Capitalism + Consumerism = Inequality.

There are many economic experts out there who emphasize on consumer confidence to improve the economy. We live in this consumerism world where swelling consumption is a sign that economy is propel in right direction and losing consumer confidence distress the economy. The society works in a way that encourages the people to actively engage in consumption. They say it is to ensure the economic cycle runs smoothly and bring prosper for the people.

Let me remind you with a simple supply and demand law: Increase in demand encourages production of the firm then the firm will hire more workers hence decrease in unemployment means economic growth. I deplore this theory, I disagree whenever government stated that we should increase the buyers confident to boast the economy. We live in this consumerism world where we are exposed into huge array of choices of goods and services. The development of multinational companies, the existence of retail companies and high brand company are the signs that there are massive increase of consumption. We live in this materialism world where an individual can spend $12.300 for a purse. However there are still 123000000 people live under the poverty line.

Looking back to the supply and demand law our world suppose to experience massive growth in economy as we have turned into consumerism world. In this case consumerism more like creating inequality of class instead of equality of class. The economy produces more because of high demand however the workers are being paid under the minimum wages. According to the World Bank report in 2013 there are 767 million people lived on less than $1.90 a day. The increase in demand is encourages firm to produce more and opens up job opportunity for the unemployed but they don’t mention the part where they are being paid under minimum wage. Where they are being exploited and alienated.

What is the point of raising the demand then if swelling in consumption do not bring economy improvement for the whole population ?

It is because the raising the demand is important for the executive group. It is important for the stakeholders, business owner and those who are in $250000 suits. Increase in demand is a good for the economy because it gives them profits, put investment in track and stability of the business. We live in the world of capitalist where the importance of the executive group is above everything. We live in this hegemonic world where the suffering of the workers do not take account into economic problem. Everything is fine as long things are work in capitalist favors. Something is deemed to be trouble when things begin to threaten the interest of capitalist and the suffering of workers is nothing for them. Ironically they earned profit from the exploitation. Welcome to the real world where the society works in a way that create the wealth become wealthier and the poor getting poorer.