For Wed. Feb 25: (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
Post your responses to at least one of the following questions before 2/25.
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?”
Post a response to at least one of the following questions before Feb. 25.
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. WEF_ConsumptionDilemma_SustainableGrowth_Report_2011 (for Wed, read pages 13 – 17 of article)
Please focus particularly on pages 13 – 17 – “Consumers: Changing the Terms of Engagement”) for this class which will feature guest lecturer Prof. Pa Her, Professor of Psychology, followed by discussion.
IV. Reminder: submit final draft of research topic in the form of a question or argument you wish to make; think about where you may want to conduct field research for your topic. (list of some ideas is posted under ‘Research topic ideas’ menu.
V. Guest Lecturer: Prof. Pa Her (Psychology)
#William Article Q-1
Some of the reasons that William discuses in his article as why American consumer may not be able to serve as the engine of economic growth that they did in the prosperous post-war era are during last decade, inflation-adjusted personal consumption expenditures grew at a continuously compounded annual rate was higher than GDP. Furthermore, he mentions, consisting of investment, government purchases of goods and services, and net exports grew really slow (1.70 percent). He also mentions that how important consumer spending is, but in recent decades the share of consumer spending in GDP was relatively high already before it began to increase substantially further during the those decade.
#William Article Q-2
The problem Emmons see with “as consumer spending grew rapidly in the U.S., we imported consumer-oriented goods and services even more rapidly” is that U.S. imports contribute highly to grow in many exporting countries around the world. Therefore U.S. consumers aid as the locomotive not only for the U.S. economy but for the global economy. William mentions, since we incurred large trade deficits, we required a corresponding inflow of foreign capital to finance them. Furthermore he mentions three facets of U.S. and global economic growth which are high-spending and low saving American consumers, large U.S. trade deficits, and substantial inflows of foreign capital—are important contributors to the so-called “global imbalances” long noted by international economists and policymakers.
# William Article Q-3
From 2001 to 2010, differences between U.S and Canada in the percent share of the components of GDP between the two nations are substantial. During that time U.S consumer expenditures are higher than Canada by 13.6 percent, investment was lower than Canada by 2.8 percent, net exports was less than Canada by 6.9 percent and government expenditures was also lower the Canada by 3.9 percent.
#William Article Q-4
Emmons’ five trends working against consumer spending are Lower wealth, stagnant income, Tight credit, Fragile confidence and Looming reversal of stimulus.
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)
According to Emmons, the reason for Americans not being able to serve as the engine for economic growth as they did before is due to new sources of demand in both domestic and foreign markets; this is due to consumer spending being the primary contributor to our economy.
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?
I do absolutely believe in the narrators opening remark. The anxiety here is that we as consumers are insatiable in our desire for new products that often times become over produced and thrown out for newer products before the previous products lifespan is used up. Should this trend continue, our natural resources will become further depleted.
Q1 Article
He cites powerful trends as, more investment, more government spending, and more exports that can not increase quickly.
Q5.
*Lower wealth
*Stagnant incomes
*Tight Credit
*Fragile confidence
*Looming reversal of stimulus.
Part 1 (William R. Emmons Article):
Question 1:
As Emmons suggests that American consumers may not be able to serve as the engine of economic growth as they did in the prosperous post-war era, he cited that consumer spending makes up the largest part of the economy. More replacements meaning more investment, more government spending or more exports. New demands from both domestic and foreign thats if we want to grow with a healthy manner with rates. In any case none of them can be increased rapidly or might create unwanted consequences of their own. Those are the reasons Emmons cites for American consumers not being able to serve as the engine of economic growth as it did in the past post-war era.
Part 2 (Movie):
Question 2:
The film 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. I agree that the society does “chase status”. Chasing status is basically going with the flow, going with what everyone is doing, what’s in style or really popular to do. Many people in society chases that to be on top of everything, often forgetting who they are and who truly care about them. I’ve seen this happen so many times in society, especially in high school it’s very common.
The 5 trends that work against consumer spendign in the Emmons article are Lower wealth, stagnant income, Tight credit, Fragile confidence and Looming reversal of stimulus.
Film discussion “Consumed: Is Our Consumer Culture Leading Us to Disaster
1. Well, indeed I think consumerism could lead to environmental disaster since that the power of consumer to obtain a product that they consider necessary is such strong that the market is going to try any way to produce it without care the consequences to long or short term. what it really matter is to create a product that consumers think is absolutely necessary to live.
2. It makes a lot sense because lately society is concerning about media and other superficial stuff that thanks to technology is being increasing more and more over what is really important as family. As example, we can take the relationship people have. Now you can see a group of friends all together trying to have good time, but none of them is talking to each other. They are texting, or checking their cellphones.
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)
On page 3, William Emmons identifies five trends working against consumer spending: lower wealth, stagnant incomes, tight credit, fragile confidence, looming reversal of stimulus. Also he points that: “combined, these contractionary forces make the outlook for broad-based consumer spending growth challenging”. Therefore, American consumers may not be able to serve as the engine of economic growth that they did in the prosperous post-war era.
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?
I agree with that. Population grows, cities grow. As a result, we consume more food, more water, more energy, and we need more goods. Furthermore, we contaminate water, air and soil, we cut trees and burn fossil fuel. It causes climate changes: global warming, see level rise, increase of weather disasters and so on. Therefore, if we still are focused on consumerism, the theory that an increasing consumption of goods is economically desirable, it will lead to environmental disaster. In my opinion, we must focus not only on economic aspects, but also on ecological and socials aspects. It is the way to avoid environmental disaster.
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
Film Q-1
I do agree with this perspective, since we have only finite amount of resources available to us. Using those resources negligently will seriously damage our environment. Unusual increase in demand will encourage people to ignore the environmental value and focused on profit.
Film Q-2
I also agree with the film that consumerism often means that we “Chase status”. As human being, we never want be left along. We always want to be part of the trend. We do not want to be look down. It is very visible in our dress and products that we use. It seems like we have to have the new iPhone or use fancy clothes even if we don’t need it.