The twisted psychology of capitalism—and why it won’t hold sway forever


In case you hearken to economists discuss concerning the world proper now, you’d be forgiven for feeling a bit confused. The pandemic precipitated the worst recession for the reason that inventory market crash of 1929. Now, we’re advised, the U.S. and China may very well be heading for the quickest restoration on file. However it’s set to be uneven—a “story of two recoveries,” in accordance with the World Financial institution. The greatest of instances for the wealthy. The worst of instances for the poor. Identical as it ever was.

What does this all imply as we emerge from lockdown and look towards the even larger challenges that lie forward—local weather change, the devastating loss of nature, and the social inequality that also haunts society?

The pursuit of GDP progress has been the holy grail of capitalism for the reason that Second World Warfare. However its relevance to the standard of our lives has at all times been a bit sketchy. Shortly earlier than the U.Okay. took its fateful Brexit vote in 2016, a authorities adviser got here to a city assembly to steer folks to vote “stay” as a result of of the impression leaving the European Union might have on the nation’s GDP. “That’s your bloody GDP!” shouted a girl within the viewers. “It’s not ours!”

For the final half century, our obsession with progress has by no means persistently benefited everybody. Very often, it was the wealthy who benefited most. And because the economic system grew and grew, the impression on the planet has been nothing brief of devastating. It’s tempting to surprise, because the restoration takes form, whether or not this time we’d goal for one thing higher. However to get there, we might first need to be taught some harsh classes from historical past.


The manufacture of want

The crash of 1929, which precipitated the Nice Despair, has been referred to as with some accuracy a “disaster of overproduction.” Technological innovation had generated large will increase in productiveness. Our capacity to provide had outstripped our want for the product. Provide was plentiful however demand was inadequate. Costs fell, confidence plummeted, funding slowed, unemployment soared, and it took a decade and a half (and the navy expenditure of WWII) to get the worldwide economic system again on monitor.

We would at that time have mirrored extra deeply on what it is that people really want and the way greatest to ship it. We would have appeared extra critically at our obsession with productiveness, for the sake of productiveness. However as a substitute, capitalism responded to that disaster by stimulating want. By no means once more ought to we undergo from inadequate demand. Alongside got here an entire new business designed to fabricate not merchandise however want. To stimulate the demand that capitalism wanted to take care of the engine of progress.

To additional this trigger, the “Madmen” of the postwar years drew on a imaginative and prescient of humanity that solid us all as stressed, insatiable shoppers. Their latter-day mimics pursue our each transfer with algorithm-driven advertising and marketing, promising unmatched happiness—as long as we proceed to buy. Was it our creativeness? Or did lockdown carry a step-change in our on-line publicity to on the spot gratification? We all know it isn’t actual. However the lure is irresistible. Like children within the sweet store, we’re frequently persuaded to spend cash we don’t have on issues we don’t want—to create impressions that received’t final on folks we don’t love. Within the meantime, the poor nonetheless undergo. And the planet reels from our indulgences.

The promise of heaven

There’s a paradox right here acquainted to us all. “Put up-purchase dissonance” is an expression that psychologists use to explain the frustration we generally really feel upon realizing that our newest buy doesn’t fulfill its promise. At first sight, it’s only a curious anomaly. On deeper reflection, it seems to be the structural foundation for the success of consumerism. Postwar capitalism trades not on happiness however on unhappiness. The engine of client society is discontent.

That is greater than only a rhetorical declare. Let’s take consumerism’s extra ostentatious charms: the glitter and bling, the infinite parade of new and thrilling merchandise that retains us procuring. Novelty lies on the beating coronary heart of capitalism. Innovation is important to enterprise. Austrian economist Joseph Schumpeter referred to as it artistic destruction: the continuous throwing over of the outdated in favor of the brand new; the relentless search of the entrepreneur for brand spanking new markets and new merchandise to fill them with. These are the rewards that innovation can carry.


i 1 90650835 the glittering prize and8211 life after capitalism
[Illustration: CSA Images/Getty Images]

However for this to work, novelty should occupy a pivotal place within the human coronary heart. The entrepreneurs have to steer us simply how a lot we love new stuff. Admittedly, they’re pushing on an open door. There’s, of course, a real want for novelty within the human psyche. Conspicuous consumption signifies standing and energy. However novelty additionally alerts hope. It holds out the promise of a brighter and shinier world for us and for our youngsters. Consumerism thrives on this promise. The job of advertisers is to make sure that we always remember it.

Consumerism’s most glittering prize is the promise of immortality itself: an earthly paradise of by no means wanting, by no means needing, by no means missing for something creativeness can dream of. “The human animal is a beast that dies. And if he’s obtained cash, he buys and buys and buys,” says Large Daddy in Tennessee Williams’s play Cat on a Sizzling Tin Roof. “And I feel the explanation he buys all the things he can is that within the again of his thoughts is the loopy hope that one of his purchases will probably be life eternal.” Out of the blue, we discover ourselves within the grip of a robust social logic. Financial construction on the one hand and human psyche on the opposite bind us into an “iron cage” of consumerism.

Buying and selling on disgrace

The first crack within the shiny floor seems with the conclusion that the system itself is rooted in anxiousness. The economist Adam Smith referred to as this the need to dwell “a life with out disgrace.” Disgrace magnifies client wants. Advertisers know this solely too effectively. They play on the ability of misplaced disgrace. “What does your automotive (home, vacation, laptop computer, rest room roll . . .) say about you?” they ask, in ever extra beguiling methods.

In Smith’s day, a comparatively modest set of items might stave off social disgrace. He talked concerning the want for a easy linen shirt, “the need of which might be speculated to denote that disgraceful diploma of poverty, which, it is presumed, no person can effectively fall into with out excessive unhealthy conduct.” These days, the must-have basket of vital items has expanded massively, as certainly it has to do for the system to proceed to work. Quick vehicles, quick meals, quick intercourse, quick trend. If we ever cease coveting the fruits of want, the economic system begins to fail. Unemployment rises. Instability beckons.

And that is exactly why anxiousness should tip over into outright dissatisfaction if capitalism is to outlive. Consumerism should promise paradise. However it should systematically fail to ship it. It should fail us, not often, as psychologists counsel, however repeatedly. Endlessly invoking want. Relentlessly delivering disillusion. The success of client society lies not in assembly our wants however in its spectacular capacity to repeatedly disappoint us.

Restoration for realists

This might sound at first like a darkish and hopeless conclusion. I don’t imagine it is. It’s a necessary recognition that consumerism is, and at all times was, a social assemble. A vital aspect in a narrative that’s no extra actual than the tooth fairy. A whimsical however unfulfilling dream offered to us by the architects of want in an effort to perpetuate the engine of progress. A historic cul-de-sac that has led us perilously near catastrophe. However these classes should save us.

i 2 90650835 the glittering prize and8211 life after capitalism
[Image: Polity Books]

“Historical past, regardless of its wrenching ache, can’t be unlived,” wrote Maya Angelou. “But when confronted with braveness, needn’t be lived once more.” As we stumble warily out of lockdown, trying to find restoration and struggling to make sense of the economists’ complicated prognostications, we might do effectively to heed the teachings realized, not simply by means of this pandemic, however from earlier crises and from earlier recoveries.

Hitching our wagons as soon as once more to the parable of everlasting progress is a surefire recipe for catastrophe. Consumerism degrades the atmosphere. It divides us from one another. In the end, it undermines the happiness it guarantees to ship. However to acknowledge this failing is to loosen the chains that bind us to a dysfunctional jail of our personal making. From right here we will start to grasp each why consumerism should finally fall, and how one can change it.

Excerpted and tailored from Put up Development: Life After Capitalism (Polity Books, 2021), by Tim Jackson.