Consumerism: How It Affects Families Living in Poverty in America

Only available on StudyMode
  • Download(s) : 757
  • Published : April 27, 2013
Open Document
Text Preview
Consumerism: Affecting Families Living in Poverty in the United States

Katelynn O’Brien
University of Phoenix
COM/220 Research Writing

May 26th, 2013

Outline
I. Introduction of consumerism and brief explanation of its impact to the society II. Consumerism; definition and deep explanation of its impact to the world economies III. Advantages of consumerism

A. Economic developments
B. Growth and developments of companies
C. Production of quality by companies
D. Increase in production innovativeness
IV. Disadvantages of Consumerism
A. Competition increase
B. Dishonesty product promotion and advertising methods C. Environmental degradation
D. Poverty and dualism
V. Effects of consumerism to middle and upper classes individuals in an economy VI. Conclusion
VII. References

Introduction
Consumerism refers to customers’ social and economic tendencies that encourage them to purchase goods and services in huge amounts. Consumerism is an unhealthy economical habit that often results from economic influence among peers. Studies show that most Americans go for shopping not because they are in need of what they want to buy, but mostly due to influence by other shoppers, most of whom are friends and peers. Middle-income earners are the worst hit by consumerism. They spend a lot of money on goods and products that they do not necessarily need or rather they do not require at a given time. Rich people, on the other hand, mind about the necessity of what they spend their wealth on, and thus they are not easily influenced by the trend of consumerism in the society. Consumerism affects poor people negatively in various ways. Poor people depend on middle-income earners and the rich for their economic survival. On the other hand, middle-income earners fall victims of consumerism and often diminishing their ability to support the poor. Hence, there is an increased enlargement of the economic gaps between the poor and the middle-income earners in the United States. This paper highlights other factors that negatively affect poor families due to consumerism. Consumerism

Consumers ought to be informed decision makers before they get to the market place. However, the majority of them do not make decisions prior to getting to the market place, and thus they fall into consumerism behavior. Sellers are fully aware that a majority of the people make decisions upon what to buy once they get to the market place. With this insight, sellers initiate and propagate product promotions and advertisements of their goods and services in the presence of a consumer who has a high chance of purchasing a product that was previously unknown to him or her. This ideology led to the emergence of opportunistic market players, often producers of low quality products, with assurance of selling their products to the buyers. Hence, leading to the arising of consumerism protection acts and policies designed to protect consumers from dishonest sellers and producers, which indicates the high degree of consumer’s ignorance, and hence failure to make decisions of the goods and services that they need before getting to the market place. The majority of consumers rely on the product information given by the manufacture and they care little about the test results of the same product (Tyagi &Kumar, 2004). Advantages of Consumerism

1. Economic Development
Consumerism leads to economic growth and development of the world’s economies. It leads to increase in demand for goods and commodities in the market, hence attracting new producers and suppliers. Consequently, there is the creation of many job opportunities and improved living standards of many citizens in an economy (Goyal & Goyal, 2011). In addition, consumerism leads to globalization due to increase in demand of goods and services in the international markets. Globalization leads to economic development due to increase in the market...
tracking img