The Overspent American

“The Overspent American: Why We Want What We Don’t Need” was a very interesting video about spending and the idea of the new consumerism. There is a cycle of work and spend which consists of high productivity growth leading to higher income and more spending. People began working more and more over the decades to buy the things that they want and need. It is believed that the American dream has expanded as we move into further decades and more is expected of Americans. We used to think of the American dream as a small house with a white picket fence, a dog and a cat, two children, a car, and maybe a garage. Now it is said that everything has doubled and people want more.

The idea of the new consumerism is that people want to mirror the image of a six-figure income when in reality that is not possible for them. The three factors that led to this idea are: 1. Women began to move out of their neighbors and into workplace for more exposure to reference groups. 2. Income distribution moved to more inequality throughout the decades making the rich richer. 3. The role of the media played a role because they were always bias toward showing upscale consumption through high levels of advertising. We also think of competitive consumption because we want the same or more of what other people have.

Products were branded with “the name” on everything in the 1970’s which ranged from water to coffee to t-shirts. The well educated consumers were willing to pay for status premium. Private consumption began crowding out public good while leading to a diminished social health. Consumerism is taking place of human interaction. Since so many parents are working more and not spending as much time with their children, they are buying more and more for them. Basically, they are “buying their love” because they are not there and want to be good parents.

I agree and disagree with this video to some extent. I know this video is focusing on the middle and upper social classes, but we have the CHOICE to spend. Just because these advertisements are thrown into our faces doesn’t mean we have to go out and buy the products. They are not forcing us and making us go out and spend money. People are trying to be like everyone else when they can’t afford to have as nice of things. If you don’t have to money to pay for something you want, then you don’t need it. I understand that many needs such as the electricity, phone, food, and gas have all gone up and to some extent people do need to work more. However, our basic necessities are still here and will always be here. The things we want are expanding because of technology and innovations which look more appealing to us. I know some people who have a very high income and they are in debt because they think they can afford things when they really can’t. These people go on long vacations around the world and come home and brag about going there when the whole vacation is charged on their credit card. This is frustrating because it is their problem and not the idea of the new consumerism.

Do you agree or disagree? Do you think that overspending is caused by the people or media? Do you think that the American dream has expanded? Are you affected by the new consumerism?