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Every year Americans grow more and more materialistic. We judge each other based on how much money we have, or by how much stuff we have. Who has the nicest house? Who has the better car? We have become these horrible consumers, continually taking advantage of what we have access to. We take technology for granted. We don’t appreciate things that we have now that our parents may have never had when they were growing up.
John Mayer Keynes views on consumerism say that this is a good thing. Keynes tells us about the good effects of consumerism on economies through his Treatise on Money, The General Theory, and his idea of the a Laissez-Faire system.
Keynes Treatise on Money, though it was never published because he tore it up, tells us all about the never ending tipping scale between savings and investment. He says that the never ending battle between savings or investment in the business cycle is critical to the economy, because consumerism is the best way to funnel money back into the economy, so that businesses can re-invest and expand, as well as save.Consumerism is the necessary key every country needs to have when they are in a bad economic state.
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An increase in consumerism helps put money back into the economy without the government’s hand having to get stuck back into the economy.
In The General Theory, Keynes speaks about the need for people to save their money as well as spend it.
He talks about the need to increase the pressure on businesses through more consumerism so that they must expand, therefore producing more jobs to help grow back the ailing economy. Most businesses in order to expand and grow will need to borrow money from the banks in the form of a loan. Thus putting the business cycle back in motion. Consumerism needs to keep moving and working in the economy to keep it moving.
Finally Keynes’s ideas of a laissez-faire system is brought into economics with relation to the government. Laissez-faire means hands off. Keynes states that in some situations with ailing economies governments need to step in and help out through tax cuts and lower interest rates. He says though that after an economy is up and running once again the government needs to remove itself from it. They need to back away and withdraw their fingers, because if the government is continually involving themselves in the economy then the economy suffers, as well as the government due to less funding because of tax cuts and lower interest rates. They need to somehow earn this money back.
People see materialism and consumerism as bad most of the time due to the fact we have begun to judge each other by how much stuff we have, but haven’t we always done this even if it was on a smaller scale. Yes, we have become horrible consumers, but is it truly all bad?John Mayer Keynes views on consumerism say that this is a good thing. Keynes tells us about the good effects of consumerism on economies through his Treatise on Money, The General Theory, and his idea of the a Laissez-Faire system.
John Mayer Keynes’ View on Consumerism and How it Affects Economies. (2024, Feb 02). Retrieved from https://studymoose.com/john-mayer-keynes-view-on-consumerism-and-how-it-affects-economies-essay
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