What started first -- our addiction to cheap goods or the exodus of American manufacturing jobs overseas? It’s hard to say, as each feeds the other: the more cheap goods we buy, the poorer we become and the more demand we create for cheap goods. If left unchanged, this dynamic must inevitably trap a growing number of Americans in a low-wage economy and accelerate our environmental problems (the “E” problems).
Most
of us don’t think about the story behind each thing we buy. This is not surprising,
as the story is both complex and it’s often not in the best interest of the
producer to tell it to us. A
recent National Public Radio initiative, “The Planet Money T-shirt Project”,
attempts to unpack one of these stories by following an order of 25,000
t-shirts from cotton farm to manufacturing to final delivery. The project goes a long way towards
explaining how our current consumer culture supports an unsustainable global
economy.
In
a forthright interview, the CEO of Crystal, the Columbian company that makes
the women’s Planet Money t-shirts, sums up the operating principles of modern
production concisely:
The garment worker commute in Bangladesh. |
This is because the core goal of most producers in today’s economy is to make their good as cheaply as possible in order to maximize sales, shareholder value and corporate profit. As Restrepo observed, manufacturing jobs gravitate to countries where people are willing to work for the least amount of money. While the average annual wage of an American manufacturing worker was $23.70 per hour in 2011, it was $1.17 per hour in India, $1.60 per hour in China, $4.53 per hour in Mexico, and $7.93 in Brazil.
I
guess a sign of our success is that we’ve been saying “bon voyage” to
manufacturing jobs in America for a long-time now. In 1961 manufacturing
jobs accounted for 28% of all jobs in America; by 2010 that share had fallen to
9% of all jobs. These jobs are often credited with having built
the American middle-class, paying wages that supported a stable
livelihood.
Today,
we are no longer a country that makes things. Our modern economy is largely
service based, with 85% of
American jobs in the service-sector (a broad term that includes everything
from doctors, lawyers and hedge-fund manager to fast-food workers and
janitors). Should we be worried about that?
The
answer to that question depends on where you sit on the service-sector ladder;
while a small number of white-collar professions capture a growing share of
income, our economy has proven best at producing low-wage jobs. Since
2009, 40%
of all new jobs created pay less than $14 per hour. The fastest
growing occupations are food worker ($9.04 per hour) and retail sales ($10.97
per hour).
In
this new economy, most Americans have seen their wages stagnate and the effects
have rippled throughout our economic system. As many Americans have begun
to feel the pinch, they have shifted their buying habits towards cheaper goods
made overseas.
Global
corporations have proven incredibly adept at feeding our growing appetite for
cheap goods. In fact, they have gotten so good at it, that we now find
ourselves buying more things than we ever have before.
The
apparel industry is a great example. Today, 97%
of all apparel sold in the US is made overseas. Not only has this
resulted in the loss of
80% of US apparel manufacturing jobs since 1990, as prices have fallen
we’ve consumed more and more apparel goods. On
average, each American purchased over sixty pieces of clothing in 2012.
As the prices for goods have fallen, we have bought more and more things of all
kinds. In
a study looking at this trend between 1997 and 2002, this included more
computers, toys, televisions, sheets, towels, shoes, and appliances.
And
so we face the vicious cycle: the global free-market moves manufacturing to
where it can make things the cheapest, the US loses decent paying manufacturing
jobs, more and more Americans feeling the financial pinch buy cheaper goods
made overseas, further cannibalizing American manufacturing jobs and a decent
wage economy. The cheap goods economy expands.
Not
only are good wage manufacturing jobs being replaced by low-wage service jobs
but the cheap goods economy is leading to ever-growing resource use, pollution,
and waste disposal problems. Cotton grown for clothes requires intensive
pesticides. Computer, cell-phone, and other electronic appliances production
involve the intensive use of toxic metals. Jewelry and watches necessitate
precious metal mining, a process that employs toxic chemicals and results in
ecological damage. The majority of toys are nearly all plastic, which
once thrown away can take over four
hundred years to decompose.
Everything
we make has an environmental impact. Every time we buy something, we give
our consent to that trade-off. The more we buy, the greater that
environmental impact becomes.
So
what are we to do? We live in an economy that requires us to keep
consuming to keep our economy growing. Stop
consumption completely?
Unlikely and what would most people do for a living? Go back to a barter
or agrarian economy? Even as a bearded, back-to-the-land type, I know
this is never going to be the way most people live. What are we to do?
I
have thought about these questions a lot -- time to think is one of the
pleasures of long winters on a farm. I don’t think we’ll be leaving our
consumption-based economy behind for some time or it’s too far into the future
to see from where we sit now. But I do think we can change the way we
consume and the things we consume, changes that can help build a new American
production economy and greatly reduce the environmental damage our consumption
creates.
I
think we all need to pay much more attention to where and how the things we buy
are made and recognize that each thing we buy is a statement of our
values. Even if most people would like to practice this type of conscious
consumption (and I believe many of us do), we often lack the information
necessary to make an informed choice.
Part
of the barrier to becoming a more conscious consumer is a metaphysical problem:
shopping in a store or on-line we are confronted only by the object we are
considering buying. We are bound by space and time and can see the object only
in the present moment, seeing nothing of how it got to the shelf or what will
become of it after it has lost its usefulness to us. We too often make
our choice in ignorance, yet the action of buying any particular object
validates and sustains the process by which it was created and the impact it
will have once disposed of.
This
is not an insolvable problem; in fact, there are many successful examples of
creating an opportunity for people to make more informed decisions. As
scientific consensus has revealed the dangers of smoking cigarettes, some
countries have used
graphic images to warn prospective buyers to the dangers of smoking.
While all food or beverage products already have a basic nutrition label, the
growing obesity epidemic tied to the over consumption of sugar recently led the
Food & Drug Administration to revise
the label and create the category of “Added Sugar”. This change
allows consumers to see the amount of artificial sweeteners (like high-fructose
corn syrup, which has been directly tied to obesity) producers are purposefully
adding to their food products.
But
the failure of these types of labels is that they assume that we care only about
information that pertains to ourselves – how consuming a product may negatively
effect us individually. Of course we care about our own health and
happiness; but if that is the limit of our concerns, we must inevitably fail to
confront the magnitude of the economic and environmental problems we face collectively.
While
accessing this amount of information might seem overwhelming, technological
innovations like barcode
scanning apps that allow you to use your Smartphone to access product
information make it a realistic possibility. The problem is not
technology, it’s that we can’t get access to these types of information from
private corporations and it has not been in their interest to provide it to us
(the
recent battle of labeling Genetically Modified Foods is an example).
While
we work for comprehensive transparency around the things we buy, a good place
to start today is buying things that are “Made in America”. We have spent
a century building up a regulatory system that is meant to protect consumers
from unsafe products, reign in production processes that have negative
environmental impacts and create safe and healthy working conditions. While many of us know these systems are
in need of major reforms, they are far ahead of the regulatory systems in the
countries where most of the things we buy are now made. Buying a foreign
product essentially bypasses this whole system, throwing generations of work
overboard.
Most
importantly, we know that American-made products will pay higher wages to the
people who make them. The trade-off is clear when we buy cheap, foreign
made goods: we are sacrificing the types of jobs that helped build an American
middle-class in order to save a few dollars. Breaking the vicious cycle
of that cheap goods economy begins by refusing to buy cheap goods.
We
know that a “Made in America” label means we’ll have to spend more money on
what we are buying, leaving less for other things. But assuming we have
enough to cover our basic needs, is that so bad? Maybe we should be
focusing more on quality than quantity, buying less stuff, but making sure the
things we buy support a more equitable economy and reduce our environmental
impact.
This
thinking is catching on among leading corporations, inspired both by growing
environmental concerns and recognition
that chronically declining American wages are eroding their customer base.
Patagonia launched a “Don’t Buy This
Jacket” ad campaign, directly advocating for less consumption generally and
more conscious consumption of higher quality products that last longer and
directly reduce environmental impacts. Last year Wall-mart, America’s
largest retailer, announced
a commitment to buy $50 billion more in American made goods over the next ten
years. (Some critics have correctly pointed out that Wal-mart’s plan
remains firmly grounded in maintaining the status-quo of a cheap goods economy,
as they’ve said their customers shouldn’t pay any more for something “Made in
America”.)
But we have to start rebuilding a more sustainable economy (both socially and environmentally) somewhere. To have an opportunity to be more conscious consumers, we must have access to the information that allows us to make an informed choice. To be more conscious consumers, we must be willing to buy less stuff and pay more for products that help create a more sustainable economy. To ensure all Americans can afford to participate in this economy, we must work to ensure all Americans are paid wages that allow them to meet their basic needs so they have the choice to consume consciously.
Here’s how you can take action to start consciously consuming:
But we have to start rebuilding a more sustainable economy (both socially and environmentally) somewhere. To have an opportunity to be more conscious consumers, we must have access to the information that allows us to make an informed choice. To be more conscious consumers, we must be willing to buy less stuff and pay more for products that help create a more sustainable economy. To ensure all Americans can afford to participate in this economy, we must work to ensure all Americans are paid wages that allow them to meet their basic needs so they have the choice to consume consciously.
Here’s how you can take action to start consciously consuming:
- Learn more about the stories behind the stuff we buy;
- Reward good corporate practices by looking for labels that signify better production practices, such as certified naturally grown, organic, fair trade, and energy star (energy efficiency);
- Buy less and whenever possible, try to identify and buy a product Made in America.
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