Consumerism

I recently read a great book called "2052 - A global forecast for the next 40 years" by Professor Jorgen Randers. He argues that current human lifestyle requires the support of 1.4 planets; humanity has overshot its use of planetary resources. He makes the point that it will be physically impossible to lift the material standard of living of all nations to that of current West. For example, there is not enough raw material, fuel, and space available for everyone to have their own car thus putting a limit to consumerism. The image below shows a comparison of GDP and consumption across different countries:

Increasing volumes to increase product consumption is what gives rise to profit levels. This increased consumption is because of businesses selling huge volumes and creating a highly bloated pool of consumer needs. This increased consumption is leading to environmental degradation and breaching limits of nature.

Businesses are seen to create profit at the cost of community rather than the profits benefiting the community. Increasing consumption and focusing on profits alone can alienate business from the community. But, creating economic value alone may lead to community (customers and people who are highly important stakeholders in the business) slowly losing faith in the business model. The solution therefore is to focus on a shared value between community and business - called the "right way" of creating economic value.

I've completely "bought" into the idea that consumerism is hurting us. I have reduced the stuff I unnecessarily buy and throw away. That's one person contributing less to the ill-defined "economic value creation" process!

Ref: http://www.2052.info/