CONSUMERISM - THE WORST WAY TO GROW?

When the world desperately wants to survive amidst problems of global warming and wide-spread poverty, we ought to look at consumerism and how fast and drastically it has affected the world. Consumerism is a social and economic order that encourages the purchase of goods and services in ever-greater amounts.

Where does this start from? If I say it starts from the stock market, the link may not seem direct. Let me explain, investors put in money on stocks of companies which they feel will grow, giving them higher dividends and price appreciation. Companies get this cash from investors and invest in projects which will bring highest returns. Companies are become biased towards growth because they want to show increased turnover and profits quarter on quarter to their investors. How do they grow? One, by manufacturing more goods and services, catering to more geographical locations, and two, more importantly by 'creating' more demand by using promotion and marketing. Today, advertising is a several hundred-billion-dollar industry, which is about ten times the entire GDP of the U.S. economy at the turn of the twentieth century when the industry began. This growth imperative is a result of the capitalist system, which extends beyond the investor to the system itself. 

If Infosys recently has not been growing it has been shunned by the investors, who are looking for greener pastures. Infosys on the other hand, by growing too slow risks being taken over. Very few slow-growers, would be willing to admit that and hence return the money back to the share holders, because of their inherent urge to grow. Central banks and Governments of all countries try to spur growth, because falling growth reduces investments, which in turn slows production ad sales. This is the gloom or recession, which could lead to depression or failure of capitalist system. Workers experience layoffs and default on their bank loans; falling profits and share prices in the stock markets deplete the value of pension funds; bankruptcies soar along with government budget deficits and budget cuts.

For this reason, most observers are very hesitant to question this growth imperative of capitalism. We understand the importance of consuming more. But have we missed out on issues that are probably more important than to keep the capitalist system thriving?

Human civilisation as a whole has caused ecocide 200 times more in the last 200 years, as compared to the last 20,000 years. Wake up call? Disparities between humans have never been so great. At United Nations University a reports says that the richest 1% of adults alone owned 40% of global assets in the year 2000. The question is not the sustainability of an economic system, the question is sustainability of the planet and true happiness of its souls. 

Consumption driven growth is an inefficient way of achieving reduction in poverty. Between 1990 and 2001, for every growth of US$100 in world's per capita incomw; just $0.60 made its way into the hands of the people who needed it. With this ratio to achieve poverty reduction by one dollar, an extra US$166 worth needs to be produced and consumed globally. Such an approach is both economically and ecologically inefficient. 

We measure what we produce, in GDP, as a measure of growth - which economists call a mathematical and universally common measure of growth. However, Nobel Laureate Joseph Stiglitz (on Sustainability and Growth) talked about the idea that “we grow what we measure." and because we are measuring the wrong stuff, we are growing wrong. 

I am not concerned about India's GDP growth slowing to under 5%, I am concerned about India's Gross National Happiness degrowing every year. Of course it may temporarily lead to more unemployment, crash in the stock market but if we address issues of happiness we probably do not need to worry. 

People, rich and poor alike, attempt to impress others and seek to gain advantage through what Veblen coined "conspicuous consumption" and the ability to engage in “conspicuous leisure.” In this work Veblen argued that consumption is used as a way to gain and signal status. Through "conspicuous consumption" often came "conspicuous waste," which Veblen detested.

Human mind has been re-programed to think happiness is consuming and possessing things, measured by the numbered of toys one owns. Changing that outlook, that has been shaped over the last century, is a big challenge. 

Contemplation in the path of spirituality and yog under a selfless Guru, may give us, the much required deeper thinking before we consume more than just-required.