CONTEMPORARY ISSUES IN LAW & SOCIETY

Week 11

The Politics of Consumption

‘We make a living by what we get, but we make a life by what we give.’ Winston Churchill

Assistant Professor Liz Spencer

• Abt 20% of the world’s population in the richest countries use 86% of the world’s resources while the poorest 20% use only 1.3%

• An average child in the US, UK & Oz sees btwn 20-40,000 commercials ea year

• Teenagers in Oz lead the world in mobile phone use• Studies show most people would rather earn $50k/yr where

the avg is $40k than earn $70K where the avg is $100k• The proportion of Australians who say they are totally

satisfied with life overall declines as income increases

• In 1958, only 4 percent of American homes had dishwashers. Now more than half do.

• Less than 1 percent had color televisions. Now 97 percent do. In addition, in the '50s there were no microwave ovens, VCRs, or personal computers.

• Today, many new homes have three-car garages of nearly 900 square feet (the same as an entire house in the 1950s).

• Americans fly 25 times as may passenger miles as they did in the 1950s.

• The number of Americans who say they are very happy peaked back in 1957.

• Seventy percent of Americans visit malls each week, more than attend churches or synagogues. On average, Americans shop six hours a week and spend only 40 minutes playing with their children.

http://www.globalrichlist.com/

Military spending

Religious perspectives• Jewish custom of child setting $ aside each week and

then go give it themselves to charity• Islam also puts an obligation upon the rich to give

charity to the poor through the mandatory ZAKAH and the optional charity to the poor Muslims that he or she knows...

• Buddhism: How does consumer culture influence the dharma? http://www.thubtenchodron.org/AudioLibrary/audio_DailyLifeDharma/BismAndConsumerism2007_1-2_33.mp3

• Christian practice of tithing

The Gospel of Luke, Ch 1211 Now whenever they bring you to the synagogues

and rulers and authorities, do not worry about how or what you should answer, or what you should say.

12 For the Holy Spirit will teach you in that very hour what you must say."

13 Then someone from the crowd said to Him, "Teacher, tell my brother to divide the inheritance with me."

The Gospel of Luke, Ch 12

14 But He said to him, "Man, who appointed Me a judge or an arbitrator over you?"

15 And He said to them, "Take heed and beware of covetousness, for one's life does not consist in the abundance of his possessions."

The Gospel of Luke, Ch 1216 Then He told a parable to them, saying: "The field of a certain

rich man produced well.17 And he reasoned within himself, saying, 'What shall I do,

because I have nowhere to gather my crops?'18 So he said, 'I will do this: I will tear down my barns and I will

build bigger ones, and there I will gather all my crops and my goods.

19 And I will say to my soul, "Soul, you have many goods laid away for many years; relax; eat, drink, and be merry." '

20 But God said to him, 'You fool! This night your soul will be required of you; then whose will those things be which you have prepared?'

The Gospel of Luke, Ch 12• 21 So is he who accumulates treasure for himself,

and is not rich toward God."• 22 Then He said to His disciples, "Therefore I say to

you, do not worry about your life, what you will eat; nor about the body, what you will wear.

• 23 Life is more than food, and the body is more than clothing.

• 24 Consider the ravens, for they neither sow nor reap, which have neither storeroom nor barn; and God feeds them. How much more are you worth than birds?

The Gospel of Luke, Ch 1229 And do not seek what you may eat or what you may drink,

and do not be anxious.30 For all these things the nations of the world seek after, but

your Father knows that you need these things.31 But seek the kingdom of God, and all these things shall be

added to you.32 Do not fear, little flock, because your Father is well pleased

to give to you the kingdom.

http://www.abc.net.au/rn/encounter/stories/2006/1667319.htm

The Ethics of Consumption by Juliet Schor

• Have Australians, like Americans, ‘been manipulated into participating in a dumbed-down, artificial consumer culture’ that yields few true human satisfactions?

• This ‘patronizing’ approach has been largely abandoned, not the focus of economists

• But there remains a need for a ‘critical politics of consumption.’

• The average American now finds it harder to achieve a satisfying standard of living than 25 years ago.

• Work requires longer hours, • jobs are less secure, and • pressures to spend more intense • Consumption-induced environmental damage

remains pervasive, and we are in the midst of widespread failures of public provision

• In response to these developments, social critics continue to focus on income …

• If we have a consumption problem, this view implicitly states, we can solve it by getting more income into more people's hands.

• Their goals are redistribution and growth.

Schor does not think the "income solution" addresses the most profound failures of the current consumption regime:

1) consuming is part of the problem;2) the system is structured such that an

adequate income is an elusive goal; and3) it is difficult to make an ethical argument

that people in the world's richest country need more.

The New Consumerism

• upscaling of lifestyle norms; • the pervasiveness of conspicuous, status

goods and of competition for acquiring them; and

• the growing disconnect between consumer desires and incomes

• "competitive consumption"

“upscale emulation”

• redefinition of reference groups: today's comparisons are less likely to take place between or among households of similar means.

• the decline of the neighborhood as a focus of comparison

• Women in the workforce• TV• Redistribution of income and wealth and

conspicuous consumption

Fournier & Guiry Study

• 35 percent of their sample aspired to reach the top 6 percent of the income distribution

• another 49 percent aspired to the next 12 percent.

• Only 15 percent reported that they would be satisfied with "living a comfortable life"-that is, being middle class.

…disconnect…• But 85 percent of the population cannot earn the six-

figure incomes necessary to support upper-middle-class lifestyles.

• The result is a growing aspirational gap: with desires persistently outrunning incomes

• The new consumerism has also set in motion another dynamic: it siphons off resources that could be used for alternatives to private consumption.

• We use our income in four basic ways: – private consumption, – public consumption, – private savings, and – leisure.

• When consumption standards can be met easily out of current income, there is greater willingness to support public goods, save privately, and cut back on time spent at work (to "buy leisure").

• Conversely, when lifestyle norms are upscaled more rapidly than income, private consumption "crowds out" alternative uses of income. That is arguably what happened in the 1980s and 1990s: resources shifting into private consumption, and away from free time, the public sector, and saving.

The aspirational gap

• The aspirational gap has been created by structural changes-such as the decline of community and social connection, the intensification of inequality, the growing role of mass media, and heightened penalties for failing in the labor market.

• Upscaling is mainly defensive, and has both psychological and practical dimensions.

Why we can’t ‘just say no’…

• the profoundly social nature of consumption ensures that these issues cannot be resolved by pure acts of will.

• our notions of what is adequate, necessary, or luxurious are shaped by the larger social context.

• most of us are deeply tied into our particular class and other group identities; our spending patterns help reproduce them.

The need for collective action

• Thus, a collective, not just an individual, response is necessary.

• Someone needs to address the larger question of the consumer culture itself.

• But doing so risks complaints about being – intrusive, – patronizing, or – elitist

The Consumer Knows Best

• Ours is an ideology of non-interference-– the view that one should be able to buy what one

likes, where one likes, and as much as one likes, with nary a glance from the government, neighbours, ministers, or political parties.

• Consumption is perhaps the clearest example of an individual behaviour which our society takes to be almost wholly personal, completely outside the purview of social concern and policy.

But consider structural biases & market failures in the operation of consumer markets

…consumer markets are neither so free nor so efficient as the conventional story suggests.

(btw - recall the dichotomy btwn the original ideology and the practices of the IMF acc to Stiglitz)

The basis of a new consumer policy …

– an understanding of the presence of structural distortions in consumers' choices,

– the importance of social inequalities and power in consumption practices,

– a more sophisticated understanding of consumer motivations, and

– serious analysis of the processes that form our preferences.

Consumer Knows Best ?..Only if you accept the conventional view that…

1. Consumers are rational. 2. Consumers are well-informed. 3. Consumer preferences are consistent.4. Each consumer's preferences are independent of

other consumers' preferences. 5. The production and consumption of goods have no

"external" effects. 6. There are complete and competitive markets in

alternatives to consumption.

Evidence of the contrary view:

• the "law of the invariant right": shoppers overwhelmingly turn right, rather than left, upon entering a store.

• The "decompression zone" at the entrance to a store

• The ‘brushed from behind’ phenomenon • Credit cards • Brand preferences

Consumption is Social

• consumption practices become important in maintaining the basic structures of power and inequality which characterize our world

A Politics of Consumption

1. A right to a decent standard of living. 2. Quality of life rather than quantity of stuff. 3. Ecologically sustainable consumption. 4. Democratize consumption practices. 5. A politics of retailing and the "cultural environment." 6. Expose commodity "fetishism." 7. A consumer movement and governmental policy

governmental policy

taxes on luxury and status consumption,green taxes and subsidies, new policies toward advertising, more sophisticated regulations on consumer credit, international labour and environmental standards,revamping of zoning regulations to favour retail

diversity, and the preservation of open space.

The end

Thank you