Employment and Consumption
Adam Smith – a Scottish economist and philosopher stated that “consumption is the sole end and purpose of all production and welfare of the producer ought to be attended to, only so far as it may be necessary for promoting that of the consumer” [Adam Smith, The Wealth of Nations, 1937 Modern Library Edition, p.625]. This indicated that consumers are the justification for economic activity and implies that the demand to consume is based on the wants and needs of consumers are representative [REF]. Producers however, need consumers to hold an income to afford their products. Employment– or lack thereof – can be seen to have considerable effects on individuals. Generally, in order to increase consumption, consumers …show more content…
As a result, the incentive to gain employment leads to higher levels of consumption and therefore production, which is favourable for reducing the level of unemployment. That is to say that unemployment leads to a decrease in happiness for those liable to be part of the labour market (Dutt 2006). While unemployment can affect the wellbeing of those, just as equally so can employment. For instance, in periphery and semi-periphery countries, those that are employed in sweatshops for the fashion industry also face issues that impact their wellbeing. In Robert J.S Ross’s book ‘Slaves to Fashion: Poverty and Abuse in the New Sweatshops’, he represents the other side of the apparel industry and how those who work are exploited as a result of global capitalism. Although these individuals are employed, thereby increasing their income and consumption, they by way of employment experience a decrease in their wellbeing. Often they work strenuous hours and are paid little to nothing [Ross 2004]. On the other side of the spectrum, in post-industrial societies, this industry has resulted in the demand for fashion. Rather than the purchase of clothing that is appropriate for the weather, consumers with extra income purchase
Adam Smith – a Scottish economist and philosopher stated that “consumption is the sole end and purpose of all production and welfare of the producer ought to be attended to, only so far as it may be necessary for promoting that of the consumer” [Adam Smith, The Wealth of Nations, 1937 Modern Library Edition, p.625]. This indicated that consumers are the justification for economic activity and implies that the demand to consume is based on the wants and needs of consumers are representative [REF]. Producers however, need consumers to hold an income to afford their products. Employment– or lack thereof – can be seen to have considerable effects on individuals. Generally, in order to increase consumption, consumers …show more content…
As a result, the incentive to gain employment leads to higher levels of consumption and therefore production, which is favourable for reducing the level of unemployment. That is to say that unemployment leads to a decrease in happiness for those liable to be part of the labour market (Dutt 2006). While unemployment can affect the wellbeing of those, just as equally so can employment. For instance, in periphery and semi-periphery countries, those that are employed in sweatshops for the fashion industry also face issues that impact their wellbeing. In Robert J.S Ross’s book ‘Slaves to Fashion: Poverty and Abuse in the New Sweatshops’, he represents the other side of the apparel industry and how those who work are exploited as a result of global capitalism. Although these individuals are employed, thereby increasing their income and consumption, they by way of employment experience a decrease in their wellbeing. Often they work strenuous hours and are paid little to nothing [Ross 2004]. On the other side of the spectrum, in post-industrial societies, this industry has resulted in the demand for fashion. Rather than the purchase of clothing that is appropriate for the weather, consumers with extra income purchase