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READING 1

prereading

predicting

previewing specialized vocabulary

2

Overall Impressions

Before you read, discuss the following questions with your classmates.

1. Do you think it is acceptable for people to go into debt to buy the things they want? What is yo ur opinion of credit cards?

2. In terms of economic prospects, do YO LI have more or less opportunity than yo ur parents had? Do you think your children will be better off than you?

3. Some people say that "money is the root of all evil." Do yo u agree or disagree?

Predicting can help you understand what you read . Before you read, do the following activities. They ,vill help you predict what the reading selection will be about.

1. The title of this read ing includes the word consumerism. What do you think thi s reading is going to be about? What is consumeris'm?

2. Read the Language Note on page 5. How does the phrase "keeping up with the .Joneses" rel'ite to the idea of consumerism?

Listed here are some of the specialized words that you will find in this reading selection. Knowing and understanding these words will help you understand the reading selection better.

" Review the defi nitions of these words. " Identify which of these words, if any, you already know. ~ Try to paraphrase the meaning of each word. " Underline these words in the reading selection.

social mobility (n. ph. )- the abili ty to move from one social or economic level to another (paragraph I)

conspicuous consumption (n. pl/..)-an obvious display of wealth to attract attention (paragraph 2)

totalitarian society (n. pI/.. )-a society in which the government has total control of all aspects of life (paragraph 4)

robust economy (n. ph. )- a healthy and strong economy (paragraph 8)

intergenerational mobility (n. pI/.. )-social mobili ty that occurs from one generation to another, as when children move into a higher social class than their parents (paragraph JI )

PART 1 Overall Impressions 3

Consumerism and Social Mobility The United States has the world's largest single-nation economy. Why? Largely

because people in the Urtited States are very active consumers of material goods. In 2003, personal consumption accounted fo r 70 percent of the domestic l econ­omy. Many Americans are in the habit of spending the money they have rather than saving it. In fact, a sigrtificant number of Americans will even spend money they don't have. They will borrow money to buy the things they want.

2 Such energetic2 consumerism is nothing new. It has a long history in the United States. In 1899, Thors tein Veblen, a renowned social critic, described a social phe­nomenon he called "conspicuous consumption." He said that the Americans of his day exhibited a constant desire for bigger and better things. Many economists note that this attitude still persists in American society. To use a familiar English ex­pression, Americans want to "have it all."

3 What does the term consumerism mean? As used in economics, the term de-scribes economic policies that emphasize consumption. The assumption3 behind these policies is that an increasing consumption of goods is economically desir­able. There are many obvious advantages to the consumer culture of the Uni ted States. A tremendous volume4 of goods is available. People in the United States have many options when it comes to the products they buy. Competition is high, so the prices of goods are relatively low compared to other countries. A comfortable

[domestic (ad). ) - relating to the internal affairs of a COlmtry :<energetic (adI ) - full of energy; active ; lively :lassump ti.o ll (n.) - a preconceived idea that something is unquestionably U'ue "volume en.) - amount or quantity, especiaUy a large amount

4 CHAPTER 1 Money Matters

lifestyle is available to almost everyone. Most economists believe that a vigorous, consumer-oriented economy provides the greatest good for the greatest number of people.

Advantages and Disadvantages of Consumerism 4 Advocates of the American consumer culture say that consumerism is entirely

natural. People must judge for themselves what is necessary for a good life and what isn't. No one has the right to dictate what others can or cannot purchase. What is excessive and wasteful in one person's eyes may not be so from another person's point of view. SuppOlters of unregulated' consumerism believe that any attempt to restrict or curtail" the free access to goods is the first step toward a cen­trally planned or totalitatian society.

5 According to some critics, however, there are m<\ior disadvantages to the con-sumer culture of the United States. There are problems on both the personal and the societal levels. When a society promotes consumerism, people will often be­lieve that personal happiness comes from purchasing material goods. Some people purchase goods or consume materials in excess of their needs. In a consumer cul­ture, people are more likely to believe that the "good life" comes from owning things. Luxmy items become necessities.

6 In a consumer culture, people will sometimes identify ,vith a particular prod-uct. In other words, they find it desirable to link themselves to the product or to a brand nanle. They want the status of the product to say something about their per­sonality. They hope that other people will associate the status of the product with the person who has purchased it. In this way, people tty to enhance7 their own sta­tus. Owning many brand-name products might help improve a person's image in the eyes of others.

7 An intense consumer culture puts pressure on people. They feel that they must spend more and more money in order to achieve status. They believe that they must buy certain products if they are to be accepted into a particular social class. In such a culture, people are always comparing what they own to what other people own. If some people are buying new or upgraded products, soon everyone else will want t.o buy those same products.

8 As a consequence, one velY serious problem is personal debt. Unlike the citi-zens of some other countries, Anlericans are willing to go into debt to buy the things they want. Some economists believe that this willingness contribut.es to the nation's robust economy. Other financial experts point out that it can also have disastrous8

conseqnences, especially for individuals. For example, some people in the United States borrow money to buy things they don't really need. Credit cards are very easy to obtain9 and use in the United States, but the credit card companies charge a high interest rate for their use. Consequently, some people end up owing more money to banks tllan they eam in income. Such habits have become a national problem affecting even the U.S. government. The foreign debt of the United States is the

"unregulated (o.d,J.) - l1ncontrolled by nl1e~ 01' l<lws {ito curtail (11. ) - to shorten or refiucp ' to enhance (1'.) - to lnake greater in vallie or quality Rdisastrous (adj.) - very bad ; terrible !Iro obtain (11,) - lo gain possession of; to acqu irE'

PART 1 Overall Impressions 5

largest of any country in history. Some critics say that the "borrow-and-buy habit'· in the United States is an addiction.

Land of opportunity? 9 One great advantage of the American economic system, many people believe,

is the opportunity that it creates for people at all levels of society The United States is commonly called the "land of opportunity." For much of the nation's his­tory, Am ericans have believed that they live in a socially and economically mohile society- that is, a society in which it is possible for hardworking poor people to im­prove their economic and social stat.us. Americans continue to cherish W their self­image as a unique land where past and pal'entage put no li mits on opportunity Many A.Il1ericallS believe tha t their country remains a land of unbounded 0ppOlt.unity.

10 A report appeal"ing in the WaU Sl:reet Joul1wl has suggested , howeve r, that. "the reali ty of mobility in America is more complicated thall the myth." The author of the report, David Wessel, notes that. "Americans s till think of their land as a place of exceptional opportunity" even though "the evidence suggests otherwise'" In fact, most data indicate that the gap between rich and poor in th e United St.ates has been steadily widening since 1970.

11 The report also quotes Gary Solon, an economist at the University of Michigall. Solon says that "intergenerational mobility" in the United States "has not Challged dra­matically" in several decades. In 1992, Solon challenged the conventional academic wisdom, arguing I1mt there is "dramatically less mobili ty than suggested by earlier re­search." Subsequent" research work confinns l ~ his conclusions, leading many econ­omists and SOCiologists to a new conclusion. Despite the spread of affirmative action, the expallsion of community colleges, and other social changes designed to give peo­ple of all classes a shot a t success, Americans are no more or less likely to rise above or fall below their pal"ents ' economic class than they were thirty-five years ago.

1IIto cherish (~ ',) -- to think of fond ly; 10 1,1<lH> gr("H· MfE'('\ ioll for 11 subseque nt (:1.(ij.) - foll owing in t. inw l::to confirm (1'.) - t.O f'st<lhli sh 1.])(' t'l'r!aint~· or truth uf sOIlwlhing

LANGUAGE NOT E "Keeping up with the Joneses"

This popular phrase identifies peop lp's desire to equal or match t.h(' €'conomic s tatus of their Ileighbors, usually by owning the saille things that the neighbors O\vn. Th e suggestion is that if tIlE' neighbors (tilP .Jones family) buy a new CHr, onE' must ';keep up" ,",vith t hem hy also buying a nev,: car. WllY the nanw .Jolles? lt is a common last name in English-spea king cOlin tries, so it is poss i b l~ rh t'lt every nE'ighborhood w ill have <l ·JO!1f'S fami ly livillg it. Cultural historians believe rhat rhf' expression originaterl with a (,Olllie strip clrH\\'I1 b~r Arthllr "Pop" !\1om3nc\ cailed Keepill.(j ( rp wil li 'lie ./OIIP8Cf' that mn in American newspapers from HH:3until184 1. In the ('omi(' st rip , ill€' .]ol1Pses lived next door to the s t.rip 's main ('hanlcteTs. The .Jollesps nevc r actually appearecl. but t.he l11 <-1 in cha.ract ers spokr of t.hem often, sOIllC'timt's express ingjealo llsy for t hE=' f<'l.llcy t h in~s the .]olleSf'S owned.

6 CHAPTER 1 Money Matters

READING SKILLS

EXERCI SE 1

EXERCISE 2

Finding the Main Idea

To understand the main idea of a reading selection, it is important to understand why it was written. Choose the main purpose of this reading selection from the following choices. Explain why you think your choice is the best answer.

What is the main purpose of this reading selection" <l. AmericilIls think only about money b. Consumerism has helped the U.S. economy but has also created

problems for some people. c. Americans are gclling richer with each succeeding gencration. d. Personal debt is the number one problem in the United States.

Reading for Details

Choose the correct answer based on the reading selection.

1. What phenomenon did the social critic Thorstein Veblen describe? a. consumerism

b. personal debt c. conspicuous consumption d. social mobility

2. In the reading, consumerism is defi ned as a. 70 percent of the domestic economy. b. economic policies that emphasize consumption. c. a philosophy necessary for living the good life. d. a tremendo us volume of available goods.

3. According to advocates of consumer culture, a. a comfortable lifestyle is available to almost everyone. b. people believe that pe rsonal happiness comes from purchasing

material goods. c. luxury items are necessary. d. consumerism is entirely natural.

4. Which of the following is ?wt a disadvantage of a consumer culture? a. People consume materials in excess of their needs . b. Unemployment is a major problem. c. Personal debt is hard to overcome. d. People arc pressured tu spend more in order to achieve status.

5. Consumers choose products that say something about their personality. a. True b. Paise

PART 1 Overall Impressions 7

6. Why is the United SLates called the "land of opportunity"? a. People in the United States believe that they can improve their

economic status by working hard. b. Credit cards are easy to use. c. The gap between rich and poor has been steadily widening. d. Everyone can keep up with the Joneses.

7. The economist Gary Solon believes that Americans easily rise above their parents' economic class . a. True b. false

8. Which of the following was reported in the Wall Street Journal? a. The borrow-and-buy habit in the Uni ted States is an addiction. b. Americans no longer think of their land as a place of opportunity. c. The gap between rich ancJ poor has widened. d. The reality of social mobility in the United States is complicated.

VOCABULARY SKILLS

EX ERC ISE 3

EXERC ISE 4

Academic Word List

The following worcJs are frequently found in academic writing. Knowing these words will help you read all kinds of academic texts. There are many ways to learn new vocabulary words. Each reading selection will have suggestions on how you can leam the Academic Words. Try the different suggestions until you fmd the one that works the best for you. The number in parentheses indicates the paragraph in this reading selection where the word appears.

1. economy (1) , 7. persists (2) 16. image (6) economists (2) , 8. policies (3) 17. intense (7) economics (3), economic (3), 9. obvious (3) 18. achieve (7) economically Gl) 10. purchase (4) , 19. consequence (8),

2. consumers (1) , purchasing (5) , consequently (8) consumption (2), purchased (6) 20. financial (8) consumerism (3) 11. advocates (4) 21. data (10)

3. significant (I ) 12. restrict (4) 22. evidence (10)

4. phenomenon (2) 13. access (4) 5. exhibited (2)

23. conventional ( 11) 14. promotes (5)

24. research ( 11) 6. constant (2) 15. identify (6)

25. expansion ( I I)

vocabulary Notebook

A vocabulal)' notebook is a good way to lealTl vocabulary words because it gives you an opportunity to easily review the words. It is important

... ,_L·

8 CHAPTER 1 Money Matters

to organize the vocabulary notebook neatly. You might o rganize it in alphabetical order. This will help YOll practice the words many times. For each word, include these pieces of information :

the worci

" a sho rt dd init.ion or oppos il e ~; ('l hrie f f~xa rnpl p.: (8. \vh () lp sen tence is not necessa ry)

Here is an example:

word

economic (ad))

e conomic 5 ys tern

e conomic status

e conomic clas s

economicall y (adv)

e conomicall y mobile

society

economics (n )

economists (n)

economy (n )

dome stic econom y

consumer_oriented

economy

robust economy

Definitio n

re lating t o mOM Y

and to buying

and se lling

I) not w as ting mone y

Z) related to mone y

and to bUying

and selling

t he study of w ealth

or mone y

people who study

w ealth or money

the fina nc ial sys t e m

o f a country

Exa mple

economic policies

economically

des irable

leading e conomists

compe titi ve economy

You can use your vocabulary notebook to remind you of words you already know. You can also add more information about the word each time you read it in a different text. Here is an exampl e:

Word

IJ e conomy (n)

dome stic econom y

consumer_oriented

economy

robust e conomy

Def inition

t he finanCIal s ys tem

of a country

Example

competitive

e conomy

( w lIl i·, I.lled)

EXERCISE ;:;1" ... ~.,

PART 1 Overall Impressions 9

Z) economy In.!

strive for economy

in the use o f

natural re sources

emphasize economy

In the budget

3) econom y (ad)'!

thriftiness:

not spending

unnece ssarily

le ss expe nsive;

priced or de s igned

to save money

Discovering Related Word Forms

exerCise household

economy

economy car

Once you learn a word, it is ,'nsy to learn related words. Learning rf'iateci words is a good way 10 increase your vocabulary. Here aJ'e SOllI e of the words from the Academic Word List and related words. Praetice pronounc­ing the words. Stndy the list. Then answer the questions that i,)llow the list.

Nmm "" " . /, ,i\£Zjctttve r;~(j Vfi:Tti ''''.":'"; "

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pm] n () Ii ( ) 11 ])J'( )[ll() t(' pnllll o/ jOllal

inl (' lIsil \ illl {' lIsi l\' illtcIlS(\ in t(~l l sd ~J

illl c nsiv('

liml tH:p ri l lrl llU ' fi l l il l lCi;l ] l! llill1 "iall\'

(,XPCl I1Si{) !1 {'x prll\d ('xpr-l/lSiV( , [' X 11(l l lSiv(' 1.\'

C( 1llSll l lli lU I H 1 ("O ilS lJ !I H .. \ ('0 liS 11/ 11 i Il,g

1 )(~ I "Sis l el IU ' I )(' rsisl IH'l"sisr.(' l l l 1)( ' l"S ist Pl llly

i( lent ilkalioll. id (' lll i f\ iil(' 111 ilVing iC]("' !ltily

;'1(: i1i ('v{' !lH'1l1 iw hicv(' ;wllieving

2. \·Vlli d t wo rds ( ' I H I i ll /.iou '?

H. iI . _ _ _ _ _____ _

Il. _ _ _ _ _ _ _ __ _ ( '

r: . _________ _

3. 'I' l l(' words ('luli llg ill I i('11 (1]"( ' wl1a l parI o f SIH'('ch ( n 0 1l1l. vp riJ ,

10 CHAPTER 1 Money Matters

4. Which words end in al?

a. b. _______ _

5. The words ending in al a re what part of speech (nou n, verb,

adjective, adverb)? _ ___ ___ _ ___ _

6. Which words end in tive? a. _ ___ ___ ___ _ c. b. ________________ _

7. Words ending in live are what part of speech (noun , verb , adjective,

adverb)? _ _ _ _ _ ___ _ _ _ _

8. Which words end in -it .IJ?

a. _ _ _ _ _ _ _ _ _ _ b. ________________ _

9. Words ending in ity are what part of speech (noun, verb , adjective ,

adverb)? _ _ _ _ ___ _ _ _ __

10. Which wo rd is the same in the noun and verb forms'?

DISCUSSION ACTIVITIES

Working with Groups

Many of the Discussion Activities in this text require group work. The purpose of this exercise is for you and your classmates to develop rules for be ing a responsible group member. You will use these ru les as you do the activities in the book. You should review the rules each time you do a group activi ty.

1. Write the answer to the following questions:

a. Are you a shy or an outgoing person? Explain why you are shy or outgoing.

b. Did you ever work on a project with a group of stud ents before? If the answer is yes, explain the project.

c. Was it a successfu l or unpleasant group experience? Explain.

d. What are three things that good group members do?

2. Now work with a group of three or four students.

a. Arrange your desks or chairs in a circle so t.hat. you are aU facing each ot.her.

b. Introd uce yo urself. Make sure YO ll know the name of each group member.

Offering Your Own Opinions

PART 1 overall Impressions 11

c. Tell your group members about your answers to the questions in Activity l.

d. With your group, choose what you think are the five most important qualiti es of a good group member.

3 . With your classmates, compile a list of quali ties of good group members. Your teacher will post these rules in your classroom. These will be the rules that Y OLI wiU foll ow for group projects.

Practice the rules you have created for group activities as you discuss the following questions:

1. With your group, make a list of the ten people or things that make you the happiest. Classify the items in your list as people, consumer 'items, or nonconsumeT 'items . Based on the list yo u made, do you think yo u are consumeristic? Discuss your conclusions with yo ur group members.

2. In some cultures, charging interest is considered immoral. With your group members, discuss the reasons why the charging of interest might be regarded as moral or immoral.

READING-RESPONSE JOURNAL

The best readers think about what they read. One way to think about what you have read is to write about it. Choose one of the following topics, and write about it in your reading journal.

1. The reading selecti on discusses some of the advantages and disadvantages of consumerism. In your opinion, do the advantages outweigh the disadvantages? Or do the disadvantages outweigh the advantages?

2. What did you learn about American consumerism in this chapter that is new to you? What surprised you? Why did it surprise you?

WRITING TOPICS

Choose one of the following topics, and write a composition.

L. Everyone wants to Jive the "good life." What is your personal definition of the good life?

2. Is "keeping up with the Joneses" an exclusively American phenomenon, or do you think it is common in other cultures a.s well? Give examples.