Curse of consumerism

As a counter to the insidious phenomenon of consumerism, countries must come together to promote sustainable usage of resources to avert a range of ramifications

- KDP RAO

Consumer spending, according to Keynesian economists, fuels economic growth, and as such, it needs to be boosted through fiscal and monetary measures. Domestic consumption is, of course, a blessing for any economy, for it contributes to aggregate demand and ensures a robust growth in GDP. But while we celebrate the boom in the markets, the phenomena of ‘consumerism’ or over consumption often goes unnoticed. Consumerism is the preoccupation of society, typical of a capitalist economy, to engage in excessive materialism that revolves around reflexive, wasteful, or conspicuous consumption with ‘wants’ overriding the ‘needs’. It is associated with a value system whereby social status is perceived by affluence and, also a belief that possessions can provide happiness. Such overconsumption leaves disastrous consequences on the economy, the society and the environment, especially in developing countries with growing populations and poor human development indicators.

Initially a characteristic of the Western capitalist economies during the post-WWII economic boom, consumerism gradually laid inroads into third-world countries like India in the 1990s when the gates were thrown open by liberalisation. The advent of e-commerce has further fuelled the fire. According to Statista, in 2022, the online sales exceeded USD 5.7 trillion globally. A study by Salesforce in 2018 said that when 75 per cent consumers search for new brands of products online, 69 per cent of consumers feel that it’s important to see new merchandise each time they visit a store.