Is the American economy based on excess?

Question

What would happen if, all of the sudden, everyone decided, "I don't need that really fancy car." or, "I only need to live in this small house, instead of that big one."
If all the things that Madison Avenue does to try to get us to buy didn't work any more, what would happen?

I am not "Green" or anything. I was just listening to a motivational tape that talks about living within your means and wondered what would happen if we all lived that way.

Answer 1

Demand for goods and services would decrease dramatically, which in turn would lead to firms laying staff off, which would lead to less money in peoples pockes, which would mean less spending on goods and services, which would lead to job losses........etc, etc, etc, repeat until your economy resembles something that is only normally seen in nations east of Germany......

Its a particularly nasty economic spiral effect and if you do not want to see it - get buying those CDs and clothes!!!

Answer 2

Our over consumption keeps our economy strong but hurts us at the same time. If someone without a family buys a huge house it keeps money in the pockets of mortgage companies and their employees. If someone buys and Escalade instead of a Neon, it is better for General Motors and the American Oil companies. On the other hand, we funnel money to China by buying crap from Wal-Mart. Don't adopt a beatnik attitude because it is impossible to not be a hypocrite.

Answer 3

Yes, and so is any other Western society.
If globalisation and corporate greed go unchecked for another decade, quite a lot of people will be forced to make just that choice, though. I think they are sawing off the brach they are sitting on.

Answer 4

Based more on artificially manufactured need.

Answer 5

we'd find excess in other ways imho