For Wed. Feb 18: (1)Discussion questions to prepare for viewing film “Consumed” and (2) discussion questions from assigned reading, William Emmons, “Don’t Expect Consumer Spending to be the Engine of Economic Growth it Once Was.”
I. Read William Emmons, “Don’t Expect Consumer Spending to be the Engine of Economic Growth it Once Was.” Dont Expect Consumer_Spending
Be prepared to discuss the following questions from the assigned reading: Post your responses to at least one of the following questions before 2/18.
1. William Emmons suggests that American consumers may not be able to serve as the engine of economic growth that they did in the prosperous post-war era. What reasons does he cite for this? (paragraph 1)
2. Emmons notes in the last paragraph on page 1 that “as consumer spending grew rapidly in the U.S., we imported consumer-oriented goods and services even more rapidly.” What problem does Emmons see with this trend?
3. Take a look at the table on pg. 2 that compares the composition of GDP in the U.S. and Canada over time. Looking at the most recent period from 2001 – 2010, what differences do you notice in the percent share of the components of GDP between the two nations (Consumption, Investment, Net exports, Government expenditures)?
4. Emmons identifies five trends working against consumer spending on pg.3. What are these?
II. Questions for discussion of the film, “Consumed: Is Our Consumer Culture Leading Us to Disaster?”
1) Link to film “Consumed” https://www.youtube.com/watch?v=bOKl04TWVsU
After having viewed the film in class, please be prepared to discuss the following questions in class on Wed. Feb. 18.
1. In the film’s opening remarks, the narrator suggests that our focus on consumerism could lead to environmental disaster. What are your thoughts on this perspective?
2. The film also suggests that in human society, consumerism often means that we “chase status,” often deriving little real satisfaction from this behavior, and that human relationships become secondary. Would you agree/disagree with this argument? Why?
3. Is runaway consumerism a “temporary” stage? Would you agree that “Once people understand their own psychology they will care less about consumption?” Discuss
4. It is argued that consumerism is tied to a “natural human urge,” a way of “structuring human life.” Is consumption a “natural” behavior? Or is it conditioned?
5. The film makes the argument that economic growth, driven by consumer spending, has “become fetishized.” We earn more money, have more choices, then spend more money. What does the commentator mean when stating that consumer spending has become ‘fetishized’?
6. It is argued that we often “display our mental traits through the goods and services we buy and turn them into props,” using them as a way of signaling prestige or a way of attracting others. Your reactions to this view? Would you agree? Disagree? with this perspective? Explain reasoning.
7. It is suggested that in order to promote more environmentally conscious consumption, we need to understand how to psychologically influence changes in behavior. Would you agree? Disagree?
8. In the film’s opening remarks, the narrator suggests that our focus on consumerism could lead to environmental disaster. What are your thoughts on this perspective?
III. Submit one or two top choices for research project in form of a question or argument; think about where you may want to conduct field research for your topic. (list of some ideas is posted under ‘Research topic ideas’ menu.
The five trends that Emmons identifies as working against consumer spending are as follows:
1. Lower Wealth
2. Stagnant incomes
3. Tight credit
4. Fragile confidence
5. Looming reversal of stimulus
4). Emmons identifies five trends working against consumer spending on pg.3. What are these? Lower Wealth, Stagnant incomes, Tight credit, Fragile confidence, Looming Reversal of Stimulus
The reason that he cites this is because in the past the money was kept in the American economy. The economy depends on the money spent by consumers. Emmons states that right now the best way to pick up the economy would be from domestic and international consumers.
Rooftop Gardens Topic
OK – If you have not already submitted a specific question or focus for this topic, please bring this to the next class. If you have any questions or want to discuss ideas, you can email and I can add some suggestions for focus.
Answer to Q1: More business investment, government spending and more exports will not be able to increase fast enough or could lead to overpass consumer spending, which constitutes the largest part of the economy.
Answer to Q2:
US had a 70% consumer expenditures of the GDP in comparison of Canada’s 56.4%
US investment was lower by almost 3% in comparison to Canada
US net exports were -4.5% for the 10 years and close to 7% lower than Canada
US government expenditures were close to 4% lower than Canada
Overall US was lacking in 3 out of 4 sectors to Canada, only showing bigger Consumer expenditures.
Francisco Diaz
Prof. S. Macdonald
Econ 2505
3. Take a look at the table on pg. 2 that compares the composition of GDP in the U.S. and Canada over time. Looking at the most recent period from 2001 – 2010, what differences do you notice in the percent share of the components of GDP between the two nations (Consumption, Investment, Net exports, Government expenditures)?
Looking at the most recent period from 2001-2010, there are a few differences in the percent share of the components of GDP between the two nations. There was more consumer expenditures in the United States than it was in Canada during 2001-2010. The differences U.S minus Canada in consumer expenditures was 13.6 percent. But on the other hand; there was more investments in Canada than it was in the United States during 2001-2010. The differences in investments was -2.8. Canada had a larger amount of net exports than the U.S and the differences was -6.9. Canada was doing better than U.S in term of exporting; which could lead to economic growth rapidly. It also could lead to prosperity and stability. During these eras Canada had a lager government expenditures than the United States. The differences was -3.9.
Francisco Diaz
Prof. S. Macdonald
Econ 2505
3. Take a look at the table on pg. 2 that compares the composition of GDP in the U.S. and Canada over time. Looking at the most recent period from 2001 – 2010, what differences do you notice in the percent share of the components of GDP between the two nations (Consumption, Investment, Net exports, Government expenditures)?
Looking at the most recent period from 2001-2010, there are a few differences in the percent share of the components of GDP between the two nations. There was more consumer expenditures in the United States than it was in Canada during 2001-2010. The differences U.S minus Canada in consumer expenditures was 13.6 percent. But on the other hand; there was more investments in Canada than it was in the United States during 2001-2010. The differences in investments was -2.8. Canada had a larger amount of net exports than the U.S and the differences was -6.9. Canada was doing better than U.S in term of exporting; which could lead to economic growth rapidly. It also could lead to prosperity and stability. During these eras Canada had a lager government expenditures than the United States. The differences was -3.9.
1. The primary reason why American consumers may not be able to serve as the engine of economic growth is due to the consumer spending which may “crowd out” investment spending. As Emmons explained, this is a major determinant of long-term growth. He said “The higher investment spending has been associated with high economic growth, while high consumer spending has been associated with low economic growth”. As a result, the U.S. economy incurred large trade deficits, high spending and low saving American consumers and sustained inflows of foreign capital.
2. The problem that Emmons see with consumer spending that grew rapidly in the US along with the increase in consumer-oriented goods and services imports led to even more consumer spending. He stated that the standard economic growth must continuously invest in new capital goods and structures in order to grow, become more productive and raise citizens’ living standards overtime.
4. The five different trends behind the slow growth of the economy in relation to consumer spending; Lower wealth, Stagnant incomes, Tight credit, Fragile confidence, and Looming reversal of stimulus.
Q1. William Emmons suggests that American consumers may not be able to serve as the engine of economic growth that they did in the prosperous post-war era. What reasons does he cite for this? (paragraph 1)
A1. He means because of the war, as a consequence it wont be export/import which help drive the economic ,if consumer wont be able to buy goods, as a result recession can began.
youssouf diallo
Emmons identifies five threats as working against consumer spending are as follows:
1. Lower Wealth
2. Stagnant incomes
3. Tight credit
4. Fragile confidence
5. Looming reversal of stimulus
Q1. What Emmons cited as the reasons for American consumers not being able to serve as the engine of economic growth as they did in the post-war era from paragraph one was that the replacements for consumer spending which were : increased investments, government spending or more exports could not be increased rapidly or he said also that they could have unwanted consequences.
Q4. Emmons identifies five threats currently evident that are working against consumer spending as: Lower wealth, Stagnant incomes, Tight credit, Fragile confidence and Looming reversal of stimulus.