what is consumerism 
consumerism is the idea that increasing the consumption of goods and services purchased in the market is always a desirable goal and that a person s well being and happiness depend fundamentally on obtaining consumer goods and material possessions consumerism is related to the predominantly keynesian idea that consumer spending is the key driver of the economy and that encouraging consumers to spend is a major policy goal from this point of view consumerism is a positive phenomenon that fuels economic growth others view the drive to obtain more material possessions as problematic causing individual anxiety and eroding the social fabric investopedia matthew collinsunderstanding consumerismin common use consumerism refers to the tendency of people living in a capitalist economy to engage in a lifestyle of excessive materialism that revolves around reflexive wasteful or conspicuous overconsumption in this sense consumerism is widely understood to contribute to the destruction of traditional values and ways of life consumer exploitation by big business environmental degradation and negative psychological effects thorstein veblen for example was a 19th century economist and sociologist best known for coining the term conspicuous consumption in his book the theory of the leisure class 1899 conspicuous consumption is a means to show one s social status especially when publicly displayed goods and services are too expensive for other members of the same class this type of consumption is typically associated with the wealthy but can also apply to any economic class following the great depression consumerism was largely derided however with the u s economy kickstarted by world war ii and the prosperity that followed at the end of the war the use of the term in the mid 20th century began to have a positive connotation during this time consumerism emphasized the benefits that capitalism had to offer in terms of improving standards of living and an economic policy that prioritized the interests of consumers these largely nostalgic meanings have since fallen out of general use as consumers spend economists presume that consumers benefit from the utility of the consumer goods that they purchase but businesses also benefit from increased sales revenue and profit for example if car sales increase auto manufacturers see a boost in profits additionally the companies that make steel tires and upholstery for cars also see increased sales in other words spending by the consumer can benefit the economy and the business sector in particular some economists view increasing levels of consumer spending as a critical goal in building and maintaining a strong economy irrespective of the benefit to the consumer or society as a whole others however have grown quite concerned about the negative societal effects of hyper consumerism 1the economic impact of consumerismaccording to keynesian macroeconomics boosting consumer spending through fiscal and monetary policy is a primary target for economic policymakers consumer spending makes up the lion s share of aggregate demand and gross domestic product gdp so boosting consumer spending is seen as the most effective way to steer the economy toward growth consumerism views the consumer as the target of economic policy and a cash cow for the business sector with the sole belief that increasing consumption benefits the economy saving can even be seen as harmful to the economy because it comes at the expense of immediate consumption spending consumerism also helps shape some business practices planned obsolescence of consumer goods can displace competition among producers to make more durable products marketing and advertising can become focused on creating consumer demand for new products rather than informing consumers conspicuous consumptionas standards of living rose after the industrial revolution conspicuous consumption grew high rates of conspicuous consumption can be a wasteful zero sum or even negative sum activity as real resources are used up to produce goods that are not valued for their use but rather for the image they portray in the form of conspicuous consumption consumerism can impose enormous real costs on an economy consuming real resources in zero or negative sum competition for social status can offset the gains from commerce in a modern industrial economy and lead to destructive creation in markets for consumers and other goods sociologists view consumerism as symbolic consumption that may not maximize individual utility instead it can serve as a signal to others and help establish one s identity when it comes to being a consumer social actors e g peer pressure in groups advertisers limit your free choice 