User:Pfuller3/sandbox

General -

Consumer driven economies also have the power to create new markets, this is because the model of consumption-driven markets does not always match the current market offerings. Thus creating a new demand for a product that either isn't being sold on this market, or is very difficult to find. This demand from the consumer for this new product with either be met by companies matching that demand with their supply or will fizzle out in a short period of time. Whether or not that demand is met by supply will be determined based on the definition of this product being a fad/trend or a future necessity.

United States -

On March 15, 1962 President John F. Kennedy declared a Consumer Bill of Rights, this gave the every day consumer in the United States the right to safety, to be informed, to choose, and to be heard. Prior to this Consume Bill of Rights, the United States was already considered a consumer driven economy. But with this added Bill of Rights for consumers, Kennedy launched a third wave of consumer economics. Prior to this third wave, we saw large increases in a consumer driven economy during the Progressive Era and the New Deal, but this third wave proved to be more powerful and more influential for it's time period. During the Progressive Era, we saw consumers and business seeking money for creating new markets and ultimately, new ways to make money. Whereas, the New Deal was a response to help working class Americans after the Great Depression, but in this time, the government was more interested in helping small businesses during trying times. Also, in both periods, industry regulations were much tighter than during the declaration of the Consumer Bill of Rights in 1962. Kennedy went on to define the "American consumer" as all of us. Stating that although this group makes up of two thirds of the economy, it's "the only important group ... that is not effectively organized, whose views are often not heard." So, for the first time since 1872 when legislation was enacted to protect the consumer from fraudulent actions by larger corporations, Kennedy had enacted the Consumer Bill of Rights that reminded lawmakers, the federal government, and the executive branch that they had a responsibility to protect consumer interests in the economy. This third wave consumerism wasn't manifested out of thin air, this fight for consumer's rights had been in the works in congress since the 1950s, Kennedy was just the head of this movement to bring the consumer more power and more rights in this economy. He wanted to encourage spending because he understood that it was the consumer that was number one driver of America's economy during that time.

Another contribution to this third-wave consumerism in the United States came about with the discovery of the "low-income consumer." This came from an article in the Journal of Marketing in 1970, which claims that the newfound concern for the "low-income consumer" had proved to be a primary driver in the emergence of this third wave consumer movement. Whereas in the two previous consumer driven economic movements, the "low-income consumer" was hardly a factor. Mainly because this group of people was not as sought after as it was during the 1960s. For example, during the Great Depression, a low-income household would be more focused on keeping their houses in order by putting food on the table and a roof over their head, instead of buying new cars, new clothes, or other amenities that large-income households could afford prior to this Great Depression. But it wasn't until the early 1960's that this "low-income consumer" was even brought to light when an African-American writer by the name of James Baldwin had protested that the market conditions for Harlem city residents in New York City were not sufficient enough to sustain a healthy lifestyle. He specifically caught the attention of the American public when he wrote about, "how expensive it is to be poor" and how people who go shopping in Harlem find the prices and quality of these products to be significantly worse than downtown. Almost as if they are in a completely different economy, just miles away from the affluent population of New York City.

Prior to the emergence of third-wave consumerism came the evolution of "home economics" in America during the 1920s - 1930s. At the Bureau of Home Economics, staff investigated the use, care, and maintenance of everyday goods that the average consumer would have in their home. This investigation led to creating new ways to efficiently spend money on household items to maximize output while minimizing the amount of money that the consumer will spend. Although this may seem like it contradicts this new consumer driven economy, it helps in the sense that the money that you save buy preparing food, utilizing your resources, and spending time more efficiently, the more money that you'll have in your pocket to spend on luxury goods. (Things that you otherwise wouldn't purchase if you didn't have the extra money). Although, the Bureau didn't stop at just food preparation, studies were done in order to prolong and lengthen the use of clothes. This would prevent the need to constantly purchase new clothing, which in turn saves money for luxury goods once again. Experiments were done on the affect of washing clothes at different temperatures while studying the effectiveness of washing clothes thoroughly while also lengthening the use that you'll get out of those clothes. With this new Era in the textile industry creating longer lasting clothes, this added value would be taken into account with the price of this product. But the consumer would know that buying these longer lasting fabrics would save them money in the long run, so they'd be willing to spend more money now in order to save money down the road.

China -

Although China is slowly moving towards a consumer driven economy, the elite and powerful members of China have a difficult time transitioning to a consumer driven economy knowing that it will cost them their power and influence with this transition. The economy isn't the only issue that is preventing these elite members of society to make this transition, as this capitalist society would pair best with a democratic government. This in turn would move the power from the elite to the general public, diluting their power and influence in their political system. This would cause a drastic change to their national identity, class system, and overall demographic as a nation as a whole. Which is why this movement will not happen over night.