In Response to Michael Thompson

Michael Thompson's Blog
In our modern day, it is apparent that the "Overspent American" is getting worse. Do you think that things will continue on that path? When will it eventually be too much?


Until society stops viewing personal assets as success, no, I don't think consumerism will decrease or stop.  The recent recession only made people cut back on materials they were buying, it didn't make them stop. There are standards that people feel they need to meet in order to be "happy"; they buy the million dollar home, the Range Rover, and have the most recent technologies so that they feel successful in the eyes of their peers.


We live in a very competitive society, and companies know that. Companies such as Apple and even UGG know that if they keep producing new products, they can continue to raise the price and people will still buy them because their products are what people "need".  People in our society feel that they need to have the newest products because that is the only way they will be noticed.  


As long as companies keep producing new and improved products, the percentage of "Overspent Americans" will keep growing.  Debt is going to increase in many American homes because people care more about image than they do on their income.  Even if this means working 70 hour work weeks in order to pay the mortgage on their customized Mansions.


Perhaps once our parents pass and we are handed bills for hundreds and thousands dollars in debt our generation will realize the severity of the "Overspent American".
Do you think by raising prices companies are playing a part in the amount of debt Americans have?