Sociology 125 Lecture 8 Thursday, February 15, 2018 Consumerism

Staten Island Ferry: free public transport

Free Public Transportation in Wisconsin: The Merrimac Ferry across the Wisconsin River Thanks to Brianna Bauer

$ Millions about 90% of total Source: There was a big shift in composition of direct and expenditures subsidies under Obama, particularly under American Recovery and Reinvestment Act, but that's now ended. Take that away and the federal subsidies are still a third of the total, not 10 percent. Also, the EIA numbers miss all the state stuff. Oil Change (a group) still calculates our annual fossil fuel subsidy (feds and states; not just the federal reported here) at $20B. That's a lot more than renewables get. And, of course, under Trump/Perry/Pruitt fossil is kind again and renewable despised. So no, I don't think there's been a sea change. Source: U.S. Energy Information Administration report, March 2015

Annual Federal Fossil Fuel Subsidies, fiscal year 2018 Estimated budget effect in $millions There was a big shift in composition of direct and expenditures subsidies under Obama, particularly under American Recovery and Reinvestment Act, but that's now ended. Take that away and the federal subsidies are still a third of the total, not 10 percent. Also, the EIA numbers miss all the state stuff. Oil Change (a group) still calculates our annual fossil fuel subsidy (feds and states; not just the federal reported here) at $20B. That's a lot more than renewables get. And, of course, under Trump/Perry/Pruitt fossil is kind again and renewable despised. So no, I don't think there's been a sea change. Source: Oil Change international report October 2017

Definitions Consumerism: The belief that personal well-being, happiness and status depend largely on the level of personal consumption, particularly the acquisition of material goods. Hyper-consumerism: the frenetic pursuit of consumer goods

Construction of small and big houses, 1973-2012

Growth in median size of new home construction in the U.S., 1973-2015

What is wrong with consumerism? There are big negative externalities from consumerism Consumerism in fact does not make most people happy There are systematic biases in the system which generate consumerism. If these system-biases were eliminated, many – maybe most – people would adopt a less consumerist life style.

What is wrong with consumerism? There are big negative externalities from consumerism Consumerism in fact does not make most people happy There are systematic biases in the system which generate consumerism. If these system-biases were eliminated, many – maybe most – people would adopt a less consumerist life style.

What is wrong with consumerism? There are big negative externalities from consumerism Consumerism in fact does not make most people happy There are systematic biases in the system which generate consumerism. If these system-biases were eliminated, many – maybe most – people would adopt a less consumerist life style.

What is wrong with consumerism? There are big negative externalities from consumerism Consumerism in fact does not make most people happy There are systematic biases in the system which generate consumerism. If these system-biases were eliminated, many – maybe most – people would adopt a less consumerist life style.

Some negative externalities of consumerism Negative externalities on the environment, especially for future generations. Large cars, SUV impose costs on others: the “arms race” in car size Urban sprawl because of low density housing, large houses, etc.

Money & Happiness

Money & Life Satisfaction How Satisfied are you with your life: 0 = worst possible life for you 10 = the best possible life for you

Market-failures in leisure System bias #1: Market-failures in leisure

Number of hours more per year on average that Americans work than people in other countries, 2012 1.1 weeks 3.4 weeks 7.8 weeks 9.8 weeks

From Juliet Schor, The Overworked American, p. 130

Average actual weeks of paid vacation for full time workers

Profit maximizing strategies and consumerist culture System bias #2: Profit maximizing strategies and consumerist culture

Annual hours of exposure to advertisements 1 week of time 2 weeks of time Annual hours of exposure to advertisements

Alternative views of the impact of advertising: Advertising mainly provides information about what is available: consumers are “free to choose;” their preferences remain autonomous (“consumer sovereignty”). Advertising creates shared desires and dissatisfactions: consumer preferences are not autonomous.

Changing reference group for consumption norms System bias #3: Changing reference group for consumption norms

System bias #4: Credit cards

Credit Cards & Consumer Debt Consumer debt grew from $898 billion in 1980 to $2.4 trillion in 2011 Average credit card balance for families with a balance grew from $3,312 in 1989 to $7,100 in 2010 (in 2013 inflation adjusted dollars) U.S. households received a total of 7 billion credit card solicitations in 2006 (just before the Great Recession), falling to 2.6 billion in 2012.

Rising inequality increases consumerism: positional goods System bias #5: Rising inequality increases consumerism: positional goods

Abandonment of public consumption by the affluent System bias #6: Abandonment of public consumption by the affluent