¶ … exist two polarizing concepts that define the nature of economic life. These two opposing views, consumption and production, have formed the basis for debate for social scientists throughout the twentieth century and, as the world enters the second decade of the twenty-first century, the debate continues (Butler, 2001). The debate centers on how each of these views affects the economy and which plays a more important role in driving the economy.
The two viewpoints in question arose during different historical periods. The production theory dominated economic thought in the 19th century as the world was entering the industrial age. The theory was that through increased production man's need and desire for wealth would be satisfied. For proponents of the production approach to economics, consumption was not a concern.
The consumption approach to economics developed in the twentieth century and has dominated economic thought to the present day (McCracken, 1987). From the consumption point-of-view, the driving force behind economics is the desire to consume. The emphasis is on how to increase consumption and not on how to increase production.
Although production and consumption began as economic approaches they have been incorporated into the other social sciences as well. Sociologically, consumption has become an important concept as experts in the field examine how economic decisions are made by members of society. For most members of society, purchasing and other behaviors are influenced by many factors but it cannot be denied that peer pressure and the media are part of it and that advertising is at the core of all of it.
Prior to the twentieth century, consumption was considered to be the result of need and the ability of manufacturers to produce what was needed. As the twentieth century progressed, however, manufacturers were capable of producing at a level where basic needs were...
Manufacturers suddenly found themselves with surplus products and a need to find new markets and consumers. Through the effective use of advertising, the markets and needs were created and consumption became more important than production (Pollay, 1986).
The twentieth century witnessed the era of materialism. Consumers no longer made decisions based on rational choices. Material accumulation began to take on a symbolic value and the functional value of goods became less important. This is not to say that satisfying basic needs was an unimportant aspect of the economy. A substantial portion of a nation's economy must still be dedicated to satisfying these basic needs but in order to keep consumption consistent with production manufacturers must be able to convince consumers that their needs are greater than they once were. They must convince consumers that they need more cars, more clothes, more appliances, etc. These additional product purchases are the result of false needs created through advertising and marketing.
The advertising industry, particularly since the end of the Second World War, has promoted this atmosphere of consumption (Rucker, 2008). The industry has created perceived needs where consumers are manipulated to believe that they must have certain products and that the failure to procure such products created dissatisfaction among consumers. For example, the advertising industry has convinced consumers that they must have a full range of personal hygiene products such as mouthwash, toothpaste, hairspray, shampoo and conditioner in order to be both healthy and well-groomed. Lacking such products creates insecurity among consumers and a sense of being inadequate or unsuccessful.
This push for more and more consumption began slowly but as time has gone on the advertising industry has successfully moved the bar higher and the definition of what the average consumer…
