What Will the Great Pause Mean for Consumerism?
Now is the time to rethink how we spend our money
This is Part 3 of an essay series. Read Part 1 here.
Consumption is the ‘engine of the economy.’ Or so some say. This is because consumption drives an estimated 70% of GDP. Consumers consume food, medication, personal care products, makeup, cleaning products, home goods, clothing, gasoline — the list is endless.
The Oxford English Dictionary tells us,
“Consumer” comes from the Latin “consumere” — “to destroy, wear away, to kill, annul, extinguish, wear down, exhaust, to eat, devour, to take (a medicine), use up, expend, swallow up, merge, to spend (money, resources or time), waste, squander.”
By definition, Consumerism is rooted in the destruction and exhaustion of resources. But does it have to be this way? A ‘consumer’ is also a ‘customer’ of a bank, a ‘client’ of a lawyer, a ‘patient’ of a doctor, and a ‘user’ of a website. So many terms that we have created over the years to replace what we actually are, human beings. And human beings are emotional creatures. We have thoughts and feelings that drive our decisions and actions. So what if we stopped shopping, purchasing, leasing, and consuming for a moment? Or even for a few months, like during a pandemic. What would happen? Would physical retail stores go bankrupt and shudder? Would the travel industry come to a screeching halt? Would unemployment rates rise rapidly and drastically? Would foodbanks become overwhelmed? Would the global economy start to plummet?
As we are currently in the midst of exactly this scenario, we know the answer is a resounding, YES.
Consumerism, as we know it today, is on pause. The Great Pause, as many are calling it. And while consumerism slows, nearly to a halt, and our purchase decisions and spending habits change, we find ourselves in a moment where we can, and should, pause, reflect, and rethink not only how we spend our money, but how much money we spend. Why? To increase the actual joy in our lives, to reduce our carbon footprint, and to build our wealth, to name a few reasons.
Joy vs. Happiness
In his book, The Second Mountain: The Quest for a Moral Life, David Brooks talks about the difference between happiness and joy. He says that many people live in what he calls ‘The First Mountain.’ This is where a person is focused on the development and expansion of themselves, along with the accumulation of things. While happiness is great and can feel rewarding, he believes true, deep, and meaningful joy comes in The Second Mountain. This is when we are not focused on ourselves, rather focused on others. Giving and serving others become more meaningful, rewarding, and fulfilling than receiving or taking from others. When a person comes to this realization and move into The Second Mountain of their life, true fulfillment, and joy, begins.
Oprah recently commented during one of her Super Soul Conversations that we buy and accumulate things to show our status. However, what if we are ‘locked away in our rooms’ for an extended period of time, like during a pandemic, and no one else can see those things? It begs the question: does buying and owning material things truly increase or change our status at all?
More users, more usage, more benefits = more consumption. This is how a marketer grows a brand, thus growing revenue, thus growing profits. Our economy depends on consumers purchasing and consuming. Consumers get a hit of dopamine in their brains when we are either considering a new purchase or we have just bought something new. This is why we see the word ‘SALE’ while online and offline shopping nearly 365 days a year — the word itself has a neurological effect on our brains — as there is the double whammy of both acquiring something new (that we believe we have earned) while simultaneously “saving money” (the irony being that we have to spend some money to save some money that we may not have spent in the first place had we not seen the SALE sign). The thing with dopamine is that it only lasts for a moment in time, and then it goes away. Which is why there are so many ‘SALE junkies’ who constantly need to seek out the next SALE and great find, to keep those dopamine hits coming. Retailers love, and rely on these shoppers to sell their products at a rapid rate. The commonly used expression, “Money can’t buy you happiness,” should technically be “Money can’t buy you joy.” Money can buy you an item that is on SALE, which in turn provides you with a hit of dopamine, which can positively affect your mood for a moment. Thus, a moment of happiness. But it eventually, and most certainly, goes away. And it most definitely does not bring you a lifetime of joy.
Ethical consumerism
What has become clear to many of us over recent decades and years is the significant and catastrophic impact that our consumeristic behaviors and society have on our planet. It doesn’t take a scientist to be able to simply look around at our land, water, and air and figure out that the Earth is not healthy. Our mindset, habits, and behaviors need to change, and quickly. What has been very interesting during The Great Pause is the impact that the drastic slowing and reduction of global consumerism has had on the planet. Our air is cleaner, our waters are clearer, we are polluting less; even the daytime blue sky is more vibrant.
Reducing our carbon footprint is not easy. Particularly when we are consumers who are trained to want, want, want. The reality is that as humans, we do need to consume. We need to consume food and drink to survive. We need to buy clothing to wear. We need to furnish our homes to make them functional to live in. Knowing this, how can we help affect positive change in the world? Unfortunately, the purchasing power of one single consumer will not impact much. However, the purchasing power of billions of people collectively can, and will, have a significant impact.
Ethical consumerism is the decision to use the power of our wallet/purse to make purchases that we know have a more sustainable and positive impact on the Earth. Some say this is a political decision. Others say it just makes good sense. We have seen a wave of this in recent decades, with the Millennial generation being known for wanting to support brands and invest in companies that align with their own values. CEOs around the world have come to realize that having a position, policies, and actions around Corporate Social Responsibility (CSR) is not only the right thing to do, it is one of the most critical strategic pillars to keeping their businesses operating well and growing. This is why we have seen such incredible unrest within Amazon in the past couple of years, with Amazon Employees forming Amazon Employees for Climate Justice, taking Jeff Bezos to task for his lack of leadership and action in CSR, particularly when it comes to Amazon’s environmental impact. Fortunately, and finally, Jeff Bezos put a stake in the ground with his announcement of the creation of the ‘Bezos Earth Fund’ earlier this year. The announcement has come with mixed reviews, with many questioning how exactly the fund will be managed, and others criticizing the fact that he just had to slap his own name on it to feed his already large ego. Regardless of the varying views on his action, the point is that the action of the collective can force progress to be made. Sometimes it might take a little pressure, or in this case, a lot.
Building wealth
One of the biggest benefits of consuming less, thus spending less, is the ability to save and invest more for your future. The concept of building wealth is something that most of us do not prioritize until later in life. Unfortunately for many people, the act of saving for retirement comes later than what most Financial Advisors recommend, and therefore there is an inevitable ‘catching up’ that happens in the decades closer to retirement years. This is not the end of the world, however, the smarter we are about how we manage our finances, the easier it is and the more prepared we are to retire comfortably when the time comes. In order to do this, we need to increase our FiQ. FiQ, or Financial Intelligence Quotient, is how well we understand and manage our wealth by understanding how money works. FiQ is referred to using other acronyms, including FQ (Financial Quotient) and FI (Financial Intelligence). Whatever you personally want to call it, the gist of the concept is to get smarter about money. To do this, we need to read books and articles, watch videos, take courses, and seek out expert advice about different aspects of money management and wealth-building. The unfortunate news for those who like to spend money? Frugality is a critical aspect of wealth building. If we desire to be wealthier, we need to be able to be critical of when, how, and why we spend the money we earn. Of course, if we can find a way to both save more, and earn more, we’re even more ahead.
As consumers, we are well-trained spenders of our money. We tend to: 1. Spend, 2. Save, 3. Invest, in that order. But we have it backward. We should actually: 1. Invest, 2. Save, 3. Spend. If we want to build wealth and have wealth, spending will not get us there. We will be a lot further ahead financially if we invest as much of our income as we can, save for emergencies, and spend only what we need to spend on the things we actually need. There is actually a fourth component to what we should be doing with our money — Give. A pandemic reminds us of just how many people in the world are in need. Giving money to charities and to those in need is a fantastic way to help those who are less fortunate get one step closer to getting back on their feet. Not to mention the joy we personally feel when we give to others.
I am a recovered shopaholic. There is a huge difference between how I feel now versus when I was younger, swiping my credit card to pay for things that I had thought I had earned with money I did not have. I now feel far more in control of my finances, my money, my life, and my future. Of course, I still enjoy shopping, however, I shop less often now. I have recently set an intention around my own buying habits which is to buy less low-quality things that I want and buy more high-quality things that I actually need. My definition of low-quality is something that will not wear and tear well over time. Therefore, I will have to dispose of it rather quickly, perhaps after one season of use. An item that is high-quality is something that I will keep for several years to come. Not only that, but it is also an item that actually brings me continued joy, rather than just a moment of happiness. Distinguishing between want and need is an important exercise as it pertains to our consuming, to help determine what will bring you a moment of happiness versus longer-term joy.
So, next time you are out shopping, ask yourself, what items do I want, and what items do I need? Make an effort to buy fewer low-quality things that you simply want, and more high-quality things you actually need that you will keep for a long time. Make a conscious decision to support brands and businesses that do good in the world and give back to the environment and communities in which they operate. With the money that you are not spending on buying new things all the time, either save it, invest it, or give it to someone in need. If you’re someone who loves to shop, this may not sound like fun at first. However, after some time of watching your savings and investments grow, and having more ability to help others in need, the longterm joy this brings to your life will outweigh the short-term happiness a new pair of shoes brings. Guaranteed.
This is Part 3 of an essay series. Read Part 1 here.
