Consumerism in the US

History of Consumerism

• Central Paradox:• How did the Puritan tradition of thrift and

asceticism turn into a culture of spending and materialism?

• It happened in three waves

The First Wave of Consumerism (1910s-1920s)

• Mass production– Consumer durables appear in the household

• Electricity• Invented: electric washing machine and vacuum cleaner(1903), Ford’s

Model T (1908), refrigerator (1913 see above)• Mass Marketing

– The department store (Wannamaker, Marshall Fields, Woolworth, Sears etc.)

• Creation of consumer credit– Usury, pawnshops and borax houses (stores selling cheap goods on

installment)– A.P. Giannini (Bank of Italy (1904) Bank of America)

• 1906 San Francisco earthquake– Charga-plate 1920s

Great Depression 1929-1941

The Second Wave of Consumerism1945-1975

• Post-WWII boom – Growing productivity, rising incomes

• 1960s Women enter the labor force

• Competitive consumption– Income and desires are still connected –

• Keeping up with the Joneses (your neighbors)

• Consumer credit– Diners Club Card (1950), Bank of America Card (1958, 1976 renamed

Visa)

Home ownership grew

The housing bubble

Third Wave of Consumerismmid 1970s -- 2008

• No increase in leisure • Increasing Inequalities

– Conspicuous spending at the top

• Mass Media– Growing expectations

• Advertisement, television shows

• Credit– New tools for spending

• New forms of consumer credit, over-indebtedness

• Disconnect between incomes and desires– The “aspiration gap” -- keeping up with the Gateses

Consumer debt on the rise

Both mortgage and consumer debt rose substantially in the last decade

People have saved less and less

Growing income did not result in more happiness

• Income and Happiness in the US from 1945-2000 (Layard 2005).

1A. Baby Boom1A. Baby BoomIt seems to me that every other It seems to me that every other young housewife I see is pregnant.young housewife I see is pregnant.

-- British visitor to America, -- British visitor to America, 19581958

1957 1957 1 baby born every 7 1 baby born every 7 secondsseconds

1B. Baby Boom1B. Baby Boom

Dr. Benjamin Dr. Benjamin SpockSpock

and the Anderson and the Anderson QuintupletsQuintuplets

2A. Suburban Living2A. Suburban Living

$7,990 or $60/month with no down $7,990 or $60/month with no down payment.payment.

Levittown, L. I.: Levittown, L. I.: “The American “The American Dream”Dream”

1949 1949 William LevittWilliam Levitt produced produced 150 houses per week. 150 houses per week.

2A. Suburban Living:The New “American Dream”

2A. Suburban Living:The New “American Dream”

k 1 story high1 story high

k 12’x19’ living 12’x19’ living roomroom

k 2 bedrooms2 bedrooms

k tiled bathroomtiled bathroom

k garagegarage

k small backyardsmall backyard

k front lawnfront lawn

By 1960 By 1960 1/3 of the U. S. population 1/3 of the U. S. population in in the suburbs. the suburbs.

2B. Suburban Living2B. Suburban Living

SHIFTS IN POPULATION SHIFTS IN POPULATION DISTRIBUTION, DISTRIBUTION,

1940-19701940-1970

19401940 19501950 19601960 19701970Central CitiesCentral Cities 31.6% 32.3% 31.6% 32.3% 32.6% 32.0% 32.6% 32.0%SuburbsSuburbs 19.5% 23.8% 19.5% 23.8% 30.7% 30.7% 41.6%41.6%Rural Areas/Rural Areas/ 48.9% 43.9% 48.9% 43.9% 36.7% 26.4% 36.7% 26.4%Small TownsSmall Towns

U. S. Bureau of the Census.U. S. Bureau of the Census.

3a. Consumerism3a. Consumerism

1950 1950 Introduction of the Diner’s Introduction of the Diner’s CardCard

All babies were potential consumers All babies were potential consumers who spearheaded a brand-new market who spearheaded a brand-new market for food, clothing, and shelter.for food, clothing, and shelter. -- Life -- Life Magazine (May, 1958) Magazine (May, 1958)

4A. A Changing Workplace

4A. A Changing Workplace Automation:

1947-1957 factory workers decreased by 4.3%, eliminating 1.5 million blue-collar jobs.

By 1956 more white-collar than blue-collar

jobs in the U. S.

Computers Mark I (1944). First IBM mainframe computer (1951).Corporate Consolidation:

By 1960 600 corporations (1/2% of all U. S. companies) accounted for 53% of total corporate income.

WHY?? Cold War military buildup.

5A. The Culture of the Car

5A. The Culture of the Car Car registrations: 1945 Car registrations: 1945

25,000,00025,000,000 1960 1960 60,000,000 60,000,000

2-family cars doubles from 1951-19582-family cars doubles from 1951-1958

1956 1956 Interstate Highway ActInterstate Highway Act largest largest public works project in American public works project in American history! history!

Å Cost $32 billion.Cost $32 billion.

Å 41,000 miles of new highways 41,000 miles of new highways built.built.

1959 Chevy 1959 Chevy CorvetteCorvette

1958 Pink 1958 Pink CadillacCadillac

5B. The Culture of the Car

5B. The Culture of the Car

First McDonald’s First McDonald’s (1955)(1955)

America became a more America became a more homogeneous nation because homogeneous nation because of the automobile.of the automobile.

Drive-In Drive-In MoviesMovies

Howard Howard Johnson’sJohnson’s

6A. Television6A. Television 1946 1946 7,000 TV sets in the U. S. 7,000 TV sets in the U. S.

1950 1950 50,000,000 TV sets in the U. 50,000,000 TV sets in the U. S.S.

Mass Audience Mass Audience TV celebrated TV celebrated traditionaltraditional

American values. American values.

Television is a vast wasteland.Television is a vast wasteland. Newton Minnow, Chairman of the Newton Minnow, Chairman of the Federal Communications Commission, Federal Communications Commission, 19611961

Truth, Justice, and the American way!Truth, Justice, and the American way!

The Rise of Television

•~1/household by 60’•Nat’l income 2x after WWII•60% middle class in 50s w/ 75% owning car & washing machine•Work provided by defense industry, home construction, & white collar service econ.

7A. Teen Culture

7A. Teen CultureIn the 1950s In the 1950s the word the word “teenager”“teenager” entered entered

the American language. the American language.

By 1956 By 1956 13 mil. teens with $7 bil. to spend 13 mil. teens with $7 bil. to spend a year. a year.

1951 1951 “race music”“race music” “ROCK ‘N “ROCK ‘N ROLL”ROLL”

Elvis PresleyElvis Presley “The King” “The King”

7D. Teen Culture

7D. Teen Culture

Behavioral Rules of the Behavioral Rules of the 1950s:1950s:U Obey Authority.Obey Authority.

U Control Your Emotions.Control Your Emotions.

U Don’t Make Waves Don’t Make Waves Fit Fit in in with the Group.with the Group.

U Don’t Even Think About Don’t Even Think About Sex!!!Sex!!!

8A. Religious Revival

8A. Religious Revival Today in the U. S., the Christian faith is back in Today in the U. S., the Christian faith is back in

the center of things.the center of things. -- -- TimeTime magazine, 1954 magazine, 1954

Church membershipChurch membership: : 1940 1940 64,000,000 64,000,000 1960 1960 114,000,000 114,000,000

Television PreachersTelevision Preachers: :

1. Catholic 1. Catholic Bishop Fulton J. SheenBishop Fulton J. Sheen “Life is “Life is Worth Living” Worth Living”

2. Methodist Minister 2. Methodist Minister Norman Vincent PealeNorman Vincent Peale The Power of Positive ThinkingThe Power of Positive Thinking

3. 3. Reverend Billy GrahamReverend Billy Graham ecumenical ecumenical message;message; warned against the evils of Communism. warned against the evils of Communism.

10A. Progress Through Science10A. Progress Through Science

1951 -- 1951 -- First IBM Mainframe First IBM Mainframe ComputerComputer

1952 -- 1952 -- Hydrogen BombHydrogen Bomb Test Test

1953 -- 1953 -- DNADNA Structure Discovered Structure Discovered

1954 -- 1954 -- Salk VaccineSalk Vaccine Tested for Tested for PolioPolio

1957 -- First Commercial 1957 -- First Commercial U. S. U. S. NuclearNuclear Power Plant Power Plant

1958 -- 1958 -- NASANASA Created Created

1959 -- Press Conference of the 1959 -- Press Conference of the First 7First 7 American Astronauts American Astronauts