AMERICAN Consumerism
“American Consumerism is not only causing more debts, but it is also causing a sharp decrease in saving”. Due to the desire to get more materials things, the amount of money allocated for saving or in saving to be use in the near future will be diverted towards the purchase of latest and newest fashion design clothes, cars, best food etc. Most people today are not concern about the future or what tomorrow will look like in term of survival, but tend to prove some level of supremacy over others by showing off or bluffing, by consuming materials that cost more money showing to others that they are financially equipped. As such, the amount of money need to be saved will be used up. Jamie Bentley wrote “In 1973, the average amount of disposable income put into saving was 8.6%, in 1994 it was 4.2% by November 2005, it was negative 0.2%.” Firstly, improvement in technology which started from the industrial revolution plays a major role in the decrease in saving today because it help promote the rise in labor productivity motivating consumers to move into their personal saving to satisfy their desire, in some event, if the cash is not available for purchase, they prefer using their credit cards which will reduce their saving after a particular time frame. The personal income of consumers reduces every per day because the amount of credit scores by consumers on goods and services creates a situation they may be unable to save. Secondly, the total value of the good and services produced within the economy in an excess amount brings about increase in consumer’s credit. Human want are unlimited and the desire to get more materials increases day after day, which will lead to debts because the consumers want to purchase for family, friends and others. Therefore the increase in consumer credits relative to gross domestic product (GDP) will lead to sharp decrease in saving.