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The '''consumer economy''' is that portion of the overall economic system that is dependent on individual or household consumer expenditures.  Goods that embody the consumer economy would include [[food]], clothing, housing, [[furniture]], appliances, [[automobile]]s, etc.; while services that comprise the consumer economy would include [[restaurant]]s, private hospital care, personal [[bank]]ing, commercial airlines, etc.  Thus, the consumer economy is distinct from (yet related to) the [[industrial economy]] which emphasizes trade between corporations (investment banking, industrial machinery, [[chemical]]s, etc.), and the [[public sector]] which involves the delivery of governmental services (bridges and roads, sewers, public education, entitlements, armed forces, etc.).   

The '''consumer economy''' is that portion of the overall economic system that is dependent on individual or household consumer expenditures.   

 

'''Goods''' that embody the consumer economy would include, for example:

*[[food]]

*clothing

*housing

*[[furniture]]

*appliances

*[[automobile]]s

 

And '''services''' that comprise the consumer economy would include, for example:

*[[restaurant]]s

*private hospital care

*personal [[bank]]ing

*commercial airlines

 

Thus, the consumer economy is distinct from (yet related to) the [[industrial economy]] which emphasizes trade between corporations (investment banking, industrial machinery, [[chemical]]s, etc.), and the [[public sector]] which involves the delivery of governmental services (bridges and roads, sewers, public education, entitlements, armed forces, etc.).   

When the economy of a nation is described as a consumer economy (sometimes '''consumer-based economy''' or '''consumer society'''), this implies that the nation's prosperity is significantly based in sustainable consumer demand for goods and services. Generally, such goods and services are obtained through exchange and not through self-production. Economists have suggested that, in a consumer economy, the concept of "enough, or more than enough" is undermined; the demand for goods and services, and the availability of income to purchase them, is assumed to be constant. The result is a close relationship between employment and income from employment on the one hand, and production of goods and services on the other.<ref>John K. Galbraith, "Foreword" in Neva R. Goodwin, Frank Ackerman and David Kiron (eds), ''The Consumer Society'' (Island Press, Washington, D.C., 1997, page xxi)</ref> It has been said that "(a) consumerist society is one in which the possession of an increasing number and variety of goods and services is the highest cultural aspiration and the surest perceived route to personal happiness, social status, and national success."<ref>Jerome Segal, "Alternatives to Mass Consumption" ''Philosophy and Public Affairs'' 15:4, 1995, pages 27 to 29.</ref>

When the economy of a nation is described as a consumer economy (sometimes '''consumer-based economy''' or '''consumer society'''), this implies that the nation's prosperity is significantly based in sustainable consumer demand for goods and services. Generally, such goods and services are obtained through exchange and not through self-production. Economists have suggested that, in a consumer economy, the concept of "enough, or more than enough" is undermined; the demand for goods and services, and the availability of income to purchase them, is assumed to be constant. The result is a close relationship between employment and income from employment on the one hand, and production of goods and services on the other.<ref>John K. Galbraith, "Foreword" in Neva R. Goodwin, Frank Ackerman and David Kiron (eds), ''The Consumer Society'' (Island Press, Washington, D.C., 1997, page xxi)</ref> It has been said that "(a) consumerist society is one in which the possession of an increasing number and variety of goods and services is the highest cultural aspiration and the surest perceived route to personal happiness, social status, and national success."<ref>Jerome Segal, "Alternatives to Mass Consumption" ''Philosophy and Public Affairs'' 15:4, 1995, pages 27 to 29.</ref>

In the 1980s, an easy-money system contributed to a marked boom in the consumer economy, which continued throughout the 1990s and early 2000s until the on-going financial crisis of the latter part of the 2000s.<ref name="sox">{{cite web|url=http://www.soxfirst.com/50226711/the_us_consumer_economy_is_dead.php|title=The US consumer economy is dead|publisher=Sox First Management and Compliance|accessdate=November 2, 2010}}

In the 1980s, an easy-money system contributed to a marked boom in the consumer economy, which continued throughout the 1990s and early 2000s until the on-going financial crisis of the latter part of the 2000s.<ref name="sox">{{cite web|url=http://www.soxfirst.com/50226711/the_us_consumer_economy_is_dead.php|title=The US consumer economy is dead|publisher=Sox First Management and Compliance|accessdate=November 2, 2010}}

</ref> Professor Peter Spencer of the Ernst & Young [http://www.ey.com/UK/en/Issues/Business-environment/Financial-markets-and-economy/Economic-Outlook ITEM Club] concluded that the consumer economy in the United Kingdom would not recover from the late-2008 recession until 2011.<ref>Wallop, Henry & Conway, Edmund (2008). [http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3227351/Consumer-economy-will-not-recover-until-2011.html "Consumer economy will not recover until 2011"]. ''The Telegraph'', telegraph.co.uk.</ref> Ann Kramer, in turn, has proposed a new economic system as an alternative to a consumer-based economy, due to the effects of the recent recession. Dubbed "Partnerism", the proposed economic framework would implement equal cooperation between all sectors of the economy, elevating the significance of what the author perceives as marginalized sectors. Kramer believes that the 2008 bailout of financial institutions in the United States was not a sustainable model, commenting that "Wall Street has been acting like drunken fools".<ref>Kramer, Ann (2008). [http://www.opednews.com/articles/Time-to-reinvent-the-econo-by-Ann-Kramer-080925-427.html "Beyond the Consumer Economy: Partnerism"]. ''OpEdNews''</ref> Borrowing by US consumers has fallen markedly with rising unemployment exceeding 10%, and consumer credit falling by 10%, in excess of five times what economists had predicted.<ref name="sox"/>

</ref> Professor Peter Spencer of the Ernst & Young [http://www.ey.com/UK/en/Issues/Business-environment/Financial-markets-and-economy/Economic-Outlook ITEM Club] concluded that the consumer economy in the United Kingdom would not recover from the late-2008 recession until 2011.<ref>Wallop, Henry & Conway, Edmund (2008). [http://www.telegraph.co.uk/finance/financetopics/financialcrisis/3227351/Consumer-economy-will-not-recover-until-2011.html "Consumer economy will not recover until 2011"]. ''The Telegraph'', telegraph.co.uk.</ref> Ann Kramer, in turn, has proposed a new economic system as an alternative to a consumer-based economy, due to the effects of the recent recession. Dubbed "Partnerism", the proposed economic framework would implement equal cooperation between all sectors of the economy, elevating the significance of what the author perceives as marginalized sectors. Kramer believes that the 2008 bailout of financial institutions in the United States was not a sustainable model, commenting that "Wall Street has been acting like drunken fools".<ref>Kramer, Ann (2008). [http://www.opednews.com/articles/Time-to-reinvent-the-econo-by-Ann-Kramer-080925-427.html "Beyond the Consumer Economy: Partnerism"]. ''OpEdNews''</ref> Borrowing by US consumers in the 2008 to 2011 period fell markedly with rising unemployment exceeding 10%, and consumer credit availability falling by 10%, in excess of five times what economists had predicted.<ref name="sox"/>

==References==

==References==