Essay about Consumerisms Role in Americas Economy

What is the effect of consumerism on the American economy? The father of modern economics and capitalism, Adam Smith, maintained that ambition and acquisitiveness, two drivers of a market economy, were merely illusions. He believed it is these illusions that compel a society to work for what they believe will make them happy which, in turn, leads to a consumer-driven economy. Indeed, consumerism broadens a society’s economy through a wider selection of goods and services, but does it also increase the power and controls of a society’s government through consumer activism and regulation? Supporters of consumerism point out that indebtedness has long been a part of America’s history. Until the 20th century, Americans believed indebtedness†¦show more content†¦The only way to improve the practices of businesses, large and small, is through regulation and reform. Supporters believe the current reform proposals will restrain the carelessness of business and p revent future crises. Congressional regulation, they insist, also lifts the overall living standards for all members of society. Does a society benefit or suffer as a result of increased consumerism? It absolutely benefits, say supporters. Debt drives consumer spending, which in turn helps the economy grow. When people spend more money, businesses earn higher profits and are able to hire more workers. Consumerism promotes the fueling of economic progress through the development of manufacturing and the rise of living standards for all Americans and not just the wealthy. Opponents argue that societal development suffers as consumerism and the ensuing governmental regulations increase. They point to the fact that working class wages are stagnating and prices are increasing. Avoiding debt has become almost impossible for most families because they don’t have enough money to survive. This inequality leads not only poverty, but also to increased levels of consumption as consumers spend more to raise their overall standard of living. Critics point to the fact that despite the increase in consumerism, average wages have slowed in growth over the last three decades and have actually gone backwards for those members with less education in America. Wage