dependent on the act of acquiring consumer goods and material belongings, is called consumerism.

In an economic sense, it is tied to the prevailing Keynesian notion that consumer spending is the primary driver of the economy and that encouraging people to spend is a significant governmental priority.

Consumption, in this perspective, is a good phenomenon that promotes economic growth.

• Consumerism is the belief that those who consume a lot of goods and services will be better off.
• Consumer spending, according to some economists, drives output and economic growth.
• Consumption, on the other hand, has been severely condemned for its financial, social, ecological, and psychological implications.
• Consumerism is a socioeconomic system that fosters the purchase of ever-increasing quantities of goods and services.
• With the industrial revolution, mass manufacturing resulted in overproduction. The supply of items would exceed market demand, and producers turned to planned obsolescence and advertising to influence consumer spending.
• Consumption may refer to economic policies that emphasize consumption in the economy. It is the belief that customers' freedom of choice should greatly influence producers' decisions about what and how to create, and hence influence the economic organization of a society.
• Consumerism has been heavily condemned among individuals who prefer alternate methods of engaging in the economy.
• Experts frequently highlight the connection between consumerism and issues such as the growth imperative and overconsumption, which have larger environmental impacts.
• Some studies and critiques focus on consumerism's societal impacts, such as the strengthening of class divisions and the establishment of inequities.

Origins Of Consumerism

Consumer society began in the late 17th century and grew in importance during the 18th century.

• While some argue that the growing middle-class embraced new ideas about luxury consumption, others argue that the growing importance of fashion is a purchasing arbiter rather than a requirement.
• Many critics argue that consumerism was a political and financial necessity for the reproduction of capitalist competition for markets and profits.
• While others point to the increasing political power of international working-class organizations during a rapacious period.
• According to the 'middle-class' viewpoint, this revolution included the increased building of enormous country estates, particularly built to accommodate for comfort, as well as the greater availability of luxury items aimed at a rising market.
• Sugar, tobacco, tea, and coffee were among the luxury items that were widely farmed on enormous estates in the Caribbean as demand rapidly increased.
• Critics believe that colonialism did contribute to the rise of consumerism, but that the emphasis should be on supply rather than demand as the motivating cause.
• The same number of people who had been eating considerably less than was becoming essential had to consume an increasing number of exotic imports as well as home manufacturers.
• The assumption that a high rate of spending on consumer goods is synonymous with achievement or even freedom did not exist prior to large-scale capitalist manufacturing and colonial imports. That concept was developed later, more or less purposefully, in order to increase domestic consumption and make resistance cultures more adaptable in order to extend their reach.

Effects Of Consumerism

Increasing consumer expenditure through monetary and fiscal policy is a fundamental goal for economic planners.

• Consumer spending accounts for the lion's share of consumer spending and GDP all over the world. Increasing consumer expenditure is regarded as the most effective way to drive the economy to growth. It helps the industry's sales, as seen in history.
• Consumerism regards the consumer as an economic policy objective and a cash cow for the corporate sector, with the sole idea that boosting consumption improves the economy. Saving can even be considered damaging to the economy since it takes away from immediate consumer expenditure.
• Consumerism also influences some business operations. The creative destruction of consumer goods may replace manufacturer rivalry to develop more lasting items. Marketing and advertising may become more important in developing customer demand for new items than informing consumers.
• Consumerism is frequently chastised on cultural grounds. According to some, consumerism may lead to a materialistic culture that ignores other values. Traditional means of production and ways of living can be supplanted by an emphasis on consuming increasingly expensive items in greater numbers.
• Consumerism is frequently related to globalization in that it promotes the creation and consumption of internationally traded goods and brands, which might be incongruous with local cultures and economic activity patterns. Consumerism may also encourage people to take on excessive debt, which contributes to banking meltdowns and recessions.
• Environmental issues are typically linked to consumer society constituted by the average American population. The direct impacts of consumption generate environmental externalities.
• These might include pollution caused by manufacturing businesses. Resource depletion is a result of widespread, rampant consumerism. Trash disposal issues are caused by the purchase of surplus household items and packaging by consumers.
• Finally, materialism is frequently chastised on psychological grounds. It is blamed for raising status anxiety, a condition in which individuals of the consumer class suffer tension as a result of their social position.
• According to a psychological study, people who structure their lives around consumer culture goals, such as product acquisition, have worse emotions, more dissatisfaction in relationships, and other psychological difficulties.
• Psychological studies have indicated that families who are exposed to consumerist ideals centered on income, prestige, and material things have higher levels of anxiety and despair.
• Increased demand for commodities places a significant strain on the natural resources of the Earth. Consumption of energy is also an effect of consumerism. Consumerism also promotes the use of chemicals by industries on a global basis, that have been shown to harm the environment. In a nutshell, consumption does more harm than good to Earth.
• Growing commercialization tends to distance societies from fundamental ideals like honesty. Instead, a major emphasis is placed on consumerism and competitiveness. The consumer class tends to acquire items and services that are not basic needs in order to be on par with or above the average American.
• Consumerism also raises the debt levels of consumer society. The average American takes out short-term loans to purchase luxury material goods. Some short-term loans are not being put to good use today in America.
• Consumerism raises consumer credit levels, which leads to mental health issues such as stress and sadness. Trying to keep up with the developments when you have scarce resources may be mentally and physically demanding.
• Consumerism drives the entire population to work longer hours, borrow more money, and spend less time with their families. Consumerism obstructs good connections in society. It has a detrimental impact on people's lives in the long run. The study has shown that materialism does not provide valuable and long-term contentment.
• Consumerism has both positive and negative aspects. Although consumerism fosters economic progress and innovation, it is not without its drawbacks, which range from environmental and moral degradation to greater debt levels and mental health issues. Given that we currently live in a consumerist world, it is prudent to achieve a healthy balance.

The Positives Of Consumerism

Consumer spending, according to proponents of consumerism, may stimulate global wealth and contribute to the greater production of products and services.

• Growth in GDP may arise due to increased consumer expenditure. Consumer sentiment indicators, retail sales, and personal consumption expenditures all show signals of solid consumer demand in the United States. Owners of businesses, workers in the industry, and owners of raw materials might earn directly or indirectly from consumer product sales.
• Consumerism promotes economic growth. The economy increases when people spend more money on products and services created in a never-ending cycle. There is a rise in output and employment, which leads to greater consumption. People's living standards are also expected to rise. This affects the lives of average American consumers.
• Consumers are constantly seeking the greatest things to buy, and manufacturers are constantly under pressure to innovate. Consumers' living standards rise as they have access to better items. It increases creativity and ingenuity in advertising.