Why Conservatism Doesn’t Work (or, Why Liberalism Will Destroy America)

Economic policy hinges on stimulating growth. Prior to the 1930s, the United States took a very conservative Laizzes-Faire stance on the economy, and by any standard of measure through the 1920s it seemed to be working well enough - even spectacularly as the decade progressed. But then the Great Depression hit, something that many saw as the quintessential failure of conservative economic policy. It was only with Roosevelt’s unprecedentedly liberal New Deal program coupled with the spending World War II entailed that the economy could get back on its feet again. What then went wrong? What changed in society that rendered an economic policy that had served us well for so long so suddenly obsolete?
Americans in the early 20th century, after enough money for basic needs and a few luxuries, for the most part would opt for more leisure time than more pay. But the early 1920s saw the rise of incredible new technologies to increase productivity per worker hour such as the assembly line. Productivity skyrocketed, leading to a massive glut of overproduction in a number of important fields like automobiles and consumer electronics. Faced with a population for the most part content with their current lot, these overproducing companies faced a dilemma: How do we sell all this excess?
Companies all over began at that point to launch huge advertising campaigns to try to engender in the American mindset the “Dissatisfied Consumer”, as GM vice president Charles Kettering put it. Kettering and GM were, in fact, instrumental in this mass-brainwashing, at one point stating that “the key to economic prosperity is the organized creation of dissatisfaction”. Of course by economic prosperity he meant producer prosperity. GM began to introduce yearly car models at this point to achieve this end, and it was at this point as well that advertising began to take off as a ubiquitous medium and shifted largely from logos appeal to pathos appeal. Economists like Hazel Kyrk heralded the new consumer culture as a new dawn of economic prosperity, and the new Consumption Economics school of economic thought was quick to emerge from it, and Americans conformed their buying habits from clothing to food to utilities to the whims of producers and advertisers.
But the huge productivity increases were not coupled with an increase in wages. In fact, as human capital became in large part unnecessary for much manual labor due to automation, layoffs and pay cuts were hardly uncommon. In order to absorb the overproduction, consumers had to purchase on installments and credit, a sector that mushroomed during the 1920s. The credited money flowing into the economy was in many cases not backed by actual capital, and grew to such a large portion that banks were caught by surprise when they could not produce enough capital to back the mass withdrawals that took place in 1929. The economy simply imploded from saturation with hollow credit money.
Mass-consumerism was essentially the killer of conservative economic policy. But from the comatose corpse of our laizzes-faire economy rose not a backlash against the consumerism that brought forth the situation, but instead a new form of economic policy designed to sustain and encourage the consumer mindset: Keynesian economics. The policy changes in the ensuing decade were in many ways retrospectively obvious safeguards to protect against another crash, such as requiring banks to hold a certain percentage of their recorded capital as actual capital, but in others such as social security, welfare, and unemployment benefits were designed to supplement or even replace wages in order to transform even the poorest rung of society into consumers. Even today arguments to raise the minimum wage are based on the assumption that anyone who works is entitled to consumership. In its battle with conservatism, consumerism emerged victorious with the world economy as the casualty, and survived even through the depression to become a stronger force today than ever before.
But mass consumerism, even with liberal economic policies, is not sustainable in the long run. The national debt has risen almost every year since Roosevelt’s administration and is exponentially increasing - from nearly $0 in 1932 to an astronomical $8,981,543,146,057.86 as of August 24, and will continue to rise for the foreseeable future. In the last election, dire projections were made that the government will be bankrupt by the 2030s if it continues to pay out wage supplements. Even with the debt centralized like that, the economy cannot handle an indefinite increase in national debt, yet a return to 1920 conservatism ceteris paribus would only crash the economy sooner rather than later.
The only long-term sustainable economic option without major economic restructuring is to reverse nearly a century of cultural brainwashing by producers. Severe limits and restrictions on advertising in any medium coupled with a massive propaganda campaign encouraging contentness and thrift would be the least we could do - intentional reshaping of an entire cultural mindset was done once before; it must then be done again to reverse the damage of the first.
Unfortunately, consumerism has magnified complacency to the detriment of alarm. It may just take another Great Depression to reawaken us to our own decadence.
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