Consumerism had its roots in Britain’s Industrial Revolution in the 18th century when the availability of consumer products substantially increased.

Over the years, buying goods became a way of life and spread to other countries. In the 1950s, after World War II, the American consumer was even praised as a patriotic citizen for aiding the recovery of the country’s battered economy.

Consumerist culture now involves people spending more on items like cars, gadgets and clothes, instead of savings or investments. Consumers also buy these items often so as to keep up with trends, and are constantly looking to upgrade the quality of products and services.

It’s so hard to stand out these days … we have to get crazier, wackier and louder

Benefits

The only real benefit of consumerism is to improve the economy, says Dr Seshan Ramaswami, associate professor of marketing education at the Singapore Management University (SMU).

When citizens spend more to buy goods and services , it creates a cycle of demand leading to greater production and to greater employment, which leads to even more consumption.

Thus consumerism creates a boom in the consumer goods and services industries, and for the retailers that serve these industries.

Mr Hansen Yeong, economics lecturer at Temasek Polytechnic’s (TP) School of Business says rising consumerism may lead to market innovation and creativity too.

Trade-offs

However, the rise of consumerism has had a detrimental impact on the planet. For example, clothes and apparel from the fashion and textiles industries are made using extensive amounts of water, energy, chemicals and raw materials , all of which place heavy demands on Earth’s natural resources.

Increasing consumerism may also result in “a shift away from values of community, spirituality, and integrity, and toward competition, materialism and disconnection”, says US psychologist Madeline Levine, who has close to 30 years of experience.

Furthermore, a 2012 study in the journal Psychological Science revealed that consumerism may also lead to depression.

… people are incurring punitive levels of debt and working longer hours to pay for their … lifestyle

Nanyang Technological University’s (NTU) professor of marketing and international business Gemma Calvert adds that people are incurring punitive levels of debt and working longer hours to pay for their high-consumption lifestyle, which results in them spending less time with family, friends, and community organisations.

“Indeed, some believe consumerism as a culture is threatening the very fabric of our global society,” she says.

Continuing that theme, SMU’s Dr Seshan notes that the most reliable predictor of long-term happiness is building and maintaining many positive long-term human relationships. “Consumerism often comes in the way of those relationships,” he says.