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April 3, 2004 The Tangled Web of Overspending
[asfo_del]
According to Juliet Schor, author of The Overspent American: Upscaling, Downshifting, and the New Consumer, about half of Americans feel that they do not make enough money to afford the things they need. That includes 39% of people making between $50,000 and $100,000 a year.
As someone who spends about $7000 a year, I've always found it hard to understand how it is that many people have a difficult time stretching $50,000 to meet their budget. One explanation is the disconnect that is created by the media, in which an affluent lifestyle that is unaffordable to the great majority is represented as the norm. A lifestyle so affluent, in fact, that even those in the higher earning brackets cannot afford it.
The media's relentless manipulation of our collective perception has been very effective, and it's false ideals have permeated the culture. Because we're inherently social creatures, it's hard for one person to resist an overwhelming cultural trend. Driving an old, beat-up car [or - heavens! - riding the bus], shopping at thrift stores, or living in a tiny, spartan apartment makes you an eccentric, especially if you actually make enough money that you could afford to live more expensively.
Juliet Schor argues, in a recent interview, that the psychology that drives people to overspend is complex, and cannot be explained away by the desire to fulfill fantasies of wealth or create an identity. She believes that it is, first of all, class-based. "We can't really understand what our consumer practices are about without first considering the ways in which people use them to symbolically reproduce or elevate their class position." The media's misrepresentation of what constitutes the norm has ratcheted up everyone's perception of the life they "should" be able to afford at every socio-economic level. People compare their own lifestyle not only to their neighbors', the proverbial Joneses, but to the media's misleading standard, and many have come to believe that other people generally are much richer than they actually are. After all, you can see how your neighbors live but not how much debt they may have accumulated to get there.
It's a common belief that $60,000 is a relatively modest income, but in the United States, according to the Census Bureau, only 26 million people, or less than ten percent of the total population, have an annual income of $60,000 or more. The median individual income in this country is $22,000. Worldwide, only 1% earn over $25,000 a year.
Although he's not referring to consumerism, but to the public's acceptance of widening economic inequality and enormous salaries at the very top of the economic scale, Wolffbern also addresses this issue: "New class-based social norms have emerged about what constitutes a reasonable salary, and how a much a person "needs" to get by -- what upper-income groups view as necessity is of course unavailable to most people in the country. This culture [is] nurtured by new marketing campaigns advertising luxurious lifestyles and a media that more and more narrowly targets upper-income groups.
"But these riches are not available to all. Part of the culture has been the normalization and acceptance of a persistent and deepening income and wealth inequality, with the situation of middle and lower income groups largely absent from the news or popular culture."
The second factor that Schor believes leads to overconsumption is our own denial. This denial is made psychologically necessary by the combination of deep anxiety and ambition that very often drive spending. Anxiety about having spent too much or on the wrong priorities in turn leads to avoidance: people don't want to know how much money they may be frittering away, because that would deepen their feelings of dread and misgiving. We often feel both guilty and unfulfilled about how we've used our money once it's gone. [Added to that, the fairly complicated math that governs interest on borrowing makes it easier for us not to know how much money we're actually parting with.] And many of us wouldn't want to admit, even to ourselves, that we may be motivated by status-seeking or vanity, but how we perceive our status in society correlates with our measure of our own worth.
It's important not to fall into the trap of blaming the victims, the consumers themselves, who have been ensnared in a web that is not of their creation. We're familiar with apocryphal tales of welfare recipients who wallow in luxury. Conservatives gleefully spin the fiction that the overextended and struggling majority is responsible for its own poverty through the greed to consume beyond one's means. But overspending is driven by the production side of the equation, by corporations who overproduce to boost profits and then prey on our human psychology to induce us into buying into their scheme: working more to produce more, so that we can then purchase the very goods that we ourselves and our fellow exploited workers produced. "The very logic of capitalist market economies requires constantly escalating levels of consumption to absorb the expanding output of goods and services."
But it's also important not to relinquish responsibility for our own complicity in the scheme. It's true that even in the U.S. there are significant numbers who are so poor that they are barely able to subsist, and to suggest that anyone in that circumstance could somehow improve it by reducing her spending is cruel and absurd. But there are hundreds of millions of needless products and services that are produced, marketed, and ultimately purchased by tens of millions of Americans. As individuals, even in the face of the enormous pressures on each of us to perpetuate the cycle of overproduction and overconsumption, we each have the power to stop participating in this vast movement of capital, which only enriches the very corporations who oppress billions of our fellow humans. We may not be able to affect public policy at the top, where gargantuan corporate interests pull the strings [though we shouldn't stop trying], but at the middle-to-bottom of the U.S. economic pyramid all the power is in the hands, or rather, the wallets, of regular people. Corporations cannot thrive without our financial support.
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April 3, 2004
Cars
Unaffordable But Proliferating
[asfo_del]
It's understandable, given the reliance on driving
that is made almost inevitable by the U.S
infrastructure, that people here are upset about the
current high cost of gasoline. But some of the same
people who are horrified by the prices at the pump
seem to have no problem with the price tag of a new
car. In 1998, the average price of a new car was
$23,480. Yet 17 million new cars are
sold in the U.S. every year, and the average U.S.
household owns 1.7 cars. This in spite of the fact
that car ownership is financially devastating to the
average person in the U.S., who only makes $22,000 a
year. Owning a car is estimated to cost about $8000 a
year for a new car, and about half of that for a used
car. Although the great majority of American adults
own a car, about half of them cannot reasonably
afford one without cutting down on necessities or
sinking into debt.
"Owning two or more
cars doesn’t just
leave families with higher expenses; it can cost a
family the opportunity to own a home. The average
family spends about 18 percent of household income on
transportation, and many households in the [Southern
California] region spend close to a quarter of their
total income—more than on food, healthcare or
clothing." How has driving a car become a higher
priority than food or medical care?
Of course, this untenable situation has been
intentionally created by the oil and automobile
industries, who have the power to create public
policy. But there are also the millions of us who
choose to participate in our own oppression by
overconsuming, and not just on cars, which turns over
our money to the very companies that are making our
lives unlivable and leaves us as individuals
impoverished.
Our culture, which is largely, if not entirely, shaped
by a media that is supported through the money spent
by regular people on the products it is paid to
advertise, is deeply steeped in the notion that owning
things, especially flashy, expensive ones, is a source
of pride and well-being. Therefore paying for gas is
highly irritating, but paying for a gleaming,
well-engineered machine is masterful and
rewarding.
The counter argument is a difficult one to make,
however. Walking or riding a bike in the snow, or in
ninety degree heat, is a test of endurance. Young
mothers who struggle to carry strollers and small
children onto a city bus would much rather be able to
afford a car, I'm sure. Billions of people throughout
the world have to walk for miles, in all weather, or
ride unsafe, decrepit, and extremely overcrowded buses
and trains. Who are we to tell them that they
shouldn't aspire to own a car? The answer should be to
improve public transit and create communities where
walking and biking are convenient, of course, but that
is not where the profits of powerful corporations lie.
Car ownership is climbing worldwide, in spite of what
are arguably already unsustainable levels, and it is,
not surprisingly, touted as a sign of
progress.
In China the number of cars has been doubling every five
years for the past 30 years.
"China's car ownership in 2003-2010 is expected to
show a growth rate of 16%-20%. The number of cars
owned by the Chinese in 2010 would reach 66.5 million
to 84.31 million. It is therefore hopeful that China
would emerge as one of the world's most robust and
largest-scale automobile markets in the first decade
of the 21st century."
"The
number of motor vehicles worldwide could grow from 580 million in
1990 to 816 million by 2010. The average for OECD
countries, excluding the United States, is 366 cars
per 1,000 residents. In the developing world, car
ownership rates are ranging in 1993 from an average of
about 68 cars per 1,000 residents in Latin America and
the Caribbean to 29 cars per 1,000 residents in East
Asia and the Pacific, to about 14 cars per 1,000
residents in Africa."
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