AdduOnline Special Report

AdduOnline Special Reports

Monday May 12, 2003

Creating the Consumer

The want to consume is nothing new. It is has been around for millennia. People need to consume resources to survive. However, consumption has evolved as people have ingeniously found ways to help make their lives simpler and/or to use their resources more efficiently. Of course, with this has come the want to control such means. Hence, the consumption patterns have evolved over time based on the influence of those who can control it. As a result, there is tremendous waste within this system, to maintain such control and such disparities. (This will be discussed in more detail later as well.)

Lavish consumption used to be for the highly privileged
The full-blown commercialized consumption that most in the wealthy nations (and the wealthier in poor nations) partake in today is not something that has always been around. It has been largely expanded in the twentieth century. Even in the United States, England and other European nations around the seventeenth, eighteenth and nineteenth century, consumption by most was based on necessities. Saving and being frugal was the norm for most, and spending on "luxuries" was typically frowned upon and seen as wasteful. Of course, the wealthy elite of the time would spend heavily and extravagantly, as they had done for centuries.

On the one hand, religions and other belief systems that promoted limited consumption were supported by the wealthy elite to help sustain disparities and maintain control over the majority of people. (In many cases, those aspects of certain religions that were useful for the wealthy were promoted over other aspects.) For example, J.W. Smith in his book, Economic Democracy; Political Struggle of the 21st Century, describes in detail how Christianity was used in Europe in the Middle Ages for such purposes.

Yet, at the same time, other religions and belief systems that also promoted more limited, but careful consumption for all, also sprung up in partial protest at disparities and so forth, such as Jainism and Buddhism in Asia (as did Christianity and most other major religions and belief systems). So restricting consumption was a political tool for dominance in the past, while the problems of excessive or conspicuous consumption were nonetheless recognized centuries back.

Another aspect of limited consumption in the past was due to the scarcity of resources. Not in the sense that there were necessarily less resources in the past than today, but more that the ability to extract and use them made them more limited. With new technological advancements and so on, additional resources became accessible that were not available before.

Accompanying this though, was the want to dominate and control both the access to these resources and the means to produce from these. As city-states evolved and further became nation states, such domination was used to protect the lifestyle and dominance of the wealthy. While all would like to be able to afford a more comfortable living standard, in the past, there was harsh control over oppressed and poor people, so the wealthy could lavishly consume in comparison. Benefit from expansion of new trade routes, military conquest, technological developments, etc. would lead to further suppression of the ruled subjects to keep and attain more wealth and power. Those patterns also continue today, as we shall see later.

J.W. Smith draws a parallel of the political ramifications of concentrated consumption in the past, plus some of its purpose, with some of todays:

"Though most societies were efficient for the time in which they were formed, powerful nations disintegrated when too large a share of their labour was diverted to unnecessary tasks. Some societies, such as the European aristocratic structures, needlessly expended labour, resources, and capital to support militaristic elite bent on plundering neighbours and their own workers. Each of these societies became locked into a wasteful system of production and distribution. The United States is also locked into a wasteful expenditure of labour, resources, and industry." -- J.W. Smith, The World's Wasted Wealth 2, (Institute for Economic Democracy, 1994), p. 4.

As McKendrick, Brewer and Plumb point out in their book, The Birth of a Consumer Society (Hutchinson, 1983), while the want to consume was nothing new, "It was the ability to do so, which was new" in eighteenth century England and other places. (See p.2, emphasis is original.) As they go on to point out further:

"The ferocious pursuit of getting and spending has a long history. The feverish pursuit of fashion is just as ancient. ... But in the past the acquisitive part of society was a tiny one. Its indomitable pursuit of possessions satisfied more than personal greed and personal whim [and extravagances] ... It served important social and political functions too [such as the ability to] mark the divinity of a king, ... underline the exclusive status of the nobility, or the professional status of lawyers, doctors, and the educated elite. To preserve those distinctions sumptuary laws might be required to reinforce the effects of poverty, to buttress the conservative effects of custom, to insist on the unavailability of a desired cloth, to prevent commercial cunning from bringing it within the reach of those who aspired to wear it." (Emphasis added) -- Neil McKendrik, John Brewer, J.H. Plumb, The Birth of a Consumer Society, (Hutchinson, 1983), p.2

In the above quote, note is taken (by emphasis) on how the poor were denied the wealth of the rich of that time. We can draw parallels today that while those oppressed and subjugated classes within the rich nations managed to attain some additional (but not all) rights and privileges (which included the ability to consume more), the same denial to the poor has continued through to today in the form of the so-called Third World. The structural adjustment policies and other economic systems as described on this web site, show how the majority of the world have been kept impoverished so that the "First World" has been able to continue it's lifestyle, which today is marked by high consumption.

Hence, we see that

1.The want to consume is nothing new. It is has been around for millennia.
People need to consume resources to survive.

2.However, consumption has evolved as people have ingeniously found ways to help make their lives simpler and/or to use their resources more efficiently.

3.With this though, as power structures have developed and played themselves out, the want to control such means has also developed.

5.Hence, the consumption patterns have evolved over time based on the influence of those who can control it. In addition, as J.W. Smith has hinted in the quote above, there is tremendous waste within this system, to maintain such control and such disparities. These issues are still present today, but of course harder to see because we live within it (this issue of waste will be discussed in more detail later as well).

"Supply-side" economics helped create mass consumerism
The enormous wealth coming from the colonized countries contributed immensely to an industrial revolution in England and other parts of Europe. With this and the growing merchant class, traditional forms of labour looked to be almost irreversibly changing. As summarized by Richard Robbins, Professor of Anthropology at State University New York at Plattsburgh in talking about the era of the industrialist and some of the impacts, the changing meaning of wealth, production and the wealth-producing process affected much of society:

"Wealth or money must be able to purchase labour power. But as long as people have access to the means of production -- land, raw materials, tools (e.g. weaving looms, mills) -- there is no reason for them to sell their labour. They can still sell the product of their labour. For the capitalistic mode of production to exist, the tie between producers and the means of production must be cut; peasants must lose control of their land, artisans control of their tools. These people once denied access to the means of production must negotiate with those who control the means of production for permission to use the land and tools and receive a wage in return. Those who control the means of production also control the goods that are produced, and so those who labour to produce them must buy them back from those with the means of production. Thus the severing of the persons from the means of production turns them not only into labourers, but into consumers of the product of their labour as well." -- Richard Robbins, Global Problems and the Culture of Capitalism, (Allyn and Bacon, 1999), pp. 88 - 89

(Note that while the above describes the changes during the industrial revolution, one can also say that today with globalization, the same should occur around the world and that all should be able to afford and consume more of the world's products. However, unequal pay combined with unequal trade between unequal regions leads to a massive imbalance, whereby the majority of the world's poor cannot afford the types of products typically made, and end up servicing the consumption of the wealthier. This is a large topic in and of itself, but for more, you can see this web site's section on structural adjustment, also mentioned above.)

While the above quote by McKendrick et al. pointed out that lavish consumption was concentrated in the domain of the wealthy elite, the "crisis" of over production in the nineteenth century created a platform from which consumption could grow and spread to an enormous number of people to help create mass consumerism. As Robbins describes:

"The consumer revolution of the late nineteenth and early twentieth centuries was caused in large part by a crisis in production; new technologies had resulted in production of more goods, but there were not enough people to buy them. Since production is such an essential part of the culture of capitalism, society quickly adapted to the crisis by convincing people to buy things, by altering basic institutions and even generating a new ideology of pleasure. The economic crisis of the late nineteenth century was solved, but at considerable expense to the environment in the additional waste that was created and resources that were consumed." -- Richard Robbins, Global Problems and the Culture of Capitalism, (Allyn and Bacon, 1999), p. 210

Therefore, from a crisis of overproduction, many large challenges had to be overcome to encourage more people to consume. (Note just one parallel with today -- as President George Bush has come into power in the United States, and as the problem of overproduction and decreasing demands hits home as well, his policies, especially seen in his energy policies, are about trying to increase consumption.) As McKendrick et al continued from the above:

"The barriers to a consumer society were therefore numerous and effective. To overcome them required changes in attitude and thought, changes in prosperity and standards of living, changes in commercial technique and promotional skills, sometimes changes even in the law itself. Above all it required the commercialization of society." -- Neil McKendrik, John Brewer, J.H. Plumb, The Birth of a Consumer Society, (Hutchinson, 1983), p.2

McKendrick et al continue to also point out that these changes were more than just processes in the world of advertising and selling, fashion and credit; it importantly touched things like:

Politics;
Commercialization of leisure;
of childhood;
Invention and creation
Economic, intellectual and social adjustments

A change of culture was needed to increase consumption

In his book, Global Problems and the Culture of Capitalism (Allyn and Bacon, 1999), Richard Robins describes that for the rise of consumerism in the United States to occur, buying habits had to be transformed and luxuries had to be made into necessities. He describes numerous ways in which this was accomplished (pp. 14 - 24):

A major transformation in the meaning of goods and how they were presented and displayed. This included:

The evolution of the department store into a place to display goods as objects in themselves. Orchestras, piano players, flower arrangements, and so on would be used to "present goods in a way that inspired people to buy them. The department store became a cultural primer telling people how they should dress, furnish their homes, and spend their leisure time." (p. 15, emphasis added)

Advertising was another "revolutionary development" to influence the creation of the consumer. "The goal of the advertisers was to aggressively shape consumer desires and create value in commodities by imbuing them with the power to transform the consumer into a more desirable person. ... In 1880, only $30 million was invested in advertising in the United States; by 1910, new businesses, such as oil, food, electricity and rubber, were spending $600 million, or 4 percent of the national income, on advertising. Today that figure has climbed to well over $120 billion in the United States and to over $250 billion worldwide." -- Richard Robbins, Global Problems and the Culture of Capitalism, (Allyn and Bacon, 1999), pp. 15 - 16

The idea of fashion would help in the "stirring up of anxieties and restlessness over the possession of things that were not "new" or "up-to-date". Fashion pressured people to buy not out of need but for style -- from a desire to conform to what others defined as "fashionable."" (p. 16)

Creation of, as well as improvement of service also helped. Customers were to be treated like guests. The adage of "the customer is always right" rings true here.

A transformation of the major institutions of American society, each redefining its function to include the promotion of consumption.

Robbins notes that, "Educational and cultural institutions, governmental agencies, financial institutions, and even the family itself changed their meaning and function to promote the consumption of commodities." (p. 17)

Education for example would be expanded from production/manufacturing knowledge to include things like accounting, marketing, sales, etc. Business schools popped up in many places. Robbins also describes the setting up of the U.S. Commerce Department in 1921, under Herbert Hoover, as a clear example of the increasing role of the federal government in the promotion of consumption. As he points out: "Hoover clearly intended the Department of Commerce to serve as the hand-maiden of American business, and its main goal was to help encourage the consumption of commodities. For example, between 1926 and 1928 the BFDC [Bureau of Foreign and Domestic Commerce], under Hoover's direction, initiated the Census of Distribution (or "Census of Consumption," as it was sometimes called) to be carried out every ten years. (It was unique at that time; Britain and other countries did not initiate government-sponsored consumer research until the 1950s). It detailed where the consumers were and what quantities of goods they would consume; it pointed out areas where goods were "overdeveloped" and which goods were best carried by which stores. The Commerce Department endorsed retail and cooperative advertising and advised merchants on service devices, fashion, style, and display methods of all kinds. The agency advised retail establishments on the best ways to deliver goods to consumers, redevelop streets, build parking lots and underground transportation systems to attract consumers, use collared lights, and display merchandise in "tempting ways". The goal was to break down "all barriers between consumers and commodities" (Leach 1993:366)" -- Richard Robbins, Global Problems and the Culture of Capitalism, (Allyn and Bacon, 1999), pp.18-19

Robbins further shows how individual home ownership was also emphasized. This increases the amount of resources that are used, as well as increasing sales for related industries. Robbins is worth quoting again here: "Hoover also emphasized individual home ownership. In his memoirs he wrote that "a primary right of every American family is the right to build a new house of its heart's desire at least once. Moreover, there is the instinct to own one's own house with one's own arrangement of gadgets, rooms, and surroundings" (cited Nash 1998:7). The Commerce Department flooded the country with public relations materials on "home buying" ideas, producing a leaflet entitled Own Your Own Home, along with a film, Home sweet home. They advocated single-dwelling homes over multiunit dwellings and suburban over urban housing. The leaflet recommended a separate bedroom for each child, saying it was "undesirable for two children to occupy the same bed -- whatever their age." Regardless of the reasons for these recommendations, the materials produced by the Commerce Department all promoted maximum consumption. Thus the government responded, as much did educational institutions, to the need to promote the consumption of commodities." (Emphasis Added) -- Richard Robbins, Global Problems and the Culture of Capitalism, (Allyn and Bacon, 1999), p.19

Workers had to be given buying power in order to be able to create a consumer economy. This was accomplished via things like

higher wages

expanding consumer credit. (The effect of this credit was to increase consumer debt, while creating mass markets for consumer goods that stimulated economic growth. Today, the issue of rising consumer debt in America is constant news on the mainstream media, yet the habit of saving is rarely promoted!)

There had to be a "change in spiritual and intellectual values from an emphasis on such values as thrift, modesty, and moderation, toward a value system that encouraged spending and ostentatious display." (p.21)

This was seen especially from 1880 to 1930.

Robbins further details how religious movements, which became known as "mind cure religions", became (quoting research from William Leach) "wish-oriented, optimistic, sunny, the epitome of cheer and self-confidence, and completely lacking in anything resembling a tragic view of life." "These movements held that salvation would occur in this life and not in the afterlife. Mind cure dismissed the ideas of sin and guilt. God became a divine force, a healing power. Proponents argued that Americans should banish ideas of duty and self-denial. ... These new religions made fashionable the idea that in the world of goods men and women could find paradise free from pain and suffering; they could find, as one historian of religion put it, the "good" through "goods."" -- Richard Robbins, Global Problems and the Culture of Capitalism, (Allyn and Bacon, 1999), p.22

That is, a more materialistic view on things like life and relationships with others, etc. would tend to be encouraged or promoted.

While the above from Robbins is based on looking at the U.S., he points out that this also happened in Europe, such as in France, Britain and Germany, but "it happened with the most intensity and rapidity in America." (p.22).

Britain's BBC aired a documentary called "The Century of the Self" (March 31, 2002). It explored how psychology contributed to increasing individualism in post World War II America. From its social and political activism beginnings it was ultimately turned on itself and used and understood by corporate America to create more diverse products for consumers. But, as well as meeting consumer desires, there was a more fundamental political and economic reason for promoting individualism. The documentary described the social, economic and political aspects behind this:

In the 1960s especially, there was a growing student-based and civil right movement, and amongst many other things there was activism (some of it quite militant) and criticism about corporations and their exploitive drive for profits and the already increasing mass consumerism that was creating conformity. (The Vietnam protests are perhaps the most well-discussed aspects of this movement.)

With increasing activism, this had a possibility of threatening political stability for power holders, and economic stability for corporate America, as students and the young are the consumers of the future. For such large numbers to be rebelling was already impacting some industries.

Corporate America as well as the political elite had to naturally try to regain some of the desired conformity which would help a stable and predictable political economy. Methods of psychological research were deployed by corporate America and various research institutions to understand and categorize people into predictable behaviours and be able to get people to express their individuality by purchasing products they would have produced for meeting those needs.

Economically, this contributed to a rise in the American economy which up to that point was facing a lot of unemployment and slow down (though there would still be booms and busts to follow).

Politically the impact could perhaps be seen as more significant:

This support for individualism was seen as very valuable because it was a form of subtly imposed social control, whereby it would individualize people in a way that would remove or loosen the strong political and social activism, as people would turn inwards to themselves only.

A group of people who were once concerned about social issues were largely transformed into exploring and fulfilling their individual desires through the purchase of material goods.

At a time when left wing political parties would be seen as championing social causes, candidates like Ronald Reagan, and Margaret Thatcher in Britain, would appeal to the expression of individualism, to gain appeal, support and power.

The same documentary continued April 7, 2002, to also detail how this affected political parties in USA and UK. Thatcher and Reagan had started off a new drive towards increased individualism and increasing consumerism and getting people to express their own personal needs, without requiring or demanding any needs for society. Subsequent parties and their leaders such as Bill Clinton and Tony Blair also found that they too had to change their party's ways and ideals to meet the desires of consumers. Democratic participation had become more about expressing needs and wants.

The documentary pointed out that this shaping of people's choices and opinions came from the pressures and skills of big business, to which now even governments had to succumb to gain power. In this way, the documentary had pointed out an irony in that the drive for individualism had made people feel unique and not driven by big government or big business in their lives and choices, and yet it was big business that had been able to influence deeply both individuals and governments; people's desires were being listened to, but people's democratic rights and broader powers were being undermined; a process that has been attempted for centuries by the elites of the time.

With these types of transformations, the consumer society has evolved in such a way, that consumption and consumerism (for good and bad) is identified as being at the core of a modern culture and society.

Consumerism drives most aspects of our lives today

The BBC also aired a documentary called "Shopology" (September 2nd and 9th, 2001) where psychologists looked into the psychology of shopping and consumerism in places like Britain, USA and Japan and asked if it was healthy for consumers. Of the many points they raised, they pointed out that:

Consumption now helps to define and answer who we are

Social definition revolves around consumption (which is heavily commercialized)

That we essentially "buy" a lifestyle

Brands help turn perceptions into reality, thus encouraging purchases based on fashion and peer/social pressures to fit in.

Consumerism can increase stress for various reasons

To deal with social and consumerism pressures and their effects, people may on occasion resort to what psychologist term as "compensatory consumption" -- that is, consuming even more to feel better (similar to how one might feel tempted to take alcohol to relieve stress). This is ironic because this additional consumption often stems from the culture of consumerism itself.

Rising consumer debt puts pressure on families

Malls are carefully designed to create appropriate moods to indirectly encourage buying (this is a similar parallel to how department stores evolved, as described above, except that from a department store, it now includes entire malls.)

The BBC focused on the impact on consumers in wealthy countries, which is important to consider. Additionally however, consumerism by the wealthy is also at the expense of the poor around the world (the majority of people) which has enormous ramifications. This will be introduced in the rest of this web site's section on consumption.

"Thus by the 1930s, the consumer was well entrenched in the United States, complete with a spiritual framework and an intellectual rationalization that glorified the continued consumption of commodities as personally fulfilling and economically desirable, and a moral imperative that would end poverty and injustice. ... Since that time the institutions of our society, particularly those of corporate America, have become increasingly more adept at ... hiding the negative consequences of our patterns of behaviour, consequences such as labour exploitation, environmental damage, poverty and growing inequalities in the distribution of wealth." -- Richard Robbins, Global Problem and the Culture of Capitalism, (Allyn and Bacon, 1999), p.22

Hence, consumerism has come a long way, and involves a lot of money too:

"World consumption has expanded at an unprecedented pace over the 20th century, with private and public consumption expenditures reaching $24 trillion in 1998, twice the level of 1975 and six times that of 1950. In 1900 real consumption expenditure was barely $1.5 trillion." -- Human Development Report 1998 Overview, United Nations Development Programme (UNDP)

A vivid example of this increasing consumption and its associated impacts is the use and promotion of consumption by children, which we look at next.

Next Page-Children as Consumers

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