Mid-Century Madness

The Story of Stuff is a great online piece. I think I will use it in my class, it will be a great contrast to the traditional circular flow model which is standard in every intro textbook.

It is rather odd, though, that the piece hearkens back to the "good ol' days" of the 1950s. I guess it was a simpler time really, when lead was in our gasoline and paint, asbestos was the flame retardant of choice, mercury was a fun thing to play with in chemistry class, and Valium kept the nuclear family happy. O how times have changed. Apparently women were happier then too (check out this editorial in the NY Times and tell me what you think).

All in all, I think it raises some important questions about our economic behavior and draws the conclusion that--gasp!--maybe our consumption decisions are not as rational as they could be.


So what is preventing people for being rational?


Lack of information?
Maybe. But even with some sort of simple rating system (4-star for labor relations or some label indicating "greener" production habits) it is hard to say if people would respond. Organic local produce is good, but price is still king. I say information is not enough, the price of goods must reflect its true cost in terms of all of its externalities.

How do we measure the true production costs of a good?
Ok, this one is pretty tough. How much is clean air worth to us? Clean water? What about improved labor standards? What wage level is an adequate wage level (ask Krugman or Kristof about this one)? Should the government set the price directly (yuck) or influence industry with market games like a cap-and-trade program for emissions?


Even if we adjust prices to match the true costs, do advertisers really have such a powerful pull on the consumers' behavior--enough to make them behave irrationally?
Some might say keeping up with fashion gives one a false sense of happiness. But who's to judge, really? Can we really judge everyone's purchases with one stardard? Just because dippy hippies buy thrift store clothes doesn't mean everyone should buy them. Afterall (as you are well aware), wearing thrift clothes can be a sign of status too (just in a different way). Different strokes for different folks, right? Or is one group being douped while the other has seen the light of true consumption happiness?

What about you, Jeffy? Are you happy with your recent purchases? Take a moment and think of the top 5 material goods that make you happy. Then list the 5 most expensive things you have ever purchased. Do they match up?

Here is my list (in no particular order):
Happy
1)Beach Vacations
2)Eating out
3)My computer
4)Grill
5)Tennis Racket

Expenses
1)Car
2)Computer
3)Glasses
4)New Bed
5)New Carpet