Further GDP increase for developing/first world countries

This notion may be somewhat naive and not yet properly thought out, but there are many more possible investments for corporations and government alike – for the continued increase of GDP.

I say this because there ends up being a limit to the amount of airports, shopping malls, and other facilities of mass consumption developing countries are PHYSICALLY able to build. Eventually, as developing countries reach the status of first world countries, they run out of resources (in the simplest form of land) available to keep investing in these ventures. As a result, mainstream economics accepts that the GDP of the more wealthy nations increases at a much lower rate than developing/third world countries.

However, as we have learned in class this semester, there are many other forms of investment. What about the conversion of factories’ power plants into energy saving/biodegradable means of production? Not only does this lead to increase in investment, government expenditure, and consumption in newly developed industries, it also leads to a better environment for all to live in. Inevitably, we will run out of resources, so I really think it is a good idea to start looking into these other, perhaps underdeveloped and neglected industries.

Another such investment is education, normally seen as a positive externality due to the widespread public education system in most Western nations. However, as many developing/third world nations still charge tuition for basic education, it could be another investment for government and corporate alike.

It may be a little far fetched to think about in a society where we only focus on mainstream values of investment, but investment in other socially responsible ventures may be the key to increase GDP (and perhaps pull us out of this financial crisis).

Instead of using obviously fail-prone last resort techniques such as quantitative easing, monetary wealth can be poured into research for environmental friendly techniques (why aren’t there international brands which predominantly produce clothes made from organic cotton?), better education for the population in general, and perhaps even government expenditure on health care and medicinal research.

Searching for alternatives

In class we’ve been discussing the increasing viability of co-ops as service providing alternatives to the corporation. It’s inspired me to look harder for alternatives when making purchases even though buying from the corporation is often more accessible and cheaper. But actually, with the internet it’s become a lot easier to connect with co-ops and even individuals who provide goods and services you might need.

In particular, my aunt often visits family in Ireland and uses the site http://www.homeaway.com when searching for accommodations to directly connect with individuals renting houses or providing bed and breakfasts in Ireland. It’s proven to be a great alternative to the ‘mass produced’ hotel rooms since you get an actual kitchen to cook in, for instance. I actually think the international hotel chains are a good example of the impersonal nature of the corporation’s supplying to people in mass. I know I’ve never had a very personal or even enjoyable stay at a hotel, high end or not. Additionally, workers in hotels are often underpaid. It’s also the nature of a large hotel to be full of people but still relatively anonymous and full of formalisms from staff. It’s a very alienating and awkward environment for everyone in this way. Yet the easy name recognition of international hotel chains makes them more desirable for people traveling to a foreign country. The familiarity of the name brand feels safe, and it’s hard to combat that. So I really appreciate alternatives to this model. It may be convenient and feel safe, but it’s not desirable for anyone on a humanistic and socially responsible level on such a large scale. This is why I’m using Home Away to get in touch with local people in Buenos Aires both to avoid the hotels and experience something different. It’s also proving to be a lot cheaper than the hotels which is an added bonus.

Greenwashing

I just got to a hotel for the night after spending the evening at the airport, mired by delayed flights and airport complications. Out of frustration I immediately headed for the shower only to be distracted by this little placard in the middle of the shower that read ‘Your choice makes a difference!  Please help us save the environment by reusing your towels.’  My first thought was “wow, that’s really considerate of them to be so eco-friendly!”  Then I remembered our discussions about “greenwashing” and pulled out my laptop to read up on the subject only to read these lines at its wikipedia page:

“The term greenwashing was coined by New York environmentalist Jay Westerveld[3][4][5] in a 1986 essay regarding the hotel industry’spractice of placing placards in each room promoting reuse of towels ostensibly to “save the environment”. Westerveld noted that, in most cases, little or no effort toward waste recycling was being implemented by these institutions, due in part to the lack of cost-cutting affected by such practice. Westerveld opined that the actual objective of this “green campaign” on the part of many hoteliers was, in fact, increased profit. Westerveld hence monitored this and other outwardly environmentally conscientious acts with a greater, underlying purpose of profit increase as greenwashing.” (http://en.wikipedia.org/wiki/Greenwashing)

It’s amazing to what extent businesses and corporations will go to drive profits.  As the above anecdote shows, greenwashing is a very effective method to counteract increasingly savvy customers who are calling for more sustainable and eco-friendly products.  With greenwashing, corporations are helping the modern savvy customers feel as if they are nullifying their carbon footprints or doing their part in saving the rainforests when buying their product or using their services.  In a way, greenwashing is a means of justification to more consumption.

As consumers, we’re getting smarter about corporations’ tactics, but we’ve got to remember corporations and their ad agencies are getting smarter, too.  They have the resources and the capabilities to figure out what consumers are concerned about and doing.  Greenwashing is simply another smart tactic corporations are using to counterbalance the smarter consumer.  As this tug-of-war continues, I suppose the only thing responsible consumers can do to stay on top is to be aware of these tactics and buy accordingly.

Obstacles of Transformation

          When we were talking about the transformation to a socially responsible economy by promoting Fair Trade and/or buy local, it brought me to the concern about Free Trade. What we should do with it? While Fair Trade really benefits poor countries and no harm to rich countries, a policy that imposing a percentage of Fair Trade and buy local goods to large firms might be criticized as protectionism in the WTO structure. And protectionism is a very sensitive issue in today’s world.

          If there is no government intervention, educating consumers and citizens becomes the most important task. Consumers and citizens usually have been educated by advertisements. From time to time, activists who concerned about the environment and human rights would do some demonstrations in the public, but there is no comparison of the frequencies of their presence to commercial advertising programs. Ten years ago, the CEO of Ingersoll Rand, Asia told me that, in today’s world, who owns more TVs owns the world. If this is the truth, the transformation needs to go from top down.

Wal-Mart: The High Cost of a Low Price

After our class discussed the possibility of doing a flash mob at Wal-Mart, I finally watched Wal-Mart: The High Cost of a Low Price, a documentary by Robert Greenwald that had been sitting in my Netflix queue for a while. The documentary is composed mainly of stories by current and former Wal-Mart employees. These saddening stories of mistreatment and exploitation are contrasted against Wal-Mart’s own commercials, which promote Wal-Mart as an organization that offers a caring environment and wealth of opportunities for employees.

The documentary offers a completely different picture of Wal-Mart, listing a dizzying array of injustices: former employees speak up about the demeaning workplace environment, pressure to work overtime without getting paid, and Wal-Mart’s anti-union activities. Despite being the biggest and richest retailer in America, Wal-Mart employees are paid well below a living wage, and many are encouraged to get healthcare from government-aid programs. I was outraged to discover the extent of Wal-Mart’s neglectful behavior; Wal-Mart refused to spend money on security in its parking lots, despite the rising number of murder and rape occurring in these areas throughout America. Instead, they concentrated their surveillance efforts within the store to curtail shoplifting. Not only does Wal-Mart not care about its employees, it doesn’t, apparently, care about the well-being of its consumers, who are the lifeblood of the company.

Although the film explored Wal-Mart’s “crimes” against humanity on several different layers, it was quite one-sided. It did not explain why the company is a success or how it gets away with its activities. I was also left wondering about the CEO of Wal-Mart but, more glaringly, I was curious about consumers who routinely shop at Wal-Mart. Did they possess this information when they were “voting with their dollars”? Were they aware that Wal-Mart has a reputation of driving local stores out of business? As a shopper myself, I watched the documentary with varying levels of disenchantment. Although I don’t go to Wal-Mart very often, I do make a trip for school and dorm-room supplies at the beginning of each year. People go to Wal-Mart for the low prices, and I am definitely guilty of perusing the aisles for the “best deal”. Those cheaper prices, however, no longer seem so cheap when you factor in the lives and labor of Wal-Mart employees. Although many people probably think of Wal-Mart as reliable, I realize now that the only reliable aspect Wal-Mart provides is securing the lowest possible price at whatever cost. This really highlights the selfishness inherent in the capitalist system and makes me re-think where I will make my customary shopping trip at the beginning of next year.

Solidarity Economy

I think there are three main hindrances of a national solidarity economy in America: tradition, pride, and convenience.

The first is pretty self-explanatory. Capitalism is deeply rooted in American history, making it all the more difficult to move past it. Granted, I don’t expect anything as vast and extreme as the Red Scare to happen in response to the Solidarity economy. However, morphing a whole nation’s economic ideology would require a step-by-step process, otherwise there may be more resistance from special interest groups and the people they influence.

The second might seem a little strange, but it makes a lot of sense. When reading about the Freegans, I was struck by a huge appreciation not only for their message, but also that they were more than willing to back up their ideals with (illegal) actions. Why do we allow there to be so much waste in the food industry when there are so many people who are hungry or barely scrapping by? There is a huge amount of stigmatization not only of these poorer groups, but also of the political groups, such as the Freegans, who choose to pointedly go against the capitalist grain. Granted, Freegans are a rather extreme example of this. Nonetheless, people who are willing to align themselves with a system different than the “normal” capitalist views are giving up their ego for the sake of the solidarity, and many people may not be entirely comfortable to take that step.

Lastly, I’ve come to realize that an unofficial American value is convenience. I’ve definitely experienced the temptation of using paper place settings so that I didn’t have to wash any dishes. When watching the video of the No Money Man, I was in awe of the skills that he had, but it was extremely easy to admit to myself that I was far too lazy to follow his example. Normal citizens often have trouble with far less extensive changes. Going to the grocery store with a familiar name instead of branching out to the unfamiliar local market is a source of comfort and routine that is psychologically hard to break out of. This is why microwavable meals exist – we don’t want to worry about things more than we have to. We want it all, and we want it quick and easy.

Now, I’m definitely not trying to rain on anyone’s parade! Throughout this section I’ve been struck by the movements to strengthen the solidarity economy.  I found myself reading the cohousing website with serious interest, unconsciously looking up cities that I have thought about living in to see if there were any looking for new members. I think that our generation has more of a conscious awareness of the movement, and I definitely hope that it will expand.

Local Ag

We have been talking about supporting local economies and community. I studied abroad in Australia last semester and saw an excellent example of this. My host mother would take me to the local farmers markets to shop for food- she purchased all of her produce, meat, and bread from local farmers. Farmers markets were frequent and numerous. For her, it was clearly a better choice than shopping at a grocery store- the local food was cheaper, fresher, and better tasting. She had different markets she would go to on different days of the week because the man at market A sold the best macadamia nuts and the farmer and market B sold the best rosemary bread. We would stop to talk to the other families she had gotten to know from shopping there every week and the farmers who she knew by name. It was a social event, combining people from the surrounding communities. It also was so much more exciting to buy delicious looking food from a friendly person than to trudge through a grocery store. Shopping food was my favorite activity to do with my host mom. I was pleasantly surprised at the way the markets were an essential part of these communities. Where I live, farmers markets happen very rarely and you would not be able to buy all of your food from one. CSAs (Community Supported Agriculture) are becoming more popular though in the US, and it was encouraging to see that local agriculture can have a serious and prominent role in our economies, even in highly developed areas such as cities.

Optimism at the Hope of a Cooperative Economy

This final section of the course has been a very interesting one to me—while I enjoy thinking about what needs to change in the system we exist within and unwillingly contribute to, it is exciting to hear about socially responsible actions that do, in fact, make a difference.  I can list plenty of improvements I would love to see realized on the global scale, but if they are too abstract to actually be implemented, these ideas remain ideas.  Good news, though: steps are being taken towards a solidarity economy, from changes in individual choices to larger social entrepreneurship ventures. I myself am inspired to more heavily consider the decisions I make as they affect others, whether it be purchasing Free Trade coffee instead of grounds from a larger manufacturer or not supporting firms that are blissfully ignorant of their carbon footprint.  In being introduced to all of these ways consumers, citizens, and employees can make a difference, I am made aware of the opportunities available to me to continue this progress towards cooperation and environmental respect.

Our in-class discussion about choosing careers based on what we value as individuals and endeavoring to do something that we enjoy shed light on the dilemma I am currently facing in balancing my desire for financial stability and my desire for a “priceless” profession.  I can have both; I can have a career I can stand behind because, whichever field I enter, I can be sure that I actively support the firm’s social accountability from the inside—just as  I can refuse to take a job that compromises my personal  philosophies on economic stakeholders versus just the shareholders.  In thinking of this, I cannot help but hold some lingering inhibitions about those who enjoy doing things at a consequence to the environment.  If I don’t agree to lie about a company’s “green” status, someone else certainly will.  I’m not saying that we’re doomed by any means, but we need to restructure and reshape the way we feel towards making money by faulty means—if we can strip these high-paying jobs of their value because they aren’t morally responsible, there is the potential that fewer people would be so inclined to pursue them.

Black Friday

Oh, Black Friday… Where to begin?

It’s a guilty pleasure of mine. And with our recent discussions about simple living, I’ve been feeling guiltier and guiltier about my raging consumerism on this Holy Day of Shopping. Every year, me and my mom make a solo trip into Burlington, VT – a bustling metropolis, I assure you. And I’m sure I don’t have to tell you that there is something a little thrilling about walking out of a store with a bag of stuff and knowing that you found great deals on everything you needed. Several times this Friday I’ll high five my mom before getting in the car. We’ll blast our girls’ music and ride around town, power walk through stores and the downtown area – when it’s just us two, everything is smooth and efficient.

Then again, Vermont isn’t quite the Black Friday experience I’ve heard about from friends in other major towns and cities. People are actually nicer on Black Friday than on any given busy shopping day. It might help that we don’t line up at WalMart or Best Buy, but even going to the mall – which has a hellish parking system anyways – is kind of a pleasant experience, people-wise. We’re all on the move, but everybody understands that there are going to be delays and traffic and we’re all pretty polite and cordial to each other. The best is in the check out line, though. There’s not much you can do to make it go faster, and with the people in line with you riding the adrenaline rush of finishing up with another store, everybody’s chatty and eager to share.

But why do we feel so good when we’re shopping? Yeah, to an extent there’s the advertising and the impression that having more is good, but there’s something very therapeutic about it, and it’s not just about acquiring stuff. I’ve had the same two best friends since kindergarten and we’re still as tight as ever, but I haven’t actually picked out gifts for either of them in years. It used to be a marker of true friendship – I know you so well that I picked out exactly what you never knew you needed. But after a few seasons of all of us resorting to the “just tell me what you want” phone calls, we decided it would be so much more fun to go on a shopping trip together and pick out what we each want. Sometimes none of us end up buying anything, but I’ve come to realize how much of a bonding experience it is. There’s no pressure to talk about anything in particular, and the constant movement of the day is energizing. Plus there’s the constant shower of compliments – on your body, your taste, your style. Not that we don’t give out compliments at any other time, but shopping with friends has its own special ego boost.

I think to discredit the power of group shopping as being all about consumerism is a misunderstanding – at least in my experience. It might be a little shallow and consumer-driven, but I don’t think it’s as inherently evil as all that. And maybe I’m only trying to justify my deep-rooted and well-nurtured need to purchase, but I think experience that is a Shopping Trip combined with socially-responsible consumerism is the perfect way to spend my Black Friday. It certainly requires some research and smart shopping, but it was never the things themselves that were the ultimate source of satisfaction at the end of my day. (Unless we’re talking about books. Whole new ball game, right there.)

Fads and advertising

The other day, my friends and I were talking about the different fads that have come and gone in our lifetime. We reminisced about Tamagachis, Furbies, and Pokemon. We talked about how many Beanie Babies we each owned, and how many hours we spent on Neopets. And at the time, all of these things felt like they were of the utmost importance. We wondered, what made each of these so irresistible? How did we fall so hard for so many fads?

If I step back and look it, I’m always amazed by the power of advertising and the power of the trend. It’s almost scary how easily affected we human beings are. Our brains are so malleable; our cravings are so easily piqued and changed by the phrase “OMG look at this cool new thing I got.”

Lately, I’ve been seeing more and more advertisements that advocate positive behavior. Imagine a world where advertisements didn’t push us to overconsume and compusively buy but instead advocated socially responsible consumption. I bet that if we can be so easily led to behave irrationally, it would be easy to lead us right. There seems to be trends that are heading toward greening our lives, recycling/reusing, and free trade buying.

But perhaps what is most saddening is that the companies that can afford advertising are often the ones that are profit-oriented and don’t care too much about social responsibility, community, etc. It is also interesting to see how these profit-seeking companies twist these trends to their benefit (like selling “vintage” jeans for hundreds of dollars). I can’t wait to see how people will harness the power of advertising for good causes and to promote real positive (rather than irresponsible) behavior.