Consumerism habit is a subject of ongoing debate because some people constitute that it has positive impact on a country economics, while some are thought that it has downsides. In forthcoming paragraph, I will discuss two viewpoints and offer my own perspective.
Regarding to overconsuming, it is undeniably true that it can boost the economic growth. When people spending money either for goods or services, it obviously drive the economic activities which are supporting by economic actors such as producer, big-scale and small-scale trader, and even the employees. Subsequently, those who are involved in economic circular earning money which bolster the economic growth. One of the countries that has high spending on final goods is Indonesia. Aligned with that Indonesian economy grow up to 5% in average, higher compare to other Asian countries. This economic growth is driven by consumption, around 60% of their total Gross Domestic Product.
Albeit its benefits, consumerism has its own drawbacks especially in terms of saving. Owing to impulsive spending, mankind tend to neglect saving. As a result, they have no sufficient money to anticipate emergency condition as well as future needs. Moreover, the diminish of propensity to save might increase inflation owing to huge amount of money widely spread on market. This fact will encourage producer and seller to rise the price because they normally assume that people have adequate capacity to buy. When the price is higher, people allocate much money to afford a good which consequently reduce their capacity to save. For example, Zimbabwe, one of the country with high inflation. They have less saving compare to other emerging countries.
In conclude, overspending is imperative to strengthen economic growth, however it should be done appropriately to have wise financial management.