READING 6.3 Why Do We Consume So Much? JULIET B. SCHOR The United States enjoys a level of material consumption far beyond the dreams of earlier generations. Our culture celebrates consumption, and consumerism and materialistic values dominate many people's lives. Why do we consume so much? In answering that question, economist Juliet B. Schor identifies three structural features of our economic system that have led us down a path of excessive consumerism. First, we are locked into a "cycle of work and spend." Second, we have failed to value the earth's capital, and third consuming has become a means to social esteem and belonging. Her provocative essay harks back to themes in Chapter 3 (on equality and injustice) and Chapter 4 (on the nature and walues of capitalisme) and anticipates the environmental issues discussed in the next chapter and some of the concerns of Chapter 9 Con today's workplace). "Why do we consume so much?" Observers of consumption have answered this question in many ways. Because it's our human nature. Because ads tell us to. Because we can't help ourselves. Because our economic system needs us to. Because we are trapped in a fruitless dynamic of desire, acquisition, and disappointment. Because he who dies with the most toys wins Just because we can Thore news artisten i haliwanan tina we consume the way we do, but also how we might start to live differently. But before proceeding I need to clarify two points Whom do i mean by "we"? And what do I mean by so much? The 'we" is straightforward. I do not mean the global we. indeed, the global "South" doesn't consume enough-at last not in terms of basics such as food, clothing, Shelter. In 1999, per capita GDP in the Less Developed Countries for hal Ch 6241 imagen hanno Aa 510 MacBook Air ble Tab Window ON Help Wed 8:14 PM 1 ) 100% iCloud Storage is Almost Full Upgrade your storage to keep cf/3381/4/40.00:52.0 using iCloud. myWM Portal Lo Steps for disablin Google https://fpstudent Google Translate 10-30134568020 century. Indeed, is hard to describe our current consumer pat yield a society in which Americans are more you terns in terms other than excess. For example, the average U.S. gated communities, to tolerate poverty in their midst, to disavow home has increased by more than 50% since the 1970s, rising responsibility for others and to abdicate a sense of community more than 400 square feet, from 1,905 in 1987 to 2,322 in responsibility or common purpose... 1999 alone. At the same time, there are an estimated 2 milion These are strong claims. And they go very much against homeless Americans, about 40% of whom are family groups.) the conventional wisdom, both in economics, and throughout The number of vehicles per person has increased, as has the the culture more generally. What is that conventional wis- size and luxuriousness of those vehicles. The culture of excess dom? First, that consumption is good. That new and improved" has yielded $20,000 outdoor grills: $17,000 birthday parties for products really are improvements. That we consume because teen girls at FAO Schwarz, diamond studded bras from Victoria's we love to. And that consuming has made our lives richer, Secret: a proliferation of Jaguars, Porsches and other luxury fuler, more enjoyable, and better, in meaningful and important cars; status competitions in stone walls: professional quality ways. Second, that more is always better. After all, economics appliances for people who are never home to cook, designer argues, if it weren't one could always ignore the extra con clothes for six year olds, and bed sheets costing a thousand dol sumption and be at least as well off as one was without it.) This lars aplece. If these examples seem extreme, consider the more superiority of more implies that sufficiency... is never attained mundane example of clothes. Even ordinary ones. Clothing used in foto. (We may easily reach satiation with particular com- to be costly, both because of materials and labor. Now, because modities, but not for consumption as a whole.) And third, the of the combination of foreign sweatshops that don't even pay conventional wisdom argues that the consumer market is best workers enough to eat, and artificially cheap materials, clothes left relatively unattended by public policy, with the exception of are so plentiful that you can find them sold like beans or rice some special cases (eg. dangerous products). The consumer by the pound. Charities are inundated with enormous amounts is sovereign and knows what he or she likes far better than the 6 Aa MacBook Air ICloud Storage is Almost Full Ugrade your storage to keep using Cloud Google Translate 19-30134566820 1339/4/480.00:5.65 www Portale o Steps for disabilin https//pludent. gle government'Attempts to improve social welfare by steering consumption in particular directions will only backfire. Now these are not conclusions that follow logically from economic theory. Rather, they represent the consensus view from the discipline, consumer economics and history as it has been praction. As I shall argue shortly. I believe that much of This consensus is based on faulty assumptions about how and why we consume. Assumptions that if altered, can lead to some very different conclusions On the other side, there is also a conventional wisdom among the critics of consumer Outure. They begin with the view that while consumption may at one time have contributed signiti cant to human welfare, once basic needs have been satisfied it is far less capable of doing so. New Coke is no better than Old Besides, the a ssay, we drink too much Cole anyway, and it's not good for us. Far better to drink water. So why are we paying card dollars for a can of sugar water trots our teeth? Answers range from the observation that it's addictive, to the fact that it's everywhere through monopolistic practices such as exclusive contracts in schools). And most importantly, in the critics' accounts, we're seduced into consuming by powerful advertising ages, which equate the product with being cool young vital, or becoming an object of desire. The theme of many e s of contemporary consumption is a consuming The Cycle of Work and Spend The first is what I have called "the cycle of work and spend." In the standard economic story, the level of consumption is set mainly by people's choices about how much to work, and therefore how much income to earn.... The individual chooses between hours at work which yield income) and leisure la "good" in itself, but a costly one because it entails forego- ing income. The income earned then determines the level of consumption... Thus, individual workers/consumers choose the level of working hours and the quantity of consumption. In this story, there is no possibility of too much" or "too little consumption then Those terms make no sense. Here, it is individuals preferences that determine the quantity of consuming and free time. And whatever quantity is chosen must be optimal Now consider a situation in which individuals are not free to choose their hours of work, because employers set work norms and schedules, and those are tied to jobs. The individual has the ability to choose whether to work or not. But having taken a job, the hours are relatively inflexible. Furthermore, Imagine that employers have a bias against allowing part-time or what I have called "short hour jobs. Why is this? Because benefits are paid per person, not per hour, because employers prefer red per person oder to hire fewer people and because employees who work longer Aa 510 22 iCloud Storage is Almost Full Upgrade your storage to keep fi/3304/420.00:52.0 using iCloud WVM Portal Lo. 9 Steps for disabin. Google https://tipstudent. Google Translate 10-30134588820... many critiques of contemporary consumption is that consuming to hire fewer people, and because employees who work longer is a false god-our new religion--and that it takes us away from hours are more financially dependent on the firm. So the option the true and durable satisfactions life has to offer. Consuming of working less and earning less is not fully available. To see provides only temporary pleasures, is excessively hedonistic and the point, consider that where employees do have the option to the point consider that where employees seductive, and speaks not to the best in us, but often the worst work short hours, they must pay large penalties in the form Most of these critiques center on the role of advertising, mar of fewer or no benefits, and a significant reduction in upward keting, and the media, to account for how we get trapped into career mobility. unsatisfying consumerist lifestyles. There is also a dynamic aspect to this configuration: I have sketched the two ends of the spectrum of belief when productivity growth occurs, employers do not offer their about consumer society. While each contains important truths, employees the option of using it to reduce hours of work, but I believe both are flawed. I accept the proposition that consum pass it on as income. And that turns into consumption.... ing is generally a good to the individual the idea that people If there is not a freely functioning market is hours, and persistently act in ways which are so detrimental to their well employers inhibit hours' reductions, then there is no sense in being is hard for an economist to swallow. I say "generally which one can describe the quantity of consumption as opti- because there is plenty of empirical validation for cases in which mal. Rather, we get too much income and not enough leisure. consumption is out of control at the individual level) But I agree It is not advertising, or marketing, or addictive commodities with the critics that, as a society, we have too much of it. Instead which create this too much." It is the fact that more leisured, of focusing on advertising and marketing, I argue that there are less consumerist lifestyles are structurally blocked in the structural features in the operation of the economic system that labor market. have led us down a path of excessive consumerism Having been offered only the long hours, high-income What are those structural features and how do they operate? choice, it's hardly surprising that people choose to do lots of Aa MacBook Air T- 401/4/400.00:6.32 VM Portal to Upgrade your storage to keep using iCloud 19-30134588820 Steps for disablin. Google https://tfpstudent. Google Translate consuming. After working so hard, they feel deserving of their consumer comforts and louries. Indeed, consumption is the major form of reward for long hours and a harried pace of work. And consumer expenditures have become one means by which people with frenetic lives keep it all going-whether it's stress-busters like vacations, massages, or restaurant meals the contracting out of household Services or the purchase of time-saving commodities.... The too much work, not enough leisure story is more than theoretically possible. Average annual hours per capita have risen by 178 since 1973. Although some of the rise in hours of paid work has been accounted for by a shift from women's unpaid household production into employment, the picture from a household basis is unambiguous. The average household is devoting hundreds of additional hours to paid work in order to maintain its standard of living. According to the Council of Economic Advisers, between 1969 and 1999, annual hours of work for married couple households rose 18% (497 hours) and 28% in single parent households 297 hours). This has led to a widespread sense of time-squeeze. The fraction of Americans reporting that they almost never have time on their hands rose from 41% in 1982 to 56% in 1996 in the National Survey of the Changing Workforce done by the Families and Work Institute, between a quarter and in practice, ecological resources are treated as externalities or free goods after thoughts in a world where production is created by capital and labor. The discipline of economics, and Society more generally, has failed to consider the overall effects of treating natural capital so cavalierly. One result is that we con s ume too much in foto. If we correctly accounted for the costs of ecological resources, or committed to using the sustainably so that they would renew, rather than degrade over time, we would likely be producing less overall and taking more leisure). Why? Because consumption would become more costly relative to free time. What we consume would also shift toward less ecologically damaging and costly products and services. Fewer SUVs and airplane trips. More organic farming. Fewer plastics and chemi cals. Smaller but more durable wardrobes, cotton grown with fewer or no pesticides. (10% of the world's pesticide use is for cotton.) Less meat, more grain. Shade grown coffee. Solar and wind power, instead of rising, as it has in the last decade, resi dential energy use would fall, as people economized on space and shifted toward energy efficient practice. Ditto paper uso, which incredibly enough given the introduction of computers, is rising in the United States. Is the Ecological Bias a Serious One? Aa xos TOP Upor NOIN Cloud Storage AMOS Full Upgrade your storage to keep /4/480.00:39.1 using iCloud Portal Lo. * Steps for disablin. Google https/tfpstudent. Google Translate 19-30134588829 (Uru Indepeed sure Economic Advisers, between 1969 and 1999, annual hours of cotton.) Less meat, more grain. Shade grown coffee. Solar and work for married couple households rose 18% (497 hours) and wind power. Instead of rising, as it has in the last decade, resi- 28% in single-parent households (297 hours). dential energy use would fall, as people economized on space This has led to a widespread sense of time-squeeze. The and shifted toward energy efficient practice. Ditto paper use, fraction of Americans reporting that they almost never have which incredibly enough given the introduction of computers, is time on their hands rose from 41% in 1982 to 56% in 1995 rising in the United States In the National Survey of the Changing Workforce done by the Families and Work Institute, between a quarter and Is the Ecological Bias a Serious One? a third of all employees reported fairly serious and frequent problems of inadequate time for family, being in a bad mood Ecological models suggest yes, that the rates at which resource or being too tired. A third of parents and a quarter of non- use, pollution and ecological degradation are occurring far parents reported that often or very often" "they do not have exceed the earth's absorption capacity.... One reason is that the energy to do things with their families or other important we have already undermined a significant amount of the earth's people in their lives." absorption capacity, so that some regenerative mechanisms are The growth of work effort and time stress has resulted in no longer able to reverse the overshoot. Dowiward spirals begin increased desires for more time off the job. The National Survey to dominate positive feedback loops. The model's effects can of the Changing Worldorce found that 63% of all employees said be seen in the concrete problems of: they worked more hours than they wished to with median over- Global warming, Warmer climate is associated with toxic work at 11 hours per week. This..supports my contention of algal blooms, increased flooding and droughts, thawing of a "cycle of work and spend." the permafrost, increased weather uncertainty, deforesta The Ecological Bias tion through insect damage, and increased transmission of vector bome infections. The United States, with 5% of the The second structural feature that creates too much consump world's population is responsible for 24% of global carbon tion is the overuse of natural capital" ... the ecological dioxide emissions resources of the earth). This is a well-known argument within Species extinction Among birds and mammals, species economics about particular kinds of pollution. It air" is a free are now going edinct at rates that are estimated to be Aa 40 MacBook Air delet (4/480.00:52.0 Upgrade your storage to keep using Cloud Portal Lo Steps for disablin Google https://tfpstudent. Google Translate 19-30134588829 by the Families and Work Institute, between a quarter and Is the Ecological Bias a Serious One? a third of all employees reported fairly serious and frequent problems of inadequate time for family, being in a bad mood Ecological models suggest yes, that the rates at which resource or being too tired. A third of parents and a quarter of non use, pollution and ecological degradation are occurring far parents reported that often or very often they do not have exceed the earth's absorption capacity.... One reason is that the energy to do things with their families or other important we have already undermined a significant amount of the earth's people in their lives." absorption capacity, so that some regenerative mechanisms are The growth of work effort and time stress has resulted in no longer able to reverse the overshoot. Downward spirals begin increased desires for more time off the job. The National Survey to dominate positive feedback loops. The model's effects can of the Changing Worldorce found that 63% of all employees said be seen in the concrete problems of: they worked more hours than they wished to, with median over- Global warming Warmer climate is associated with foc work at 11 hours per week. This supports) my contention of algal blooms, increased fooding and droughts, thawing of a'cycle of work and spend." the permafrost, increased weather uncertainty deforesta tion through insect damage, and increased transmission of The Ecological Bias vector-bome infections. The United States with 5% of the The second structural feature that creates too much consump world's population is responsible for 245 of global carton tion is the overuse of natural capitale , the ecological decide emissions resources of the earth). This is a well-known argument within Species extinction. Among birds and mammals species economics about particular kinds of pollution. If air is a free are now going extinct at rates that are estimated to be resource, corporations will polute it too much because they 100 to 1,000 times the natural rate of inction. One in do not have to pay for their pollution eight known plant species is threatened with extinction 8 Aa To De PART THREE BUSINESS AND SOCIETY Ecosystem depletion. Since 1970, freshwater ecosystems have declined by 50%, marine ecosystems have declined by 30%, and world forests have declined by 10%. This rate of depletion is unprecedented in human history. Indeed, current rates of environmental resource use dwarf human usage in all of human history.... Water shortages. Approximately one-third of the world's population now lives in areas with moderate to heavy stress on water supplies, and is current trends continue that num ber is expected to be two-thirds in 30 years. Already. 28% of the world's population lacks access to safe drinking water, and 5 million people die each year from inadequate access water into socially differentiated communities. Veblen made this point most famously a hundred years ago. His analysis was based mainly on the wealthy and the would-be wealthy, for whom attaining and displaying visible wealth had become the sine qua non of social standing. But the phenomenon is far broader today, with the large majority of the population participating Today it is less insidious in some ways, because it's not only offensive get the big diamond because my best friend doesn't have one), but has become defensive ( get the big diamond because my best friend does have one). In The Overspent American, I discussed the ways in which this process has changed. Fifty years ago it was a comparison among peers. "Keeping up with the Joneses--the colloquial description of consumption competitions, occurred mainly within a neighborhood setting. Because neighborhoods are relatively homogeneous in terms of the social status and economic resources of their members, the folks keeping up with the Joneses tended to be their equals. They did aspire, but rarely more than to increase their consumer expenditures by 10-20% Smiths wanted the Joneses Chevy and nifty fridge, not the Rockefellers' mansions and art collections. That has changed. The reference groups" (o use the sociological term that Americans now use to calibrate their ne mar sense have harm owlane Aa