Consumerism, Economics and Trade
Introduction
When we think of all the things that play important roles in shaping the lives we live, purchasing is arguably one of the single biggest factors to take into consideration. Our roles in society are often greatly influenced by the money we earn and what we do with that money. The ways in which we choose to spend it, or not to spend it, on the goods and services available for us to buy, sell, and trade impact our lives in a broad variety of ways.
While these decisions impact our lives in direct and obvious ways, they also have direct and indirect consequences for the world around us ways that are not always so obvious. We may make a purchase in order to acquire something that we see as an immediate benefit to our own personal quality of life, while being unaware of the other impacts of what we are acquiring and how we are acquiring it. This decision very well could (and probably does) carry consequences that go beyond what we are taking into consideration.
How, where, when and under what conditions was this product created? What materials went into creating it? Where does the money we pay for it go? These are some of the questions you may want to ask yourself in order to understand more about the decisions we make, both as individuals and as societies, with our money and material goods.
Definitions and Context
All of what has been discussed here so far relates to trade, the voluntary exchange of goods and services, as well as economics, which can be generally defined as the study of the production, distribution, and consumption of goods and services.
Consumerism can be defined as people purchasing goods or consuming materials in excess of their basic needs. It can also relate to people equating their personal happiness with purchasing material possessions and consumption.
The broad consequences felt by people and things other than the consumer are most often felt when trade expands into consumerism.
Free Trade, Globalization, and Labour Issues
Free Trade is an economic concept involving the international trade of goods and services without taxes on imports or other trade barriers, as well as the free movement of labour and capital between countries.
Economic Globalization results from free trade and promotes the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services, free international capital flows, and more rapid and widespread diffusion of technology.
In practice, free trade and globalization allow for the exploitation
of labour laws in free trade agreements between countries and groups of
countries which allow workers and resources* in many countries to be abused
through various means including extremely low wages below liveable standards
and inhumane working conditions in order to produce goods cheaply and
quickly, so that profit can be maximized by companies despite any social
or environmental oppression* experienced as a result. In the western hemisphere,
the North American Free Trade Agreement (NAFTA) and the Free Trade Area
of the Americas (FTAA) are excellent examples of this.
*Please refer to the natural resources and oppression sections of this website for more information on these topics
Fair Trade
In response to the labour issues associated with international free trade, the Fair Trade movement emerged. Fair Trade is an organised social movement which promotes equitable standards for international labour, environmentalism, and social policy in areas related to the production of labelled and unlabelled goods, which may range from handcrafts to agricultural commodities. The movement focuses in particular on exports from developing countries to developed countries. It provides an alternative trading system of ethical goods enabling economic development and offering better trading conditions for producers and workers in developing countries.
Organic Agriculture and Food
Modern conventional agriculture can be very environmentally harmful. In order to increase the sustainability* of farming practices, organic agriculture has come into practice. Organic agriculture avoids or largely excludes the use of synthetic fertilizers and pesticides, plant growth regulators, and livestock feed additives. As far as possible organic farmers rely on crop rotation, crop residues, animal manures and mechanical cultivation to maintain soil productivity and tilth, to supply plant nutrients, and to control weeds, insects and other pests.
Similarly, organic food is produced according to organic standards, which means crops grown without the use of conventional pesticides, as well as artificial fertilizers or sewage sludge, animals reared without the routine use of antibiotics and without the use of growth hormones and food processed without ionizing radiation and without the use of a wide range of food additives. It is produced on all levels without the use of genetically modified organisms. Historically, these farms have been small family-run farms.[2] There is evidence that these organic farms are more sustainable and environmentally sound
* Please refer to the natural resources and
sustainability sections of this website for more information on these
topics