Consumerism is being spread throughout the world due to Globalization. Consumerism even affects countries where such an approach is a radically different way of viewing life that inhabitants are used to. Therein lies a source of conflict. Many questions are raised about consumerism, and we’ll attempt to look at many of them in detail in coming post. First we’ll take a realistic look at consumerism, both its advantages and disadvantages.

Pros of consumerism

1. The increased demand from the increased desires created in modern man by consumerism have given rise to a vast global middle class. Although millions of people still live in poverty, the affects of consumption have eradicated the same for others.
2. Consumerism has created vast consumer choice. As people became more sophisticated consumers, their demands for varied products increased. As demand increased, suppliers rose to fulfill their needs. Modern consumers have more choice concerning products than group of people in history.
3. Consumerism has improved customer quality. Again, as the customer became King, they demanded the finest quality at the lowest price. Now consumers can pay small amounts of money for products of extremely high quality.
4. Consumerism has resulted in lower prices and a higher standard of living. As demand rose and products became cheaper, consumers could spend less on items and have more money to spend on their quality of life.

Cons of consumerism

1. A high rate of consumption has caused a number of health issues that are now bordering on epidemics. Obesity, colon cancer, and other maladies can be attributed to overconsumption of certain foods. Sometimes too much choice can be deadly.
2. Consumerism has pushed the world towards climate change. In the drive to produce more for consumption, man has created a number of untenable processes that put great strain on the environment.
3. Overconsumption of energy is putting huge strain on earth’s natural resources. Mankind is making the push towards alternative energy right now because the decisions of the past century are haunting society. Extremely high levels of energy use result in higher prices for energy and goods.
4. Consumerism is creating more competition worldwide for resources. As resources dwindle and demand stays high, more people are competing for the same things. With increased competition comes increased tension.

In lieu of alternatives, consumerism is clearly the main driver of improvements worldwide. The “profit motive” is a strong one when it comes to making scientific discoveries that can advance the species. But clearly there are significant drawbacks to consumerism that have to be considered along with the advantages.

Consumerism lacks a strong moral code to go along with behavior. “Buy more” isn’t much of a mantra for people to base their lives on. And clearly, overconsumption can end up being just as much of a problem as any other. Consider that 100 years ago, people were concerned about starving to death. Although some people in parts of the world still face this challenge, millions of other people are more likely to get sick from the overconsumption of food that results in obesity.

Consumerism has become the driving force in most people’s lives, without a great deal of discussion. In the coming years it seems important to enter into a debate concerning the most effective ways to improve this system, while staying very aware of the peril that exists if consumerism gets out of hand and leads to overconsumption. The same sort of damage that happens on an individual basis happening on a global one could be devastating.

Many of these financing companies lent out money to consumers with very little regard for the Three C’s of Credit – Character, based on history of repaying debts; Capacity, the amount of debt that a consumer can comfortably afford to handle; and Capital, the current assets a consumer has.

If you happened to be a homeowner, you could get even more financing dollars by getting a HELOC – or home equity – loan that allowed you to borrow outrageous amounts of money based on the value of your home, sometimes up to 125% of its estimated value.

With this free flowing credit, consumers gorged on a buffet of spending. Whether it was to finance dream vacations, to purchase the latest electronic device or to pay for a night out on the town, the cash is long gone. Now all that remains of the ‘good time’ is a credit card bill with a high interest rate.

These companies helped facilitate the ability to “live beyond your means” as a lifestyle with no forethought as to what might happen should market conditions change, and now they’re left with a bag of burning poop on their doorstep as the economy has shifted.

They’ve addressed the issue by tightening their belts. They’ve canceled credit cards, decreased credit lines and increased interest rates, even on customers that have paid on time consistently.

It’s another reason people should rethink how they are doing business and about what products they choose to consume. Being an overweight, debt ridden consumer was never the American Dream, but somehow it has become a reality.

Cutting back simply can’t hurt and credit card companies aren’t your friend – they’re like the drug dealer that gives you the first hit for free knowing that you’re going to get hooked and give you enough rope to hang yourself if you aren’t careful.

William Shakespeare artfully said, “Neither a borrower, or a lender be.”

I believe he had things right.