Detrimental Impacts Of Consumerism

The Industrial Revolution (18th-20th century) was a pivotal era in human history, as it replaced the labour-intensive production process with a machine-driven process, reshaping production and distribution. The invention of the water frame by Arkwright (1769) revolutionised textile production, James Watt’s improved steam engine (1771), railway network, canal system, production of iron and steel, construction of roads and bridges, the widespread use of electricity – all enabled mass production and cost reduction – which eventually laid a foundation for expanding trade beyond the urban elite. These events are the cornerstones of a modern consumer-based capitalist society. 

In the early 20th century, rapid industrialisation increased the income of the middle class, which boosted access to consumer goods such as automobiles and domestic appliances such as vacuum cleaners and washing machines. Cities were expanding, departmental stores were mushrooming, and companies were cultivating consumer culture in the burgeoning class by linking it with social status. Luxury destinations, such as Monte Carlo, Sanremo, and St. Moritz, attracted European aristocrats and institutionalised conspicuous consumption. World War I (1914-1918) disrupted the growing consumer culture, but it resumed after 1920 until the Great Depression of 1929. As the economy was gripped by the threat of war, inflation, and uncertainty, the demand for consumer goods plummeted until the end of WWII (1939-1945).

Aggressive marketing 

Following World War II, the Western world witnessed unprecedented growth due to changes in the social and political order. Companies used aggressive marketing strategies, and television was instrumental in influencing their purchasing choices. The expansion of banking institutions and the introduction of credit cards (Diner Club 1950 and American Express 1959) have fuelled consumer culture by making credit easily available and promoting the buy now, pay later mindset. Globalisation and liberalisation gained momentum in the late 1980s, and many countries embraced the open economy policy, which removed foreign trade barriers, integrated the domestic market with the world, eased the availability of imported goods, and made consumption cheaper and convenient. 

Modern society is characterised by relentless purchasing behaviour driven by the internet and social media. Although the primary objective of these platforms is to connect people, the business sector is exploiting them to create product hype. Algorithms track browsing history and show targeted advertisements. Moreover, brands use paid promotions, affiliate marketing, unboxing videos, and shorts to boost their sales. E-commerce businesses are making the shopping experience seamless by offering 24/7 shopping access, fast shipping, easy payment, and return policies. Additionally, in contemporary times, film, novel, and newspaper portray the luxurious life through characters, advertisements and stories in a glamorous way. 

Economists regard consumer spending as a key driver of the economy in terms of production, job creation, innovation, and overall business expansion. However, unsustainably entrenched consumption behaviour and corporate profit motive hurt the economy, harm public health, degrade the environment, and affect social life. Although excess consumption may amplify short-term growth, it may also undermine future consumption and growth. Indulgent spending may trigger a bubble and recession in the economy and increase personal debt and financial vulnerabilities. 

Inequality in society may increase because only high-income people can leverage consumer-driven investment opportunities. Various products with little or no difference (taste, size, package, and other features) cause consumers to suffer from the paralysis of choice. This leads to confusion, delays in purchasing decisions, overthinking, post-purchase regret, and reduced product satisfaction. To stimulate demand, brands use time-limited offers, discount offers, exchange offers, and buy more and save more offers, which foster a sense of urgency, causing fear of missing out (FOMO) and anxiety among consumers. Additionally, advertisements for unhealthy products can generate alarming situations of malnourishment, obesity, and various chronic diseases. 

As stated in the movie "Fight Club", we are consumers, by-products of a lifestyle obsession. Material possessions have become a source of identity and a yardstick for measuring success. Influencers and celebrities try to gain attention by displaying their assets and living standards on social media, creating demonstrative effects among followers. Love and affection are expressed by exchanging gifts rather than emotional bonds. This tendency may explain why cases of domestic violence and divorce rates have grown these days. 

The fashion industry adopts fast production cycles and frequently releases new collections. Electronics and automobile companies also launch their products annually with the notion of "latest is the best,” but this business model costs the environment. According to a report of the United Nations Environmental Programme (UNEP), textile industries, which emit 8 per cent of greenhouse gases, are responsible for 9 per cent of microplastics, and consume 215 trillion liters of water annually. The cheap and less durable goods produced by this industry often align with labour exploitation and poor working conditions. Electronics and automobiles generate e-waste, metals, and plastics, fostering rare-earth mining, deforestation, and exacerbating climate change and global warming.

Detrimental impact 

To address the detrimental impact of consumerism, the joint efforts of individuals, the business sector, and the government are necessary. Individuals must be able to differentiate between wants and needs before making a purchase decision. Celebrities and influencers must stop peacocking and refrain from flaunting their wealth on social media. Spiritual leaders must promote minimalist lifestyles. The business sector should produce sustainable, eco-friendly, and long-lasting products integrated with corporate social responsibility (CSR). 

Manipulative marketing strategies should be replaced by ethical marketing. The government should regulate advertisements that target children and endorse acts of repair, reuse, recycling, and waste management. Fiscal instruments, such as environmental and luxury taxes, can be effective in reducing the negative impacts of consumerism. The synergy between these three units enables society to escape the labyrinth of consumerism.

  (The author is pursuing an MPhil in Economics at TU)