What Drives the American Culture of Consumerism?
Stores and Advertisers Use Short Term Memory to their Advantage
Jul 5, 2009
American culture was built on the concept of "life, liberty, and the pursuit of happiness." The founding fathers really meant the pursuit of education, intelligence, and freedom to be.
American Culture of Consumerism
Alas, some Americans now take the pursuit of happiness to mean tangible, consumable things. Idolizing wealthy celebrities and trying to recreate their looks, combined with credit, has created a downward spiral for many families. Credit was once only given to a handful of affluent people directly from stores. Now everyone can get credit and everyone can have multiple credit cards. The problem is that not everyone can pay for them.
How does the Sales and Marketing Industry Impact Buyers?
The sales and advertising industry has a huge effect on what people buy. People suffer gravely from short term memory and are very nearsighted when it comes to money. Think about whenever a person goes in to buy a car. Usually the first question a sales person will ask is how much they are willing to spend, per month. They will ask if they are comfortable with three hundred dollars, four hundred dollars, etc.
If the buyer says three-hundred is better, the financing office can then fudge with the price of the car, and the financing percentage to come out with a three-hundred dollar per month figure. The buyer knows he can afford three hundred per month, but what he or she may not realize or even think about is how long he or she will have to pay those three-hundred bucks. Three-hundred dollars for thirty six months is $10,800. Three hundred for forty eight months is $14,400. Essentially the same vehicle if financed over a longer period of time in order to get a lower monthly payment will end up costing $3,600 more.
Look at the Big Picture to Avoid Debt and Spend Wisely
It is important to ask whether or not there is enough money to cover an item in its entirety. Unfortunately, people often only see the small monthly price, and "know" they can afford that. If they can afford $25 per month only, then they cannot afford $2000. If credit has to be used, then that item should be paid off as soon as possible to pay for its actual value and not more.
Credit is only a means of getting what a person wants right away. It is instant gratification that comes at a high price. Saving up for a large item is the best choice, should be the only choice for wants, and is a better way to appreciate purchases. There is nothing like running a long race and seeing the finish line at the end.
America has lost sight of the race, and in return, has created hurdles so tall many cannot get over them. Consumerism is killing people financially, and keeping up with the Joneses is no longer as innocent as it once was.
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