Economic Effects of Consumerism Essay Example | Topics and Well Written Essays - 750 words

Economic Effects of Consumerism - Essay ExampleThe purpose of any economic system should be to meet the basic inescapable demands of its members in an cheap and sustainable manner. However, 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. rough of the economic effects of consumerism arePlanned Obsolescence / Dissatisfaction. Rather than striving for a state of equilibrium, consumerism dictates that there must be an exponential increase in demand. thereof the advent of the disposable culture which 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 buy a new one. These two factors combined serve to promote consumerism to unhealthy lev els, hardly at the same time promote 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 worlds rich, confined to a few countries and the worlds poor, spread out every over the globe. Globally, 20% of the worlds people in highest-income countries account for 86% of total private consumption expenditure - the poorest 20% a miniscule 1.3% (UNDP). As exhibit 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, still rather to satisfy the egos of the rich. In economic terms such a pattern is un-sustainable 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 though promoting growth is nevertheless, not only undermining the environmental resource base but it is also exacerbating inequalities.ReferencesShah Anup, Behind Consumption and Consumerism. Retrieved from www.globalissues.org/TradeRelated/Consumption.aspUnited Nations Development Programme (UNDP) Human Development Report 1998 OverviewWikipedia, Consumerism. Retrieved from