Consumer capitalism

Last updated

Consumer capitalism is a theoretical economic and social political condition in which consumer demand is manipulated in a deliberate and coordinated way on a very large scale through mass-marketing techniques, to the advantage of sellers.

Contents

This theory is controversial. It suggests manipulation of consumer demand so potent that it has a coercive effect, amounts to a departure from free-market capitalism, and has an adverse effect on society in general. According to one source, the power of such 'manipulation' is not straightforward. It depends upon a new kind of individualism - projective individualism, where persons use consumer capitalism to project the kind of person who they want to be. [1]

Some use the phrase as shorthand for the broader idea that the interests of other non-business entities (governments, religions, the military, educational institutions) are intertwined with corporate business interests, and that those entities also participate in the management of social expectations through mass media.

Harold Wilhite, a Professor of Social Anthropology and Research, emphasizes that understanding capitalism is crucial for grasping the roots of unsustainable consumption. In his 2016 book The Political Economy of Low Carbon Transformation, he places capitalism at the core of his analysis. Drawing from thinkers such as Karl Marx, David Harvey, and Thomas Piketty, Wilhite examines how the foundational elements of capitalism — economic growth, individual ownership, marketization, product differentiation, and turnover — hinder sustainability transformations and fuel increasing consumption. He delves further into the societal impacts of capitalism’s growth imperative, arguing that it not only shapes systems of provision but also fosters cultures and habits of perpetual consumption growth [2] .

Origins

The origins of consumer capitalism [3] are found in the development of American department stores from the mid 19th Century, notably the advertising and marketing innovations at Wanamaker's in Philadelphia. [4] Author William Leach describes a deliberate, coordinated effort among American 'captains of industry' to detach consumer demand from 'needs' (which can be satisfied) to 'wants' (which may remain unsatisfied). This cultural shift represented by the department store is also explored in Émile Zola's 1883 novel Au Bonheur des Dames , which describes the workings and the appeal of a fictionalized version of Le Bon Marché.

In 1919 Edward Bernays began his career as the 'father of public relations' and successfully applied the developing principles of psychology, sociology and motivational research to manipulate public opinion in favor of products like cigarettes, soap, and Calvin Coolidge. New techniques of mechanical reproduction developed in these decades improved the channels of mass-market communication and its manipulative power. This development was described as early as the 1920s by Walter Benjamin and related members of the Frankfurt School, who foresaw the commercial, societal and political implications.

In business history, the mid-1920s saw Alfred P. Sloan stimulating increased demand for General Motors products by instituting the annual model year change and planned obsolescence, a move that changed the dynamics of the largest industrial enterprise in the world, away from technological innovation and towards satisfying market expectations.

Criticism

A criticism of consumer capitalism has been made by the French philosopher Bernard Stiegler. He argues that capitalism today is governed not by production but by consumption, and that the techniques used to create consumer behavior amount to the destruction of psychic and collective individuation. The diversion of libidinal energy toward the consumption of consumer products, Stiegler argues, results in an addictive cycle, leading to hyperconsumption, the exhaustion of desire, and the reign of symbolic misery. [5]

See also

Related Research Articles

In economics, a free market is an economic system in which the prices of goods and services are determined by supply and demand expressed by sellers and buyers. Such markets, as modeled, operate without the intervention of government or any other external authority. Proponents of the free market as a normative ideal contrast it with a regulated market, in which a government intervenes in supply and demand by means of various methods such as taxes or regulations. In an idealized free market economy, prices for goods and services are set solely by the bids and offers of the participants.

<span class="mw-page-title-main">Index of economics articles</span>

This aims to be a complete article list of economics topics:

An information society is a society or subculture where the usage, creation, distribution, manipulation and integration of information is a significant activity. Its main drivers are information and communication technologies, which have resulted in rapid growth of a variety of forms of information. Proponents of this theory posit that these technologies are impacting most important forms of social organization, including education, economy, health, government, warfare, and levels of democracy. The people who are able to partake in this form of society are sometimes called either computer users or even digital citizens, defined by K. Mossberger as “Those who use the Internet regularly and effectively”. This is one of many dozen internet terms that have been identified to suggest that humans are entering a new and different phase of society.

<span class="mw-page-title-main">Consumerism</span> Aspect of socio-economic order

Consumerism is a social and economic order in which the aspirations of many individuals include the acquisition of goods and services beyond those necessary for survival or traditional displays of status. It emerged in Western Europe before the Industrial Revolution and became widespread around 1900. In economics, consumerism refers to policies that emphasize consumption. It is the consideration that the free choice of consumers should strongly inform the choice by manufacturers of what is produced and how, and therefore influence the economic organization of a society.

Overconsumption describes a situation where a consumer overuses their available goods and services to where they can't, or don't want to, replenish or reuse them. In microeconomics, this may be described as the point where the marginal cost of a consumer is greater than their marginal utility. The term overconsumption is quite controversial in use and does not necessarily have a single unifying definition. When used to refer to natural resources to the point where the environment is negatively affected, it is synonymous with the term overexploitation. However, when used in the broader economic sense, overconsumption can refer to all types of goods and services, including manmade ones, e.g. "the overconsumption of alcohol can lead to alcohol poisoning". Overconsumption is driven by several factors of the current global economy, including forces like consumerism, planned obsolescence, economic materialism, and other unsustainable business models and can be contrasted with sustainable consumption.

<span class="mw-page-title-main">Commodity fetishism</span> Concept in Marxist analysis

In Marxist philosophy, commodity fetishism is the perception of the economic relationships of production and exchange as relationships among things rather than among people. As a form of reification, commodity fetishism presents economic value as inherent to the commodities, and not as arising from the workforce, from the human relations that produced the commodity, the goods and the services.

<span class="mw-page-title-main">Market saturation</span> When a product reaches peak demand and sales struggle to grow further

In economics, market saturation is a situation in which a product has become diffused (distributed) within a market; the actual level of saturation can depend on consumer purchasing power; as well as competition, prices, and technology.

Post-Fordism is a term used to describe the growth of new production methods defined by flexible production, the individualization of labor relations and fragmentation of markets into distinct segments, after the demise of Fordist production. It was widely advocated by French Marxist economists and American labor economists in the 1970s and 1980s. Definitions of the nature and scope of post-Fordism vary considerably and are a matter of debate among scholars.

The term culture industry was coined by the critical theorists Theodor Adorno (1903–1969) and Max Horkheimer (1895–1973), and was presented as critical vocabulary in the chapter "The Culture Industry: Enlightenment as Mass Deception", of the book Dialectic of Enlightenment (1947), wherein they proposed that popular culture is akin to a factory producing standardized cultural goods—films, radio programmes, magazines, etc.—that are used to manipulate mass society into passivity. Consumption of the easy pleasures of popular culture, made available by the mass communications media, renders people docile and content, no matter how difficult their economic circumstances. The inherent danger of the culture industry is the cultivation of false psychological needs that can only be met and satisfied by the products of capitalism; thus Adorno and Horkheimer perceived mass-produced culture as especially dangerous compared to the more technically and intellectually difficult high arts. In contrast, true psychological needs are freedom, creativity, and genuine happiness, which refer to an earlier demarcation of human needs, established by Herbert Marcuse.

In economics and industrial design, planned obsolescence is the concept of policies planning or designing a product with an artificially limited useful life or a purposely frail design, so that it becomes obsolete after a certain predetermined period of time upon which it decrementally functions or suddenly ceases to function, or might be perceived as unfashionable. The rationale behind this strategy is to generate long-term sales volume by reducing the time between repeat purchases. It is the deliberate shortening of the lifespan of a product to force people to purchase functional replacements.

Eco-capitalism, also known as environmental capitalism or (sometimes) green capitalism, is the view that capital exists in nature as "natural capital" on which all wealth depends. Therefore, governments should use market-based policy-instruments to resolve environmental problems.

<span class="mw-page-title-main">Criticism of capitalism</span> Arguments against the economic system of capitalism

Criticism of capitalism typically ranges from expressing disagreement with particular aspects or outcomes of capitalism to rejecting the principles of the capitalist system in its entirety. Criticism comes from various political and philosophical approaches, including anarchist, socialist, Marxist, religious, and nationalist viewpoints. Some believe that capitalism can only be overcome through revolution while others believe that structural change can come slowly through political reforms. Some critics believe there are merits in capitalism and wish to balance it with some form of social control, typically through government regulation.

<span class="mw-page-title-main">Anti-consumerism</span> Sociopolitical ideology involving intentionally and meaningfully reducing consumption

Anti-consumerism is a sociopolitical ideology. It has been described as "intentionally and meaningfully excluding or cutting goods from one's consumption routine or reusing once-acquired goods with the goal of avoiding consumption". The ideology is opposed to consumerism, being a social and economic order in which the aspirations of many individuals include the acquisition of goods and services beyond those necessary for survival or traditional displays of status.

Economic planning is a resource allocation mechanism based on a computational procedure for solving a constrained maximization problem with an iterative process for obtaining its solution. Planning is a mechanism for the allocation of resources between and within organizations contrasted with the market mechanism. As an allocation mechanism for socialism, economic planning replaces factor markets with a procedure for direct allocations of resources within an interconnected group of socially owned organizations which together comprise the productive apparatus of the economy.

The consumer revolution refers to the period from approximately 1600 to 1750 in England in which there was a marked increase in the consumption and variety of luxury goods and products by individuals from different economic and social backgrounds. The consumer revolution marked a departure from the traditional mode of life that was dominated by frugality and scarcity to one of increasingly mass consumption in society.

Degrowth is an academic and social movement critical of the concept of growth in gross domestic product as a measure of human and economic development. The idea of degrowth is based on ideas and research from economic anthropology, ecological economics, environmental sciences, and development studies. It argues that modern capitalism's unitary focus on growth causes widespread ecological damage and is unnecessary for the further increase of human living standards. Degrowth theory has been met with both academic acclaim and considerable criticism.

Production for use is a phrase referring to the principle of economic organization and production taken as a defining criterion for a socialist economy. It is held in contrast to production for profit. This criterion is used to distinguish communism from capitalism, and is one of the fundamental defining characteristics of communism.

Economic democracy is a socioeconomic philosophy that proposes to shift ownership and decision-making power from corporate shareholders and corporate managers to a larger group of public stakeholders that includes workers, consumers, suppliers, communities and the broader public. No single definition or approach encompasses economic democracy, but most proponents claim that modern property relations externalize costs, subordinate the general well-being to private profit and deny the polity a democratic voice in economic policy decisions. In addition to these moral concerns, economic democracy makes practical claims, such as that it can compensate for capitalism's inherent effective demand gap.

In Karl Marx's critique of political economy and subsequent Marxian analyses, the capitalist mode of production refers to the systems of organizing production and distribution within capitalist societies. Private money-making in various forms preceded the development of the capitalist mode of production as such. The capitalist mode of production proper, based on wage-labour and private ownership of the means of production and on industrial technology, began to grow rapidly in Western Europe from the Industrial Revolution, later extending to most of the world.

References

  1. ↑ James, Paul; Scerri, Andy (2012). "Globalizing Consumption and the Deferral of a Politics of Consequence". Globalizations. 9 (2): 225–240. Bibcode:2012Glob....9..225J. doi:10.1080/14747731.2012.658249. S2CID   67761604.
  2. ↑ Hansen, Arve (2023). Capitalism, Consumption, and the Transformation of Everyday Life: The Political Economy of Social Practices. Springer Nature. pp. 27–54. ISBN   9783031110696.
  3. ↑ Silla, Cesare (2018). The Rise of Consumer Capitalism in America, 1880-1930. London-New York: Routledge. ISBN   9781315399645.
  4. ↑ Leach, William (1993). Land of Desire. New York: Pantheon Books. ISBN   9780307761149.
  5. ↑ Stiegler discusses consumer capitalism in his article The Disaffected Individual. His response to the situation can be discerned by reading the manifesto of his political group, Ars Industrialis.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.