Working Paper Centre for Global Political Economy Hedonistic Consumerism: From Want-Satisfaction To Whim-Satisfaction. Andrea Migone Department of Political Science Simon Fraser University CGPE Working Paper 04-05 January 2004 Centre for Global Political Economy Department of Political Science 8888 University Way Simon Fraser University Burnaby BC V5A 1S6 Canada Telephone Fax Email Homepage 604 291 4293 604 291 4786 [email protected] http://www.sfu.ca/~cgpe/ Markets, Consumption And Consumerism Consumption is an integral part of social and biological life. Consumption is necessary for human beings to sustain themselves, to develop the skills and abilities that allow them to function in society, and is fundamental in the running of the economic system. In fact, markets developed, by and large, as a response to these needs: they constitute an efficient way of producing and allocating the goods and services that are required to satisfy them. Consumption aimed at the healthy development of the physical, intellectual and emotional spheres of human beings should be an inherent right for all persons. I propose that, for the purpose of our analysis, we define as human consumption the level of goods and services that are required to satisfy these needs.1 A different aspect of consumption is its degeneration into consumerism: accepting that it is through the possession and/or consumption of increasing quantities of products that human beings can achieve self-development and self-fulfillment. It is a nonreferential process, as Bauman notes: “Consumer society and consumerisms are not about satisfying needs not even the more sublime needs of identification or self-assurance as to the degree of ‘adequacy’. The spiritus movens of consumer activity is not a set of articulated, let alone fixed, needs, but desire” (2001: 13). Commodification is now, as noted by Lukács (1971), diffused across all classes and represents the defining moment of capitalist relations. Increasingly, the elements of human action are brought into the arena of consumption and reified2 as consumer goods (Hennessy 2000). Even if we do not fully subscribe to the notion that the structure of consumer society dictates consumption patterns through the creation of cultural models that foster consumerism, while propagandizing ‘free consumer choice’ (Adorno and Horkheimer, 1972; Marcuse 1964), even if we recognize that advertising is not an all powerful determinant of consumer behaviour, but only a party to the shaping of consumer attitudes (Bauman 2001; Ohmann 1996) still we are returned to the question of why so much of societal interaction is expressed through consumption. There is, I argue, a tendency in capitalism to manipulate consciousness through culture and desire. This manipulation is not the final determinant of all consumption choices, but it cannot be dismissed out of hand, in the same way in which the material referents of consumerism cannot be explained away by assuming the irrelevance of socio-economic structure on micro-economic activity as is often the case in unsophisticated liberal economic thought. After World War II the nature of consumption began to change along two crucial dimensions. On the one hand, our economic system became driven by consumerism, we started to consume much beyond the level at which human consumption is satisfied (our 1 Of course these needs will vary from society to society but should include the safety of the person and a reasonable access to food, shelter and medical care at all ages and in all economic conditions. 2 The process of reification, the transformation of all aspects of human life into ‘objects’, in Lukács’ Geschichte und Klassenbewusstsein, tackles more than the issue of commodification (the role of commodities in a single, over-arching economic system): it explores the implications of reducing social relations to a reified minimum, of fracturing the wholeness of human life in irremediably individual elements from which is nigh on impossible to glimpse the whole again. This process is further extended by the elimination in capitalist society of all references to the actual production of commodities. Production and consumption of goods become completely unrelated in the capitalist mystique, increasing alienation and facilitating hedonistic consumption. -1- consumption patterns have increased the number of goods and services we consume, and the speed at which they are consumed). Secondly, most of society consumes to satisfy induced wants rather than needs. This pattern I call Hedonistic Consumerism, and I argue that it leads to two related crises: an ecological crisis and an economic crisis. From the ecological point of view, Hedonistic Consumerism imposes an everincreasing strain on resource stocks and ecosystems around the world. Even to the casual observer it is immediately evident that levels of consumption are extremely high, especially in the advanced capitalist economies, which are composed by Western Europe, North America and Japan. This, I argue, depends on the influence of an industrial system premised on a model of mass-production, made possible by technological advances, and sustained economically by mass-consumption. In the remainder of this article I shall use concepts drawn from the French Régulation School and I am therefore going to synthetically introduce the key elements of its economic analysis: the notions of Accumulation Regime (AR) and of Modes of Régulation (MOR). Regulationists postulate that there are two fundamental levels at which we must look to understand and analyze economic activity. At the ‘global’ level there is the Accumulation Regime; this is the dynamic structure of the productive system, evolving in a particular direction and linked to specific technological elements3. At the second level are the Modes Of Régulation, different for each economy, which mediate between the needs of the capitalist system to achieve a viable accumulation process and the needs of society to maintain a viable and coherent structure. Their content depends on the historical and material characteristics of specific nations or groups of nations. The Modes of Régulation follows the logical and hierarchical elements of the specific capitalist model. Five elements are particularly important in this context: the first element is the credit and monetary regime, which would in the first instance be charged with generating a payment system. A second basic institution is the form of competition, which regulates firms’ activity in the market. The third necessary institution is the “wage-labour nexus, defined as the precise set of conditions and rules which affect the productive use of labour and the income formation of wage-earners” (Boyer 2001: 81). While these institutions are often conceived as self-implementing by classic economic theory, they need the support of legal and regulative tools that are implemented by the state. The role of the State is then a crucial element for a capitalist economy. The final institution expands the regulatory and coercive power of the state beyond its borders. The international regime or configuration organizes the relationship between the nationstate’s domestic economic order and the international style (Boyer 2000b; Boyer 2001). 3 The definition of accumulation regime in the glossary to Régulation Theory: The State Of The Art, is “[t]he set of regularities that ensure the general and relatively coherent progress of capital accumulation, that is, which allow the resolution or postponement of the distortions and disequilibria to which the process continually gives rise. These regular patterns relate to: 1- The evolution of the organisation of production and of the workers’ relationship to means of production. 2- The time horizon for the valorization of capital, which offers a basis for the development of principles of management. 3- A distribution of value that allows the reproduction and development of the different social classes or groups. 4- A composition of social demand that corresponds to the tendencies in the development of productive capacity. 5- A manner of articulation with non-capitalist economic forms, when they hold an essential place in the economic formation under study.” (Boyer and Sayllard, 2002:335) -2- In the article I shall concentrate in particular on the Accumulation Regime and on the relationship between the structure of the mode of production and the composition of social demand that supports it. The first step will be to analyze the nature of this nexus during the Fordist period. The Fordist Accumulation Regime The Fordist model began to congeal around its production phase: the assembly line, reliance on economies of scale, and automatization all were necessary for the emergence of the new Accumulation Regime. Through it large amounts of standardized goods could be produced at comparatively low cost. Still, the new Accumulation Regime needed a mode of consumption to match this emergent mode of production and make long-term capitalist accumulation viable. As noted by O’Hara (2003: 21) “The Fordist regime of accumulation in the 1950s and 1960s thus constituted both a sustainable production system or style and a mode of regulation of consumption, not simply in the United States but through all the major capitalist economies.” This could be achieved in part by the dramatic drop in prices afforded by economies of scale and technological advances, and in part by creating a culture of consumerism. It is during the Fordist period that the act of consuming becomes the paramount mode of economic interaction. The nature of consumption becomes selfreferencing: the satisfaction of desires, many of which induced by the socio-economic setting in which consumers find themselves, becomes the sufficient cause for consumption. Fordism solved the related problem of workers’ disposable income by increasing wages to support diffused consumption, trading off high profit margins for consistent ones (Boyer and Orléan 1991). Within OECD nations, the effectiveness of these arrangements entered a phase of relative decline in the 1970s. New arrangements began to emerge as profits in the classic Fordist economic powerhouses of industrial production became ever thinner. In the US and UK, high profits are now reaped in the financial sector often by means of speculative investment. Nonetheless, mass consumption still remains a central element of the arrangement. The Emerging Post-Fordist Accumulation Regime The Post-Fordist system is still looking for a specific format around which to define its final structure. Profit margins in the traditional industrial sector declined, while increasing for the speculative and financial sectors, especially in the US. New modes of production have been emerging, variably related to new technologies and information flows. The real contribution of these new elements is at the centre of a complex debate (O’Hara 2003; Cantwell and Santangelo 2000; Barnett, 2001; Tabb 2001; Phillips 2000; Papadakis 2000; Yates 2001) but the economic data shows a trend towards increasing consumption often time financed through private debt (O’Hara 2003: 31). On top of that “[w]hile the mode of regulation of consumption underlying the 1950s to 1960s long wave upswing was broadly based on the majority of the population, the consumption mode of the 1990s was based, at most, on a quarter of the population.” (O’Hara 2003: 34). Consumption then has been swinging towards a relatively smaller section of the -3- population of late. This, I argue later, depends in part on the progressive transformation of goods and services into status conferring symbols operated by the logic of Hedonistic Consumerism. The Post-Fordist production/consumption nexus still has the economic effect of generating large amounts of affordable goods. On the other hand, resources and the environment come under increased pressure because more inputs are required to massproduce. The global economy has driven the prices of many primary resources down while increasing their rate of exploitation. At the same time, the new production system allows for product differentiation and highly variable pricing. From an epistemological point of view, the ideological progress of Neoliberal notions of shareholder value and efficiency has been very deep, even if, empirically speaking, their true impact on markets has been less than clear (Fligstein 2001). From an economic point of view allocating these resources towards hedonistic wants, along with structuring production and consumption patterns towards a consumerist model, means that, on an aggregate scale, scarce resources are being diverted from need satisfaction. This poses an allocative problem: allocative efficiency within markets oriented towards Hedonistic Consumerism seems to fail somewhat in that market mechanisms appear unable to distinguish between hedonistic wants’ satisfaction and needs’ satisfaction. In this is to be identified the economic crisis to which I was referring before. While it makes short-term economic sense to allocate productive inputs to hedonistic wants’ satisfaction, in the long-term this is likely to exhaust resources that will be needed for needs’ satisfaction. In many cases our economies are harvesting resources well beyond their renewal rates (Daly 1997).4 Fish stocks, upon which a large majority of humanity, especially in the developing world, depends for its protein input are dwindling on a world-wide scale, timber reserves have fallen, both water quality and quantity have deteriorated (Shiva 2001), even in the developed world, and so forth. Consumerism rather than human consumption is responsible for this change and for the emergence of an increasingly complex global environmental crisis. In the next section I deal with the impact of consumerism on production and consumption patterns alike, and the notion of the market. Section Three presents some trends of consumption in OECD economies and Section Four advances some conclusions drawn from the discussion presented here. 4 One should not get too comfortable with the notion of renewable resources either; fish stocks can theoretically be managed and their numbers kept steady, trees grow back and so forth, but this too requires inputs in terms of resources like clean water, food, and nutritional values from the soil and in many cases these elements are beginning to become scarce. This is why these resources are better termed conditionally renewable resources. -4- Consumerism, The Spirit Of Modern Capitalism I noted above how the usual description of markets consistently relies on the image of an arena bringing together people who want to purchase goods and services, and people who desire to sell them. Mediated through the relative abundance of, and the relative need for these commodities, a price is fixed and an exchange takes place. The great strength of markets is that, in most cases, nobody ‘has’ to purchase a good they deem too expensive: because the demand generates the offer, actual market exchanges are positive sum games. Sellers dispose of something they wanted to get rid of and buyers acquire something they wanted or needed. If something fetches a high price more sellers will try to procure that commodity and offer it on the market and, after a while, its price will be curbed.5 While this is an appealingly straightforward description, it is also an incomplete one. Markets are more than arenas for the exchange of goods and services: they frame such exchange within specific socio-institutional constructs, which necessarily embody power relations (Weber 1922; Elliot 2000; Smith 1963; Fligstein, 2001). The institutional forms that are in place in any given situation impact on the economy through the mediation of the political sphere (Boyer 2003: 4). The historical and material characteristics of different societies lead towards different socio-institutional arrangements regulating economic exchange. Nonetheless, I argue that capitalist exchange has followed a long-term trend of increasingly consumerist nature. First of all, let me state unequivocally that I consider economic relations to be inherently social relations (White 1991; Sen 1972). The way in which they are institutionally organized determines what we define as economic system. Capitalism is an example. Like any other system of social relations, capitalism is based on, and functions according to, a set of values, cultural elements, social characteristics, and material realities. Economic exchange predates the modern capitalist organization and, while modern economists strive to convince their public that the market system as it exists today is the apex of a technical evolution in the matter of economic interaction, there is evidence that this is rather the historically specific organizational standard of economic exchange (Jessop 2002). Consider, for example, the class of economic exchanges that belong to the gift economy (Godelier 1999; Lévi-Strauss 1987; Mauss 1969; Rasmussen 2000). In some archaic societies gift giving was a particularly common type of economic exchange. In Melanesian society gift giving was based on self-interest and obligations alike. Revolving around the obligations of giving (including as many other actors as possible in the process), receiving (refusing a gift is tantamount to admitting one’s inability of returning it, and involves a loss of status), and of repaying (the central element of gift economies; it requires that a gift be repaid with a worthy interest) the gift economy relied on magical 5 Of course the market system is not designed to be particularly ‘humane’: it is designed to be efficient. As such, it fosters competition, marginalizes those who cannot compete successfully, and generally reduces the ability of social actors to choose alternative means of exchange (Li, Xing. 2001. The Market Democracy Conundrum. Journal Of Political Ideology 6 (1):75-94.). -5- and religious elements to create relationships among the economic actors and couched many of these exchanges in terms of reciprocal obligations.6 These exchanges established a cycle of prestations and counterprestations where gifts could assume the value of wages, contracts, or donations and certainly reflected the material realities of the Melanesian economic bases where goods were produced or harvested at different times in different regions, and, therefore, could not have easily been bartered simultaneously except in exceptional cases. A specific type of exchange, the kula, effectively created a division of labour between seafaring communities and rural ones to overcome such an impasse.7 In a region with sparse densities, and where simultaneous bartering was at best difficult, both the magical elements of gift exchange and the interpersonal linkages and obligations that they created, reflected the socio-cultural background of these societies and solved some of the problems related to economic exchange. In fact, it would not be inappropriate to see gift giving, at least in part, as a way to reduce negative externalities in the system.8 By linking economic exchange to the realm of religion and magic, ancient Melanesian societies effectively couched material interactions in a metaphysical setting, and reduced the risk otherwise inherent in purely economic transactions within their specific setting. This is not the only example of cultural and material elements influencing the nature of economic exchanges. In Southern Italy, for example it is not that unusual for family members to exchange goods or services on a delayed compensation basis, on a quasi-barter model, or at cost.9 The process is well suited to the material conditions of what is a relatively capital-poor area. By exchanging services and goods in the manner described above, and by delaying or reducing compensation, the family unit prevents an unnecessary outflow of capital and builds obligational ties and solidarity among its members. Of course, this type of exchange is not the primary one, but it still exists and it is relevant to social relations. These two cases do not exhaust the examples of sociocultural impacts on the system of economic exchanges; they simply are intended as a reminder of the fact that economic activity is strictly correlated to and interdependent with social and personal elements that differ from society to society. 6 Gifts were not simply a material exchange, with them came a spiritual iota of the giver, binding the two parties at a meta-physical level. 7 Gifts also had the role of establishing political hierarchies among groups, but this falls outside the current subject matter. 8 Externalities can be defined as occurring when the interest of economic actors is affected by some factor other than the price system. These third party effects, for which no appropriate compensation is paid, can be negative or positive and arise from the production and/or consumption of goods and services. A classic example of negative externality is pollution caused by industrialization. 9 To exemplify imagine that a person who earns his living as a plumber will install free of charge new fixtures for a sibling’s bathroom. As the latter is a general practitioner, she may reciprocate by seeing the former for free. In this case familial relations that allow for delayed compensation to take place abate externalities’ costs. -6- Today, the dominant type of economic exchange is based on modern capitalist tenets and on a set of socio-cultural values that are as specific and constraining as those that regulated archaic Melanesian peoples. To begin with, capitalist epistemology has utilitarian and individualistic premises: economic actors behave so as to maximize individual satisfaction. The market in its ideal format, it is also claimed, is an inherently objective process devoid of bias because of its technical nature. Its results, unless polluted by state intervention, are efficient and have a positive effect on the economic fabric forcing modernization, rationalization, and progress. As a corollary of this epistemology, comes the notion that social and economic interactions are separate in capitalist societies. Classic economic doctrine assumes that human beings tend to be egoistic utility maximizers in the economic sphere, that their activity is geared towards obtaining the best possible economic return for their effort and that, for all practical purposes, no calculations other that those premised in strict economic elements are taken into account when market interactions are concerned (Friedman 1953; Johnson 1971; Leeson 2001; Parkin 1986; Stigler 1954; Stigler 1965). This Manichean image of ‘economic’ human beings and ‘social’ human beings is troublesome (Sen 1972) leaving much of social interaction in the perhaps efficient but not very discriminating hands of the Homo Oeconomicus. While, the Austrian School Of Economics deserves a place apart, especially Hayek’s insightful analysis of knowledge and its role in the creation of a viable market (Hayek 1945; Hayek 1948; Hayek 1964; Hayek 1973; Hayek 1976; Hayek 1979). Still, in mainstream liberal economic thought, the market process is often too simplistically depicted as rationally modeled and directed. Capitalism is also a ‘growth only’ model, at least in its current incarnation. It is so important to show continued profit and growth that a negative connotation is attached to simply maintaining the economic status quo: we call it stagnation. The whole system is premised on increasing levels of consumption; these can be achieved either by increasing the number of consumers, or by increasing the levels of consumption, or by combining the two. It is consumerism that has come to dominate capitalist organization in the Twentieth Century. While levels of luxury consumption always existed, their impact on the overall economic system was relatively limited: the consumption of commodities along hedonistic lines was, by and large, limited to the élites. While it may have been possible for members of Seventeenth Century Venetian nobility to drink daily the then formidably expensive coffee or chocolate, or for Spanish élites to consume much beyond their needs, it generally was a minority that indulged in such behaviour (Dyer 1989; Fox and Turner 1998; Jardine 1996; Pennell 1999; Roche 1997). This type of consumption can be defined as Affluent Consumption: the use of luxury goods by a relatively small if wealthy group of consumers (Esch 1995; Fairchilds 1993). Of course, demand for luxury goods is elastic10 and so it can, under certain conditions, sustain an economic system. 10 From an economic perspective the demand for goods varies with the changes in both goods’ prices and consumers’ income. The income elasticity of the demand coefficient (eY= %variation in the quantity demanded / %variation in the consumer’s income) will be >1 for luxury goods (with an increase in income will come a proportionally larger demand of such goods), while it will be <1 for necessities. The same relationship can be expressed in terms of a relationship between the relative variation of the demand (q2- -7- There certainly is a difference between this type of economic behaviour and the current patterns of consumption. The emergence of modern capitalism is linked to the provision of mass goods rather then luxury goods (Weber 1958: 265-267). This is a very important distinction in that it implies a specific Accumulation Regime and a particular relation between the production and the consumption phases. Consumerism may well have extended the number of goods for which the demand is elastic by attaching social status attributes to these goods: certain clothing and accessories, certain foods and drinks are now charged with particular relevance and their frequent (and often time-limited) consumption is linked to status and social awareness, as with trendy clothing.11 This is not to say that these are completely misbegotten trends, or to state that societies should adhere to a Maoist-like homogeneity. Human societies are intrinsically different and elaborate constructs, which tend to evolve and refine their nature. It is important, though, to look dispassionately at the effects that this model of consumption has on the economy and on society at large. This pattern of consumption, where most people in the developed world consume well beyond their needs, is a relatively new event and coincides with the increasing relevance of Hedonistic Consumerism as the organizational tenet of capitalism. Wells (1972), in his Picture-Tube Imperialism, demanded that capitalism be analyzed using consumerism as the material culture’s increase of consumption. He proposed a fourfold categorization of societies along their production/consumption patterns. This categorization is intended in Wells’ work as an ideal-type construction. No real society matches perfectly any of these four models that should be used as analytical tools rather than descriptive ones. Table 1. Wells’ Categorization Of Societies High Consumer Low Consumer High Producer Overdeveloped hedonistic Ascetic developmental Low Producer Declining parasitic Underdeveloped traditional Adapted from (Wells, 1972: 195) q1/q1) and the relative variation in the price (p2-p1/p1), therefore: e= [(q2-q1)/(p2-p1)*(p1/q1)], where pn indicates prices at time t and qn indicates quantities at time t. 11 By watching certain TV ads alluding to the fact that consumption of a certain product will ensure social acceptance, success with the opposite sex, acceptance from your offspring, and so forth, one wonders if the magical element that modern societies have worked so hard to eliminate (or at least marginalize) is not creeping back through our colas. -8- His notion of overdeveloped hedonistic society serves to analyze the conditions of the Post-Fordist mode of production, and its consumerist consumption patterns. I suggest that we should incorporate his insight when analysing Hedonistic Consumerism. This latter reflects a pattern of excessive consumption (Hooks 2000) to be sure, but not simply that. It also incorporates the notion that commodification is being pushed ever further, incorporating increasingly more social elements and determining increasingly larger differences between those who can afford to consume and those who cannot and that superimposes often alien elements onto society (Norberg-Hodge 1999). Hedonistic Consumerism has an additional facet etched into it: the wants that are bound to it are relentlessly stimulated and consistently excited through the manipulation of the social fabric. Today society is constructed on inherently unstable and uncertain grounds, but The consumer market has achieved an uncanny feat of reconciling and blending two mutually contradictory values which are both avidly sought by members of an individualized society: it offers, in one package deal, the badly missed assurance and the keenly desired yet elsewhere unavailable guarantee of goods-replacement, even a moneyback guarantee, in case the presently sought assurance wears off and a new assurance needs to be put in its place. The consumer market promises, and delivers, the reassuring certainty of the present without the frightening prospect of mortgaging the future (Bauman 2001: 24). The situation that fosters the process of commodification is the common element of contemporary consumption. Consumption is now far removed from basic needs and a wide array of variables are used to explain it. Colin Campbell (1987, 1991, 1994) notes that consumption is turning into Hedonistic Consumerism (his term too) because it is based on the psychological process of daydreaming. After biological desires are fulfilled, consumers must consistently re-invent new desires to keep consuming. A self-replicating cycle of dream, desire, acquisition and disillusionment is then established within which the search for novel products is really a proxy for the quest for psychological satisfaction of the desire. Because of the nature of the process, disillusionment sets in after consumption and new products must be found. Consumption is not important relatively to the absolute level at which we consume but rather as a reference to the consumption of others: consumption is, in Rober Frank’s terms, positional competition (Frank 1985). At the same time, the Post-Fordist pattern of consumption has also shied away form the more or less egalitarian levels that had been incorporated in the Fordist one. Less people are involved in it but are still engaged in a ‘race to consume.’ Not a completely novel idea this one; in fact Tibor Scitovsky (1976: 325) had already noted as much: “We must acquire the consumption skills that will give us access to society’s accumulated stock of past novelty as a source of stimulation.” Of course this was not necessarily the key to happiness; on the contrary, Scitovsky dubbed us The Joyless Economy, a point still arguable today (Sen 1996). -9- At the same time, positional competition is premised on the over-production (and consumption) of private consumer goods at the expense of savings, the environment and leisure time (Schor 1996, 1998). I argue that the process of consumption is an induced one. This is rooted in the creation of functional systems within society, which structure the activity of human being along the lines of ‘false needs’ and give material existence to these choices in the form that our economy offers us (Marcuse 1964). Within this narrow spectrum commodification becomes the central element of economic relations and consumerism the mode of this activity. The cultural element of consumerism is central to the process. The creation of needs is reflected not only in the elements of planned obsolescence, but also in the generation of specific socio-psychological traits. These range from the illusion of diversity that thinly veils the mass uniformity of modern commercialization efforts (McLuhan 1951), to the postmodern model premised on the colonization of reality by ‘simulacra’; the ultimate reductio ad consumptium of everything around us, flanked by the progressive disappearance of meaning (Baudrillard, 1994). This system, Baudrillard argues, is hegemonic in that “our society thinks itself and speaks itself as a consumer society. As much as it consumes anything, it consumes itself as consumer society, as idea. Advertising is the triumphal paean to that idea” (Baudrillard 1998: 193). Consumption naturally fulfills more than the simple ‘needs’ of the consumer. Certain goods have highly symbolic value, possession and/or use of certain objects add to their use value a powerful status-defining element. These extra-utilitarian values are socially defined and, therefore, subject to constant evolution. That consumption satisfies more than simple material needs, does not excuse us from trying to assess if there are material relations underlying consumption patterns. Nor can we simply seek refuge in the relativist notion of consumption being dictated by ‘consumer tastes.’ Aside from the fact that people seem to differentiate quite handily between luxury consumption and necessary levels of consumption, the question remains of why tastes appear to broadly covariate with constructed trends, rather than having a stochastic pattern. Whether the reason for consumption is emulation, indulgence, or self-expression or a mix of the three (Fischer 2003: 6), our society looks increasingly to consumer goods as the accepted form of expressing ‘individual’ choice, determining status, showcasing wealth, and satisfying psychological needs. It matters not, in a way, if consumerism is driven by a need to express individual choices in an ever more homogenous society, as Simmel (1990) argued, or to indulge the need to reach for more and more consumption, or to emulate others. Ultimately the process passes through commodification, and consumerist consumption patterns dovetail with both the Fordist and Post-Fordist production models. Modern capitalism has a global reach. It hinges on the interdependence of industrial production (an important part of which has now moved to the Newly Industrialized Countries), the emerging Post-Fordist arrangements,12 its spatio-temporal 12 With Post-Fordism comes not only the abandonment of much of the tools aimed at securing social peace in the capitalist system, but also the fragmentation of the working class in its classical Marxist definition, a - 10 - fixes (Jessop 1999; 2000; 2002), and consumerism. These elements are closely connected but consumerism is particularly important because it offers a ready outlet for mass consumption and, therefore, a way of achieving continued profits. The push towards increased levels of consumption and a consumerist attitude has both temporal and geographical dynamics. It established itself in the United States in the period after World War II and in the early 1950s, mainly as a response to the industrial overcapacity that was a legacy of the conflict, and as an effect of the Fordist industrial model, which had become paramount in the period between the two world wars. It then spread to Western Europe and Japan, as their industrial and economic bases began to be rebuilt under the U.S. reconstruction plans that followed the defeat of the Axis. With U.S. aid and grants came the standard industrial set up of industrial mass production and, on its heels, mass consumption had to be established to support the system. Even if the economic models that actually emerged from this intervention were not mere reproductions of the U.S. one, but nationally specific evolutions (Quémia 2001; Lipietz 1991; Boyer, 2003), one of their keystone elements remained stimulating consumption. The notion of stimulating demand (in fact increasing consumption) as the answer to avoiding economic downturns was also contained in the core tenets of Keynesian policies. It is not at all surprising, than, that as supply-side intervention became the norm for advanced industrial and post-industrial economies, the call for mass consumption coming from the private sector was mirrored by the spending sprees of governments.13 Patterns of consumerism progressively deepened and expanded. Increasingly commodities are being turned into induced wants for the population of both the developed and the developing world and their rate of replacement becomes ever faster. The need to consume to belong, which is well established in affluent communities, is now beginning to take hold even in the poorer areas of the world (Burke 1996; Lu 2001; Staab 1997; Zhao 1996). Consumerism therefore grew as the requirement of a specific mode of mass production, and within the context of specific historical events. The need for mass consumption was seconded and sustained by the philosophy of Keynesian policies. Consumerist patterns expanded to new regions as economies grew and more market actors entered the production-consumption cycle. These patterns also increased in speed as goods and services were consumed at accelerated rates. Consumerism assumed a hedonistic nature, and the act of consumption itself became cloaked in symbolic meaning as an indicator of social status, and as an activity having a sui generis intrinsic value. Hedonistic Consumerism sustains and directs mass consumption by elevating the satisfaction of wants at the same level of needs’ decreasing amount of free time for those who actually work and more occasions and incentives to consume. The transition from standardized mass production to batch production and the creation of differentiated products for niche markets are key elements of this transition. On the other hand, mass consumption remains a fundamental element of the economic system. 13 It is noteworthy to mention that while Neo-Liberal economics has singled out state debt as a major hindrance to economic stability and development in the current system, it has very little to say about consumer debt. - 11 - satisfaction, and by equating individuals’ participation in the market (both as producers and consumers) to participation in society. As the American economy, which had driven this phase of capitalist development through its sheer size, military power, and industrial model, began to mature, it entered a crisis of productivity, and faced the declining power of the United States (Aglietta 1976; Allen 1996; Arrighi and Silver 1999; Boyer and Juillard 1995). The economic system began to adapt to the new situation: at its core a transition towards financial instruments became evident (Arrighi 1994; Harvey 1989; Silver and Arrighi 2003) even if its limits and future reach are still unclear (Boyer 2000a; Boyer and Souyri 2001; Chesnais 1997; Chesnais 2001; Peck and Tickell 1994). At the same time, at least in the most advanced and affluent core, it went beyond the Fordist mass production arrangements towards batch production, diversification of consumer goods, and embraced flexible patterns of both work organization and production (Allen 1996; Boltanski and Chiapello 1999; Boltanski and Thévenot 1991; Coriat 1997; Gomez 1996; Salais 1991; Salais 1992; Salais 1994). Consumption, though, remains a central element of our society (Gottdiener 2000; Lodziak 2000; Lodziak 2002; Stearns 2001). The current phase of capitalism and its cultural-ideological elements have a global reach and are being sustained by the concomitant activity of Multinational Corporations (MNCs), nation-states, International Organizations, and individual consumers (Burgess 2001; Witt 2001). Probably for the first time in history, the economic sphere is on its way to become predominant in defining the tenets of human society. Its narrative is hegemonic in the Gramscian sense that it is better to rule by convincing than to rule by coercing. Some of its premises are so commonly accepted that the discourse they underpin not only is seldom challenged, but it often offers the only organizational and legitimizing basis for social organization. Notions like the primacy of the market, the need for nation-states to be ‘competitive,’ the relevance of participation in the market as an indicator of social participation, and the role of consumption in the assessment of self-worth, have become so widely diffused and so ingrained in the subconscious and conscious elements of social and political organization of the market that very few of those who accept the validity of the market as an allocative mechanism dispute them on other levels (Beabout and Echeverria 2002; Morgan 2003). Hence, we are increasingly confronted with a division of the opposite camps among those who refuse to accept not only Hedonistic Consumerism but, often enough, refuse the market tout-court, and those who support Hedonistic Consumerism and its consequences. This is a pity, as a ‘third way’ that will allow for the exploitation of the potential of market organization without requiring unsustainable levels of resource extraction is urgently needed. In the next section I shall try to show that our production and consumption have become bound to Hedonistic Consumerism and that, in the long-term, are inherently unsustainable. - 12 - Patterns Of Consumerism In the preceding sections I have sketched the cultural-ideological narrative of Hedonistic Consumerism, noting briefly some of the problems intrinsic in its implementation, and argued some points regarding its economic bases. In this section I outline some of the production and consumption patterns that have recently come to dominate the organization of capitalist economies. Before I do that let me summarize my position regarding Hedonistic Consumerism. While luxury consumption always existed it does not compare to Hedonistic Consumerism. The latter is possible only in modern capitalistic economies and is a relatively novel extension of an ultimately unsustainable mode of production and consumption, which is correlated to the need of sustaining mass-production beyond the end of the Fordist compromise. The need for mass consumption to match mass output fostered the growth of a sector devoted to the creation of induced wants and, at the same time, required and favoured the development of an attitude that equated ownership and consumption with the symbolic representation of status or individual expression. The global economy has allowed not only for the division of the various phases of industrial production among different geo-political regions, but has also fostered the spread of consumer goods and consumerism throughout the globe. The results of this process have been mixed. On the one hand, the extension of the market economy has benefited, at least at an aggregate level, consumers across the world by making a wider variety of consumer goods and services available at a lower cost. On the other hand, the levels of consumption have increased quite considerably increasing pressure on the environment. The table below shows the percentage change in consumer price indexes for OECD countries between 1986 and 2004 (with the data for the years 2002 to 2004 as estimates). The general trend among the member countries is clearly towards a reduced rate of increase in consumer price indexes. The OECD index went from a 12% increase between 1987 and 1988, to an estimated 2.9% increase between 2003 and 2004. This is, from an economic point of view, good news. It means that all sorts of goods and services are more accessible to consumers. - 13 - Table 2. Consumer Prices Variations Consumer Prices Variation on Previous Year 14.0 12.0 10.0 8.0 6.0 4.0 2.0 Japan United States Es t. 20 04 Es t. 20 02 20 00 19 98 19 96 19 94 19 92 19 90 19 86 -2.0 19 88 0.0 OECD Sources: OECD, Various Documents; 2002, 2003 and 2004 figures are estimates. As consumer price indices fell, so did the cost of a variety of primary inputs required for production of manufactured goods. Along with them fell the price indices for OECD export manufactures. Using the prices of 1995 as an index (1995 prices = 100), the OECD calculated the relative variation of various commodities’ prices. Once again the decrease in cost is noteworthy: in 2001 agricultural raw materials dropped to 67% of their original price (estimated 69% in 2004), food to 70% (estimated 76% in 2004), ores, minerals and metals to 77% (estimated 83% in 2004), just as OECD manufactures (estimated 84% in 2004). - 14 - Table 3. Prices of Primary Commodities And Manufactures Prices of Primary Commodities 130 Dollar Indices 120 110 100 90 80 70 60 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Food Agricultural raw materials Minerals, ores and metals Sources: OECD, Various Documents; 2002, 2003 and 2004 figures are estimates. The previous table once again shows a positive trend for consumers, as both the cost of primary commodities and the related costs of manufactures decline.14 But what was the impact of these trends upon the actual level of consumption within the OECD? To try and answer this question we can examine the changes in the levels of real private consumption expenditures; the following chart deals with the percentage changes of this expenditure over the previous year in the OECD countries and in the European Union. 14 Of course, the decline of these price indices benefits producers too, albeit in a less uniform manner by reducing production costs for some and investment costs for others, but here we are focusing more specifically on consumers. - 15 - Table 4. Real Private Consumption Expenditure OECD Group and EU Real Private Consumption Expenditure 4.5 4.0 Percentage Change 3.5 3.0 2.5 2.0 1.5 1.0 0.5 European Union 20 04 20 02 20 00 19 98 19 96 19 94 19 92 -1.0 19 90 19 86 -0.5 19 88 0.0 Total OECD Sources: OECD, Various Documents; 2002, 2003 and 2004 figures are estimates. The average annual increase of real private consumption expenditures for OECD countries in the two decades between 1986 and 2004 stands at 2.8%, an important increase, especially if we consider that 2.8% is also the average yearly increase of real GDP for the OECD area, and that, over the same period, real public consumption expenditure, rose on average only by 2.2% every year (OECD, 2003, Annex Tables 1 & 4). Below are the tables that show similar trends in three major industrialized countries: Japan, the United Kingdom, and the United States of America - 16 - Table 5. Japan, Private Consumption By Type Of Goods Quarterly Data (19601999) Durable goods Non-durable goods 19 95 19 90 19 80 19 75 19 85 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 19 70 BN ¥ Private Consumption, Constant Prices / National Base, Japan Services Sources: OECD, Various Documents Table 6. USA, Private Consumption By Type Of Goods Quarterly Data (1960-1999) Private Consumption, Chained Constant Prices, National Base, USA 3500 3000 2000 1500 1000 500 Durable goods Non-durable goods Sources: OECD, Various Documents - 17 - 19 95 19 90 19 85 19 80 19 75 19 70 19 65 0 19 60 BN US$ 2500 Services Table 7. United Kingdom, Private Consumption By Type Of Goods Quarterly Data (1960-1999) Private Consumption Constant Prices National Base, UK 60000 50000 BN £ 40000 30000 20000 10000 Durable goods Non-durable goods 19 95 19 90 19 85 19 80 19 75 19 70 19 65 19 60 0 Services Sources: OECD, Various Documents The OECD itself released in 2002 its study of household consumption, which was completed with an eye to analyzing the goal of sustainable development (OECD 2002). The report analyzes the “day-to-day actions of households in OECD countries and how these actions affect the environment. It presents data and trends in five key areas of household consumption: food, tourism travel, energy, water and waste generation. The data shows that environmental impacts from household activities have grown over the last three decades and are expected to intensify over the next twenty years, particularly in the areas of energy, transport and waste” (OECD 2002: 10). The results of the report indicate that, with the exception of water consumption (which either stabilized or fell), OECD households have seen their consumption levels increase. Between 1973 and 1998, energy use in OECD countries increased by 36% and is forecast to be a full 35% higher by 2020, and households are an important segment of this consumption. Transport, which is bound to grow dramatically between now and 2020, will also impact very heavily on the environmental health of the world. Waste, which will grow by 43% between 1995 and 2020 to the tune of 700 million tonnes every year, is largely dependent on household consumption. Food consumption, another household issue, is increasing in the OECD in most food categories, and impacts on the environment at various levels (OECD, 2002: 11-12). So consumption is increasing at all levels and forecasts are not particularly optimistic regarding the sustainability of these patterns. Another important point is that, - 18 - while consumption levels went up across the globe, their growth has been particularly sustained in the wealthy, post-industrial societies of the advanced capitalist economies. In this same area aggregate population growth has been quite contained as compared with the rest of the world. This means that Hedonistic Consumerism is drawing an increasing percentage of world resources towards the already over-consuming North of the world. The OECD report focuses on a specific set of conditions that must be met to promote sustainable consumption, both in the economic and regulatory/policy field (shifting the structure of consumption, making environmentally-friendly goods available, creating a price structure for consumer goods and services, which incorporate the environmental costs) (OECD, 2002: 13-14). The issue of how much pressure can be sustained by the environment is unlikely to yield a simple answer (McKibben 1999; Ger 1997; Mazur 1994; Crocker and Linden 1998) and escapes a simple categorization (Wilk 1999; Fine 1995; Appadurai 1986) but the general trends should be enough to create, if not apprehension, at least curiosity regarding the long term effects of these patterns of consumption. In the next section I try to address some of the issues that, in my opinion, are generated by Hedonistic Consumerism. The Contradictions Of Hedonistic Consumerism As mentioned in the introduction, Hedonistic Consumerism carries two deep internal contradictions: on the one hand it fuels an ecological crisis (Sklair 2002) that is becoming ever more complex as globalization increases the speed at which ecological problems are being transmitted around the globe (Held and McGrew 2002: 8; Spangenberg and Lorek 2002). On the other hand it misallocates scarce resources towards the satisfaction of induced wants rather than meeting real needs. The Post-Fordist period did not usher a reduced workload for employees; instead, employment went through a process of flexibilization (Boltanski and Chiapello 1999; Boltanski and Thévenot 1991; Salais 1991) and intensification (Shipman 2001) which meant higher unemployment, longer hours and less job security. Education, health care and social security have increasingly been removed from the sphere of what society should provide and placed within the realm of what the market can sell. It required that, alongside the consumer, modern society deploy the producer to satisfy a ‘growth only’ model of the market, and premised social inclusion on one's inclusion in the economy (Godelier 1999). Those who are not included in the twin processes of production and consumption are excluded from society and looked upon with suspicion if not contempt. The process of globalization has changed, sometimes radically, the localities in which goods are produced and consumed but the trend has been one of increasing consumerism and reification. Consumption and possession define and support identity construction and reproduction, and the reification process has been extended (Hennessy 2000; Shipman 2001) across classes to become the defining element of capitalism, in apparently direct contrast to Polanyi’s (1944) notion that, while human activity is conditioned by economic factors, only in exceptional cases is it determined by the needs - 19 - of material want-satisfaction. Could it then be the case that, as noted in Turner’s (1998) analysis of Lukács, exchange values and reification have become the tool through which social relations, although it may be perhaps more accurate to call them consumerist relations, are measured? Lukacs blended Marx and Weber together by seeing a convergence of Marx’s ideas about commodification of social relations through money and markets with Weber’s thesis about the penetration of rationality into ever more spheres of modern life. Borrowing from Marx's analysis of the “fetishism of commodities,” Lukacs employed the concept of reification to denote the process by which social relationships become “objects” that can be manipulated, bought, and sold. Then, reinterpreting Weber’s notion of ‘rationalization’ to mean a growing emphasis on the process of “calculation” of exchange values, Lukacs combined Weber’s and Marx’s ideas. As traditional societies change, he argued, there is less reliance on moral standards and processes of communication to achieve societal integration; instead there is more use of money, markets, and rational calculations. As a result, relations are coordinated by exchange values and by people’s perceptions of one another as ‘things’ (Turner 1998: 553). Whether we agree with Lukács or not, there is little doubt that consumption levels are increasing for goods and services. This is both the reflection of wealthier societies, and of an increased relevance of consumerist philosophies not only in the industrialized countries, but also across the globe (Jameson 1990). Consumption rates increase, and the ‘life span’ of products or trends tend to be ever shorter. Economies of scale and mass consumption still remain central to our production-consumption regimes, devouring everincreasing quantities of goods and services. All indicators show increased consumption straining resources beyond their natural limits: wild fish stocks must be supplemented by farmed ones, not to restore the former to their original size but simply to keep up with demand, rice and grain must be genetically modified to increase size and yield, and so forth. Technology allows us to beat some of the environmental limits that exist but the real question that begs to be answered is for how long, and how efficient is it to continue allocating such an enormous amount of resources to the satisfaction of induced wants rather than channelling them towards a more even human and economic development? The answer may be, as noted by Deleuze and Guattari (1988), in asserting production rather than consumption, in defining what we consume in our own personal terms rather than in terms of the socio-economic pressures we are exposed to. It is necessary, though, to recognize the material elements of consumerism such as the production-consumption nexus and the commodification and reification that socio-economic relations have experienced in our society. Without such recognition consumers remain alienated from both the reasons for consuming and the objects they consume and there is no alternative rationale to consumerism. - 20 - References Adorno, Theodore. 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