The Fed and consumerism

Consumerism appears to be a subject which unites both cultural conservatives and liberals. According to these two groups, the products of consumerist culture, such as cable/satellite television, mass produced merchandise, and fast-food, deadens authentic culture, such as family owned restaurants, hand-made crafts, and community theater. Since authentic culture is being snuffed out by consumerist culture, so the argument goes, there should be regulations placed on the free-market so as to slow the rot of authentic culture and curb the rise of consumerist culture. Both groups, it seems, blame the rise of consumerist culture on the free market.

What I am wondering is what connection does the Fed have in perpetuating a consumerist culture? One can argue until the moon escapes Earth's gravity whether or not "authentic culture" is indeed superior to consumerist culture. But that's not what I'm driving at.

My knowledge of the inner workings of the Federal Reserve are limited, but my incomplete notion of what is happening goes something like this: the Fed lowers interest rates, therefore allowing banking institutions to lend more money. If these banking institutions have more money to lend, then more individuals will have more money to spend. If an individual has more money to spend, then demand for many things goes up. Once the demand for various consumer goods goes up, then that signals to other producers to produce more of those things.

It appears to me, at least on a superficial level, that the debasement of our monetary system in effect debases our culture in general. That's just my opinion, and I'm curious of what others have to say.

Yeah, Hoppe for instance does tie the current economic system (not just its financial aspects) in with what one could term cultural decay. Personally I find a lot of the liberal/conservative/communitarian issues with consumerist culture to be silly, but obviously they are part of a system they do not wish to be a part of, that is forced upon them, something to which the state in general (and the Fed in particular, by promoting a consume instead of a save-and-produce mentality) contribute. So if you're asking do easy money policies contribute to a consumerist mindset? I'd have to say unequivocally "yes" to such a question. I myself however find elements of consumerist culture appealing so this aspect of it does not bother me too immensely.

-Jon

Congratulations on your first, very insightful post.

Welcome!

Jon Irenicus:

Yeah, Hoppe for instance does tie the current economic system (not just its financial aspects) in with what one could term cultural decay. Personally I find a lot of the liberal/conservative/communitarian issues with consumerist culture to be silly, but obviously they are part of a system they do not wish to be a part of, that is forced upon them, something to which the state in general (and the Fed in particular, by promoting a consume instead of a save-and-produce mentality) contribute. So if you're asking do easy money policies contribute to a consumerist mindset? I'd have to say unequivocally "yes" to such a question. I myself however find elements of consumerist culture appealing so this aspect of it does not bother me too immensely.

-Jon

Overall, the superficial criticisms of consumerism ( & unintentionally, by proxy, capitalism) of the two parties is pretty absurd; I doubt they would ever both elevate rhetoric beyond "Tag, your it :p".

As for criticisms of consumerism and/or capitalism, I personally found Antonio Negri's comments on how capitalism tends to expand it's control over the social space ("Capital is the totality of labor & life", Marx Beyond Marx: Lessons on the Grundrisse) to be fairly interesting, if a little vague.

 

With the cessation of a monopoly on law and order, I think these matters will be reduced to mere trivialities.

-Jon