Economic Effects of Consumerism - Essay Example

When the aspect of consumerism comes into effect with its emphasis on conspicuous consumption, the system gets thrown out of gear. The production-consumption cycle becomes a vicious spiral that is difficult to break. Some of the economic effects of consumerism are: Planned Obsolescence / Dissatisfaction. Rather than striving for a state of equilibrium, consumerism dictates that there must be an exponential increase in demand. Hence the advent of the 'disposable' culture is aimed at increasing demand, as well as sustaining it.

This is coupled with advertising which creates a felt need where none existed before by projecting existing products obsolete. This encourages the viewers to 'junk' his old model and buys a new one. These two factors combined serve to promote consumerism to unhealthy levels, but at the same time promoting growth and competitiveness. Environmental Effects. . overcome these limits, most inventions and discoveries have sought to promote consumption rather than trying to rein in consumption in order to bring consumption (demand) and production (supply) into a state of equilibrium.

The economic costs of environmental degradation are never factored in as they would make products un-competitive. Promote Inequality. The most glaring drawback of consumerism, however, is that it promotes inequality, by widening the gap between the world's rich, confined to a few countries and the world's poor, spread out all over the globe. "Globally, 20% of the world's people in highest-income countries account for 86% of total private consumption expenditure - the poorest 20% a minuscule 1.

3% " (UNDP). As demonstrated by these figures, consumption is a game of the rich. Increased production, therefore, does not in any way help to ameliorate the plight of the poor, but rather to satisfy the egos of the rich. In economic terms, such a pattern is unsustainable in the long term and will only result in a social revolution. Since the effects of consumption drive most economies world-wide its effects are also global in nature. The ill-effects of consumerism are well-known and documented, but economic imperatives often over-ride more pragmatic considerations in attempts to move towards a sustainable economic model.

Consumerism through promoting growth is nevertheless, not only undermining the environmental resource base but it is also exacerbating inequalities.