The Dead End Road of Conspicuous Consumption (Part 1)

Like most of the subjects I cover at Bouncing Back, I have very strong and heartfelt feelings regarding the management of money and personal finances. For many people, the single biggest disaster they will face in their life will be related to money. This might include filing for personal bankruptcy or losing a home through foreclosure. In some cases, such serious financial problems can be brought on by situations beyond their control, such as an illness or death in the family. However, in many other cases, these devastating events may result from someone's poor judgment or lack of self-control. In such cases, should we see these people as deserving of their financial punishments? Or, should we look a little deeper to learn how this might have happened to the best of us? Upon closer examination, we may be surprised to learn that society and its daily messages often push us relentlessly toward spending more and more money.



To understand the set-up behind this situation, we must examine the goal of advertising and marketing in our society. Marketing professionals have long understood that humans act for one of only two primary reasons -- either to increase pleasure or to reduce pain. Therefore, all marketing promotions are aimed at manipulating our perception and making us believe that we will feel greater pleasure or less pain if we buy just this one more product or service. And, after 50 years of studying human behavior, they are very good at pushing these buttons in all of us.

Today, I want to specifically address the concept of conspicuous consumption. This economic theory was published in the early 20th century. It theorized that the primary motivating value behind certain purchases was simply to impress others with our wealth and success. For example, when we see a Jaguar sports car, we assume that the driver is very successful and wealthy. The theory of conspicuous consumption states that our tendency to perceive the driver as wealthy and successful was the primary motivation for the driver to purchase the car! The driver wanted to feel the pleasure of knowing that others saw him as successful and wealthy.

In the beginning of the 21st century, I believe that our societal values have shifted slightly away from the original theory of conspicuous consumption. Now, instead of wanting to know that others see us as special, we use material goods to prove to ourselves that we are special. The focus has shifted from others' perception of our worthiness to our own perception of our worthiness.

Let me explain this concept more clearly with an example from one of my favorite authors, Ayn Rand. Ayn Rand wrote the classic novels Atlas Shrugged and The Fountainhead, among others. In addition to being an author, Ayn Rand was a philosopher who developed the body of philosophy known as Objectivism. While I'll probably write more about Ayn Rand in the future since she has been a huge influence in the development of my value system, today I want to focus on a small lesson from one of her novels.

In the book, the main characters (a couple) are eating dinner out at a very expensive restaurant. There is candlelight, white tablecloths, waiters in tuxedos, and beautiful people in exquisite evening dress. As the main female character looks around her, she has the most astonishing thought (paraphrased - I haven't looked up the actual quote):

Look at all of these people. They think this place and this dinner will make them special. They think the symbols of success will define them as being successful. Why don't they know this is wrong? This dinner makes them no different than what they were before they arrived here tonight.

Can you see how this perspective is 100% backwards from how we've been taught to think about conspicuous consumption? We admire others who have designer handbags or expensive cars -- those who eat at the best restaurants and vacation at the trendiest destinations. We want to feel that way, too. And so we spend and spend, trying to capture that sense of being worthwhile in the world. But guess what... it never works. Purchasing fine things does not make us fine people. It simply makes us people with very large and unmanageable credit card balances!

In Part 2 of this entry, I'll continue this topic by examining the next step in the pattern of conspicuous consumption -- how we come to feel entitled to having all of the best things in life.