What Role Should Consumerism Play In Our Economy? Chapter 7

Consumerism An economic theory that links prosperity to consumer demand for goods and services, and that makes consumer behavior central to economic decision making The consumer’s desire to buy a good or service makes the decisions of the economy. In other words, $$ makes the world go round.

Focus Questions: What affects the impact of consumerism on the economies of Canada and the U.S.? Is the economy impacted by consumer choice? How does consumer behaviour affect quality of life for individuals and groups in Canada and the U.S.? What is Q.o.L? Maybe you should review…

QUALITY OF LIFE SURVEY What were your top 5 choices as being most important to you? Why? What was least important to you? Why?

Consumerism & Quality of Life So, how does Consumerism connect to Quality of Life? Based on the survey you just took, how do you think we connect the concept of Consumerism to Q.o.L?

World Consumption of Goods & Services

Inequalities in Consumption Globally, the 20% of the world’s people in the highest-income countries account for 86% of total private consumption expenditures, whereas the poorest 20% account for a minuscule 1.3%. More specifically, the richest fifth: Consume 45% of all meat and fish, the poorest fifth 5% Consume 58% of total energy, the poorest fifth less than 4% Have 74% of all telephone lines, the poorest fifth 1.5% Consume 84% of all paper, the poorest fifth 1.1% Own 87% of the world’s vehicle fleet, the poorest fifth less than 1% So why do these inequalities exist?

Let’s Talk GDP! GDP stand for Gross Domestic Product and it is the market value of ALL officially recognized goods and services produced within one country in one year. https://www.youtube.com/watch?v=rqT5I0etVKg GDP can also be measured as GNP (Gross National Product) and GDP/Capita (Gross Domestic product Per Capita)

2017 Canada:$42 000 Mexico: $10 000 US: $52 000

GDP impact on Q.o.L and Consumerism Mexico: $10 000 Canada: $42 000 US: $52 000 How might GDP affect Q.O.L? How might GDP affect consumerism? Do you think each country has different perspectives on consumerism?

Do you think a high GDP would result in a high standard of living in each of the provinces or territories? Explain.

Where CNDs spend their $$ https://www.mint.com/blog/trends/where-are-all-those-canadian-dollars-going/

Guiding Factors of Consumer Behavior What Determines What, When, Why and How Much you Consume?

What guides your behaviour as a consumer? There are 6 factors that guide your choices as a consumer: Identity Health & Safety Jobs Environment Marketing Need

FACTOR: Identity (p. 244) Who you are? What you believe in and value? Where do you live? What groups do you belong to? How do you way of see the world? Think about the clothing you are wearing today. What do your clothes say about your beliefs and values, and what you consider important to your quality of life? Think about it: Why do you buy what you do??

FACTOR: Health & Safety (p.248)

FACTOR: Health & Safety (p.248) How important is your health & safety to you? Federal law requires warnings on products such as cigarettes to discourage consumers from buying them. Despite the warnings, however, adults can still buy cigarettes. Other: Ingredient list, seat belts, trans fats Gov’t can also choose to BAN products completely.

Labels All natural?

FACTOR: Environment (p. 252) Your choices as a consumer also affect the air, water and land that you share with everybody. Factory farming Pollution Sweatshop conditions Gov’t involvement: Banning leaded gas, promoting Energy-efficient appliances Business choices: Organic materials (be careful) which steam from CONSUMER DEMAND

McDonalds As a response to consumer demand, they created these infomercials to show where their product is from. Why would they bother doing this? http://yourquestions.mcdonalds.ca/questions/17?category=Sourcing &type=video

FACTOR: Need? What do we need? Food, water, shelter. What do we believe we need? What wants become needs? Luxury goods – phones, makeup, etc. Depending on our other factors (identity, health, etc) and the GDP of where we live, we may view “needs” differently.

Needs? Worldwatch reports that worldwide annual expenditures for cosmetics total U.S. $18 billion the estimate for annual expenditures required to eliminate hunger and malnutrition is $19 billion. Expenditures on pet food in the United States and Europe total $17 billion a year; the estimated cost of immunizing every child, providing clean drinking water for all, and achieving universal literacy is $16.3 billion.

FACTOR: Jobs (p. 250) When you buy a product, you connect to a chain of people and their jobs. What is the relationship between consumer behaviour, production of Goods & Services and jobs? You also support the way that business chooses to operate with regards to jobs (safety standards, pay wage, etc.)

Here are some of the jobs connected to your pen purchases:

FACTOR: Marketing (p. 254)