The Impact of Consumption on the American Society - Essay Example

The Impact of Consumption on the American Society s 7th April Introduction In the American culture, consumption rates havebeen accepted as a cultural norm. Everywhere you go there are advertisements and garage sales. People are consistently obtaining bargains while the credit cards have become inculcated into our way of life (Schor, 1999). Americans are constantly looking for shopping opportunities; for instance in lunch hours and even look for malls while they are on vacations. They also carry out shopping on late nights since it can be done through the internet. It is apparent that the average American is not able to satisfy his or her living standards compared to twenty-five years ago. They now have to work longer hours; their jobs are becoming less secure and are more pressured to spend. Even with the current economic boom, many Americans are worried that they will not be able to live a decent life and meet the needs of their young ones in the future. They also fear that they will not be able to keep up with the ever-rising consumption norm (Schor, 1999). Causes of the Rising Levels of Consumption According to Frank (2007), the high levels of consumption that are currently being experienced have come as a result of the wealthy pulling away from the middle-income earners. Data from the 1970s shows that, everyone’s income was growing at an average of three percent per year. The growth was constant among the wealthy, middle class and the poor. People at the bottom, the poor, lost ground, and the median income earners gained a little ground while the rich were experiencing substantial growth. Chief Executive Officers (C.E.Os) have experienced vast growth over the last three decades and have pulled away from the others (pg. 11) This has created a scenario whereby the rich can live in bigger houses and afford to take their children to the best schools. The rich can also spend more than the median earners since they have more financial freedom. To reach such levels, the median earners are forced to work long hours, borrow more money, save less and even commute long distances to and from work. The inequality that has risen, as a result, has impacted the savings rates in America since people are spending more than they earn. The rich spend more on luxurious items such as clothing to raise the bar for those below them. This process, known as the invisible hand is making things worse since the rich will not accept to be outpaced by their counterparts. The Invisible hand has, therefore, led to more spending. Schor (1999) agrees with Frank (2007) in regards to the inequalities that have been experienced over the years. According to Schor (1999), consumption patterns should be altered in order to achieve equality in the individual incomes. She notes that the income solution has given rise to consumption practices that have worsened the social inequalities and income distribution. She says that the lack of a consumer desire and need analysis and improper frameworks for understanding adequacy are downplaying the social belonging and standing that arises as a result of what people consume. This has made people consume more to raise their social status. According to Twitchell (2002), luxury is not only for the rich due to the new generation of consumers who are spending for luxury purposes. Luxury has been democratized to have a unifying effect on our culture; it is powerful and prevalent in all layers of our society. Shopping has, therefore, changed from a chore to an experience that people are identifying with. According to Twitchell (2002), this has created a rise in high levels of consumption. The Effects of Consumption Schor (1999), states that the extra consumption has created the need to keep up with the American culture. People are being forced to keep up with the social groups that they identify with, and this is negatively affecting the citizens. People are aiming for luxurious items rather than the simple comfort that should be the norm. In the early 1950s and 60s, people compared themselves with their neighbors, and this maintained their aspirations to moderate levels. But with time, the focus changed towards the television that is full of rich and upper-middle-class lifestyles. It led people to lose the perception of what is worth acquiring making many to go a long way to obtain luxurious items. Frank (2007) also agrees with Schor (1999) that the need to keep up within the middle class has led to high expenses and low savings. People are being forced to move into better homes in expensive school districts, and this is stretching their budgets. It is noted that median house prices are higher in school districts that have more income inequalities (Frank, 2007). As a result, many of the median households are living from paycheck to paycheck. According to Schor (1999), the low-income earners whose income is highly unstable are still stuck on consumerism. Such individuals are an easy target for credit card companies, and this has left them exposed to a total financial failure. The household level is affected since resources that could have been used for alternative purposes are taken away. In the United States, the wealthy people have enjoyed tax cuts over the years. This has led to delayed investments and infrastructure developments that are of high importance. These adverse ripple effects of the tax cuts have trickled down the society and even threatened our national security (Frank, 2007). Twitchell (2002) also notes that the luxurious levels of consumption and the overvaluing of different items are evil and indefensible. He says that it is inhumane, and this is happening while so many people around the world lack the necessities. Schor (1999) points that Americans spend too much based on the level of credit card debts that are leading personal bankruptcies. Another evidence is the fact that producers in America are forced to come up with business models to make their brands more appealing to consumers. Schor (1999) and Twitchell (2002) are of a more liberal approach towards consumers. They claim that consumers should be allowed to purchase whatever they wish since it is their choice. Schor (1999) further states that individuals who are concerned with equality should work closely with environmentalists in order to educate, to mobilize and alter consumption practices up to the household level. Frank comes up with a positive from the consumerism nature of the American rich by introducing a progressive consumption tax and scrapping the income tax entirely. The taxable consumption is the income minus the savings minus the standard deduction (Frank, 2007). The collected revenue will be used for important government functions. Conclusion It is clear that Twichell (2002) and Schor (1999) are of the notion that people should be allowed to purchase whatever they want. Schor (1999) later states that these people who are constantly trying to address inequality issues should join hands with consumers to address the adverse effects. Frank (2007) does not support this stand and, therefore, comes up with a consumption tax. He argues that, incomes are either used in two ways; as savings or for consumption. The government should not tax the savings but that which we have too much of, this translates to, the more you consume, the more the tax. The collected money will then be directed to fixing the negative effects of consumption i.e. on the environment. In studying all the three articles, it is apparent that the rich are at the top of consumption rates. It is because they have more money and so, they keep spending on luxurious items. The upper middle-income earners together with the median level income earners are forced to keep up. They are forced to live from paycheck to paycheck, and this is negatively affecting their lives since they are unable to save. The poor have not been left behind because they are also stuck on consumerism; they are targeted by credit card companies and are left in financial turmoil. This has led to the ever expanding levels of inequality, and it is up to the people to keep up or live comfortably as per their earnings. References Frank, R. (2007). how rising inequality harms the middle class. St. Johns University, 19(2). doi:10.1007/s10602-007-9033-1 Schor, J. (1999). The New Politics of Consumption. New.bostonreview.net. Retrieved 7 April 2015, from http://new.bostonreview.net/BR24.3/schor.html Twitchell, J. (2002). Let Them Eat Cake. UNZ.org. Retrieved 7 April 2015, from http://www.unz.org/Pub/AmSpectator-2002may-00070:70%20page%2070-75 Read More