Lesson 20 — Activity 2: The Impact of Consumerism on the Economy
Completion requirements
Lesson 20 — Activity 2:
The Impact of Consumerism on the
Economy
Warm Up
When we buy goods and services, we become consumers. Consumerism influences the economy. In this lesson, you will learn about the impact of
consumerism
on the Canadian
economy.
@pexels
A country's economy is
its wealth and resources, especially in terms of the production and
consumption of goods and services. Economies supply the goods and
services that satisfy a society's needs and wants. As a consumer, you
are a very important member of the country's economy.
A country's economy is its wealth and resources, especially in terms of the production and consumption of goods and services. Economies supply the goods and services that satisfy a society's needs and wants. As a consumer, you are a very important member of the country's economy.
@creativecommons
Consumerism is
important to the economies of Canada and the United States. Every
time a
consumer buys a good or a service, an investment is made in the
country's economy. The more goods produced and consumed by
society, the higher the growth rate of the economy. The economy is
considered to be "doing well" if the purchasing power of the people is
high.
Let's take a look at the the impact of consumerism on the economy.
Let's take a look at the the impact of consumerism on the economy.
The more people buy, the better it is for the economy. The economy depends on people buying stuff. If people only bought the absolute necessities, most of the country would be unemployed and unable to make enough money to buy those absolute necessities.
@publicdomain
The growth of demand for consumer goods also encourages investors to put their money into higher production in order to meet the demand. Therefore, production growth also stimulates the economic growth.
Consumerism increases consumption. More consumption requires more production. More production means more jobs and more income in society, and more income means more consumption. This is the cycle which, if managed properly, can bring growth and prosperity to society.
Consumerism is essential to our economy, however, governments should pass rules and laws to make sure that consumerism does not destroy our planet.
Self-check!
Try This!
Click on the link below to watch a video about what teenagers spend their money on. As you watch the video, think about what you spend most of your money on. You will write about this in the next assignment.