THE MYTH OF MAINTAINING ECONOMIC GROWTH AS FUNDAMENTAL TO CONSUMERIST SOCIETIES By Leanne Whibley

OUTLINE Consumerist Society v Society of Consumers – is it all bad? Consumerist Society v Society of Consumers – is it all bad? Needs v Wants Needs v Wants Economic Growth – is continual growth necessary? Economic Growth – is continual growth necessary? Economic Growth – the benefits and the negatives Economic Growth – the benefits and the negatives Some Statistics Some Statistics Economic Growth and a Consumerist Society Economic Growth and a Consumerist Society The Human Issues The Human Issues Sustainable Living Sustainable Living Conclusion Conclusion

CONSUMERIST SOCIETY (CONSUMERISM) (A Definition) Consumerism is the purchase and use of goods to satisfy one’s needs and wants Consumerism is the purchase and use of goods to satisfy one’s needs and wants Consumerism can also be a belief that personal well-being (happiness) depends on the level of quantity and/or quality of one’s personal consumption of goods Consumerism can also be a belief that personal well-being (happiness) depends on the level of quantity and/or quality of one’s personal consumption of goods

NEEDS V WANTS This is a basic economic premise This is a basic economic premise Needs are the basics necessary for life – food, water, shelter, health, education Needs are the basics necessary for life – food, water, shelter, health, education Wants are those things we strive for which we believe will make our lives better Wants are those things we strive for which we believe will make our lives better What we need is not necessarily what we want and vice versa What we need is not necessarily what we want and vice versa

CONSUMERIST SOCIETY Existed as far back as Ancient Rome and Egypt Existed as far back as Ancient Rome and Egypt Consumers acquire goods they do not necessarily need but want Consumers acquire goods they do not necessarily need but want Shopping is all encompassing – retail therapy Shopping is all encompassing – retail therapy Identity becomes the exhibition of goods bought Identity becomes the exhibition of goods bought Institutions encourage and serve consumerism Institutions encourage and serve consumerism

CONSUMERIST SOCIETY (Continued) Pursuit of “the good life” Pursuit of “the good life” Role of media – audio, visual, written Role of media – audio, visual, written Increasing use of debt Increasing use of debt Throw-away society Throw-away society Has become a dominant social force Has become a dominant social force

SOME STATISTICS (RBA – 4/3/15) Average Household Debt – over 150% of household disposable income Average Household Debt – over 150% of household disposable income Average interest paid on debt – 9% Average interest paid on debt – 9% Net worth of a household – 600% of household disposable income Net worth of a household – 600% of household disposable income

ROLE OF BUSINESS Create a welcoming environment Create a welcoming environment Super, hyper markets – bigger and better Super, hyper markets – bigger and better Make it attractive so people want to be there Make it attractive so people want to be there Advertise Advertise Use of Psychology Use of Psychology

A CONSUMERIST SOCIETY v A SOCIETY OF CONSUMERS (It’s all in a name) A Society must consume to survive A Society must consume to survive A Society must satisfy its biological needs (thirst, hunger, shelter, clothing )to achieve a level of development A Society must satisfy its biological needs (thirst, hunger, shelter, clothing )to achieve a level of development Consuming is not always bad Consuming is not always bad Economies are reliant on consumption Economies are reliant on consumption Creates employment Creates employment It is the level of consumption that is the issue It is the level of consumption that is the issue

ECONOMIC GROWTH (A Definition) The persistent increase in the market value of goods and services produced by an economy over a measured period of time The persistent increase in the market value of goods and services produced by an economy over a measured period of time It is measured as Gross Domestic Product (GDP) or Gross National Product (GNP) It is measured as Gross Domestic Product (GDP) or Gross National Product (GNP)

MORE STATISTICS (RBA 4/3/15) GDP Growth of Australian Economy (2014) – just under 2.5% GDP Growth of Australian Economy (2014) – just under 2.5% GDP Growth at end of 2013 – 3.5% GDP Growth at end of 2013 – 3.5% Retail sales (by volume) increased to end of 2014 Retail sales (by volume) increased to end of 2014 Retail sales (by value) decreased over same period. Retail sales (by value) decreased over same period. Buying more, costing less Buying more, costing less

ECONOMIC GROWTH (The Benefits) Improvements in Technology Improvements in Technology Population Increase Population Increase Low Unemployment Low Unemployment Alleviate Poverty Alleviate Poverty Government Fiscal Policy Government Fiscal Policy

ECONOMIC GROWTH (The Negatives) Overuse of Finite Resources – resource depletion Overuse of Finite Resources – resource depletion Impact on Environment – pollution, Greenhouse gases, Global Warming Impact on Environment – pollution, Greenhouse gases, Global Warming Uneven Distribution of Wealth – rich get richer Uneven Distribution of Wealth – rich get richer

ECONOMIC GROWTH AND A CONSUMERIST SOCIETY Consumers are not reliant on a growing economy to feed consumption Consumers are not reliant on a growing economy to feed consumption Most do not consider a growing economy Most do not consider a growing economy People believe in affluence from media People believe in affluence from media Availability of credit an issue – bad debt Availability of credit an issue – bad debt No vision of possible downturn in future No vision of possible downturn in future

ECONOMIC GROWTH AND A CONSUMERIST SOCIETY Economy does not need consumerism to grow Economy does not need consumerism to grow External influences – export markets External influences – export markets

HUMAN ISSUES Human nature is to strive to be better, to have better Human nature is to strive to be better, to have better Human nature is to improve – status Human nature is to improve – status Human nature is to belong – to a class, group, fashion Human nature is to belong – to a class, group, fashion Human nature is to want the best for your children Human nature is to want the best for your children

SUSTAINABLE LIVING Alternative of Unnecessary Consumerism Alternative of Unnecessary Consumerism Anti-consumerism or Simple Living Anti-consumerism or Simple Living Consume to Satisfy Internal Needs Consume to Satisfy Internal Needs Consumers make the decisions Consumers make the decisions No “bad” debt No “bad” debt

SUSTAINABLE LIVING Recognise what are false needs (wants) Recognise what are false needs (wants) Realise happiness does not come from without but is within Realise happiness does not come from without but is within Live within one’s means Live within one’s means

CONCLUSION Maintaining economic growth not always bad Maintaining economic growth not always bad Consumerist society is needed for a healthy economy Consumerist society is needed for a healthy economy Problem arises when consumption creates debt Problem arises when consumption creates debt Level of consumption is the real issue Level of consumption is the real issue Recognition of over-consumption is paramount Recognition of over-consumption is paramount Recognise happiness need not be from material goods Recognise happiness need not be from material goods Ideology of Consumption v Material and Spiritual Growth Ideology of Consumption v Material and Spiritual Growth

Bibliography Websites and information which were used in this presentation which you may find useful: Websites and information which were used in this presentation which you may find useful: Pope Francis (2013) Evangelii Gaudium (the Joy of Evangelisation). Pope Francis (2013) Evangelii Gaudium (the Joy of Evangelisation). nts/papa-francesco_esortazione-ap_ _evangelii- gaudium.html#I.%E2%80%82Some_challenges_of_today’s_world nts/papa-francesco_esortazione-ap_ _evangelii- gaudium.html#I.%E2%80%82Some_challenges_of_today’s_world RBA website for statistics RBA website for statistics Journal of Policies and Law Vol. 7, No. 1; 2014 Journal of Policies and Law Vol. 7, No. 1; Graham Rossiter, (2015) EDRE623 Lecture notes Section 1 Pedagogy of critical interpretation and evaluation of cultural meanings. Graham Rossiter, (2015) EDRE623 Lecture notes Section 1 Pedagogy of critical interpretation and evaluation of cultural meanings.