money & economicsanalysisLSE Business Review

People don't have unlimited wants, but markets keep them buying

the gist

Mainstream economics often assumes people have unlimited wants, but that has hardly been tested, and when people are asked, they say they don't want to live forever, be happy all the time or become billionaires. Wants are kept going by design. One pillar is shortening a product's life, so it breaks, goes out of fashion or can't be repaired and has to be replaced. Easy credit, constant advertising and frictionless online checkout make buying effortless. If wants are partly manufactured, then consuming less is a question of redesigning incentives and not just personal willpower.

so what

This challenges a core assumption of economics and suggests that shopping habits respond to how products and markets are built.

fun fact

The term 'planned obsolescence' became widely known after a 1932 pamphlet by Bernard London proposed it to end the Great Depression.

LSE Business Review · CC BY 4.0

Illustrative photo · LukaszKatlewa, CC BY-SA 4.0, via Wikimedia Commons