Consumption

When American productivity goes up, so does marketing and consumption. Let's say you work in a bakery, and you get more done in 8 hours than your grandmother used to when she worked here because she didn't have an electric mixer then. Instead, she had to mix by hand. Now that the bakery has a mixer, you can make the same amount of baked goods in less time. With that said, where is this productivity dividend going to go? It can go three places. Your boss could possibly reduce your hours, while you still make the same amount of money. (You get paid for your work, not your time.) You could possibly receive a raise. Or, your productivity dividend could go towards profits. Let's say we aren't talking about baked goods any more, but we’re talking about pants. How can I turn those extra pairs of pants into a profit? I have to sell them to turn them into money. The next question is, how can we convince people they want to buy more pants? This is when marketing comes into play. In unequal societies, like ours, if you throw marketing into the mix, it will work! Businesses prey on your insecurities, which get heightened through the advertising, getting American consumers to purchase a lot. More productivity, means more marketing, means more consumption.