Curse of consumerism

Consumer spending, according to Keynesian economists, fuels economic growth, and as such, it needs to be boosted through fiscal and monetary measures. Domestic consumption is, of course, a blessing for any economy, for it contributes to aggregate demand and ensures a robust growth in GDP. But while we celebrate the boom in the markets, the phenomena of 'consumerism' or over consumption often goes unnoticed. Consumerism is the preoccupation of society, typical of a capitalist economy, to engage in excessive materialism that revolves around reflexive, wasteful, or conspicuous consumption with 'wants' overriding the 'needs'. It is associated with a value system whereby social status is perceived by affluence and, also a belief that possessions can provide happiness. Such overconsumption leaves disastrous consequences on the economy, the society and the environment, especially in developing countries with growing populations and poor human development indicators.

Initially a characteristic of the Western capitalist economies during the post-WWII economic boom, consumerism gradually laid inroads into third-world countries like India in the 1990s when the gates were thrown open by liberalisation. The advent of e-commerce has further fuelled the fire. According to Statista, in 2022, the online sales exceeded USD 5.7 trillion globally. A study by Salesforce in 2018 said that when 75 per cent consumers search for new brands of products online, 69 per cent of consumers feel that it’s important to see new merchandise each time they visit a store.

According to Kacen, J.J., & Lee, J. A. (Cultural influences on consumer satisfaction with impulse and planned purchase decisions. J Bus Res (2007) is a characteristic of consumerist culture where buyers are unaware of the consequence of their purchase. Sociologists, ("The culture industry: Selected essays on mass culture." Edited by Theodor W. Adorno and Jay M. Bernstein Routledge, 2020) say that consumerism began to define people by what they own but they are manipulated by mass culture popularised by advertisements.

Consumerism sets in as demand is induced in favour of specific products through strategic business practices aimed at profiteering. 'Planned obsolescence' is one of the kinds through which a product is improvised periodically, making the earlier version obsolete. Through advertising tactics, the consumers are lured into buying goods motivated by perceived social status or imitation of lifestyles. Smartphones, flashy cars, motorbikes, TVs, audio appliances, and various other electronic goods are some examples. Businesses treat consumers as cash cows for marketing varieties of goods of similar utility. For example, in the 90's, while there were less than a half a dozen brands in chocolates, soaps, shoes, cloths, kitchenware, refrigerators, air conditioners, cars, cycles, motorbikes etc., today we have dozens of them, each competing with the other. An average consumer is overwhelmed by the variety and, under the influence of impressive Ads, attractive offers like 'buy one get one free’, online discounts, grand sales and personal messages, impetuously purchases more and more goods, irrespective of affordability, utility or usability. People even buy expensive luxury products when financed by Banks on EMI.

The ills of consumerism are manifold. High rates of consumption means depletion of limited resources like water, land, power, fuel etc. in producing more goods and services. Secondly, consumerism creates a materialistic society to the detriment of traditional modes of production and to the livelihoods of people. Cottage industries and handlooms are already feeling the heat. Thirdly, in addition to accentuating the already existing socioeconomic inequalities in society, consumerism can push the people of low- and middle-income groups into indebtedness while compromising on health and educational requirements of households. Fourthly, the manufacturers must realise that globalisation and consumerism together can lead to Schumpeter's 'Destructive Creation' sooner or later, offsetting the gains from commerce in the industrial economies. Fifthly, over production has issues of noncompliance of labour laws, including payment of low wages and long hours of work. Finally, and most importantly, consumerism is one of the prominent factors responsible for climate change, since excess production causes more chemical waste, more greenhouse gasses, and depletion of natural resources. However, surprisingly, it has never been on agenda in any of the Climate Talks till date.

It is reported (www.theworldcounts.com) that the consumer class will grow from 3.5 billion in 2017 to 5.6 billion by 2030 and most new consumers will be from Asia, with India as the main driver of growth. The overuse of natural resources is so rampant that if everyone lives like an American consumer, it would need Earth-like 5.2 planets to support life, and if it’s like the Japanese or Europeans, it would require three planets. 'People and the Planet’, a study way back in 2012 by the Royal Society (UK), warned that as the world population will reach nine billion by 2050, two issues, namely, population and consumption need to be the topmost political and economic agenda.

Consumerism being a global phenomenon, it needs both local and global solutions. UN Sustainable Development Goal 12 calls for sustainable consumption and production patterns in the interest of livelihoods of current and future generations. Nations, as a part of protocols on climate change, need to forge necessary economic cooperation against consumerism. A good start can be made by concluding agreements against 'dumping' activities under the supervision of WTO. Movements like anti-consumerism, freeganism, green economics, degrowth, frugality, simple living, minimalism etc., popular in Europe, need to be encouraged, as they work for a steady-state economy that ensures optimal consumption in terms of health and environment.

Countries like India, which are fast transforming from being need-based to want-based markets, thanks to robust growth rates, must decelerate current consumption patterns through policy initiatives. Reasonable restrictions on excessive production and unethical business practices are necessary. Hiking tax rates on luxury goods and services, inter alia, can also be a deterrent against consumerism. Currently, the Consumer Protection Act, 2019, only protects the interests of consumers but not the consumers against consumerism. Regulatory agencies like Indian Standard Institute (ISI), Bureau of Indian Standards (BIS), and Food Safety and Standards Authority of India (FSSAI) can play a vital role in keeping the 'variety' of dubious consumer goods from swarming the markets. Growth is not an end in itself. It’s a vehicle to achieve the ultimate goals — sustainable development, reduction of inequalities and eradication of poverty. Buddhist economics has greater relevance today, as it approaches production and consumption by integrating three intertwined aspects of human existence: the individual, society, and the environment.

The writer is a former Addl. Chief Secretary of Chhattisgarh. Views expressed are personal