Reexamining the Good Life

By Amitai Etzioni

Much of the debate over how to address the economic crisis has focused on a single word: regulation. And it’s easy to understand why. Bad behavior by a variety of businesses landed us in this mess–so it seems rather obvious that the way to avoid future economic meltdowns is to create, and vigorously enforce, new rules proscribing such behavior. But the truth is quite a bit more complicated. The world economy consists of billions of transactions every day. There can never be enough inspectors, accountants, customs officers, and police to ensure that all or even most of these transactions are properly carried out. Moreover, those charged with enforcing regulations are themselves not immune to corruption, and, hence, they too must be supervised and held accountable to others–who also have to be somehow regulated. The upshot is that regulation cannot be the linchpin of attempts to reform our economy. What is needed instead is something far more sweeping: for people to internalize a different sense of how one ought to behave, and act on it because they believe it is right.

That may sound far-fetched. It is commonly believed that people conduct themselves in a moral manner mainly because they fear the punishment that will be meted out if they engage in anti-social behavior. But this position does not stand up to close inspection. Most areas of behavior are extralegal; we frequently do what is expected because we care or love. This is evident in the ways we attend to our children (beyond a very low requirement set by law), treat our spouses, do volunteer work, and participate in public life. What’s more, in many of those areas that are covered by law, the likelihood of being caught is actually quite low, and the penalties are often surprisingly mild. For instance, only about one in 100 tax returns gets audited, and most cheaters are merely asked to pay back what they “missed,” plus some interest. Nevertheless, most Americans pay the taxes due. Alan Lewis’s classic study The Psychology of Taxation concluded that people don’t just pay taxes because they fear the government; they do it because they consider the burden fairly shared and the monies legitimately spent. In short, the normative values of a culture matter. Regulation is needed when culture fails, but it cannot alone serve as the mainstay of good conduct.

So what kind of transformation in our normative culture is called for? What needs to be eradicated, or at least greatly tempered, is consumerism: the obsession with acquisition that has become the organizing principle of American life. This is not the same thing as capitalism, nor is it the same thing as consumption. To explain the difference, it is useful to draw on Abraham Maslow’s hierarchy of human needs. At the bottom of this hierarchy are basic creature comforts; once these are sated, more satisfaction is drawn from affection, self-esteem, and, finally, self-actualization. As long as consumption is focused on satisfying basic human needs–safety, shelter, food, clothing, health care, education–it is not consumerism. But, when the acquisition of goods and services is used to satisfy the higher needs, consumption turns into consumerism–and consumerism becomes a social disease.

The link to the economic crisis should be obvious. A culture in which the urge to consume dominates the psychology of citizens is a culture in which people will do most anything to acquire the means to consume–working slavish hours, behaving rapaciously in their business pursuits, and even bending the rules in order to maximize their earnings. They will also buy homes beyond their means and think nothing of running up credit-card debt. It therefore seems safe to say that consumerism is, as much as anything else, responsible for the current economic mess. But it is not enough to establish that which people ought not to do, to end the obsession with making and consuming evermore than the next person. Consumerism will not just magically disappear from its central place in our culture. It needs to be supplanted by something.

A shift away from consumerism, and toward this something else, would obviously be a dramatic change for American society. But such grand cultural changes are far from unprecedented. Profound transformations in the definition of “the good life” have occurred throughout human history. Before the spirit of capitalism swept across much of the world, neither work nor commerce were highly valued pursuits–indeed, they were often delegated to scorned minorities such as Jews. For centuries in aristocratic Europe and Japan, making war was a highly admired profession. In China, philosophy, poetry, and brush painting were respected during the heyday of the literati. Religion was once the dominant source of normative culture; then, following the Enlightenment, secular humanism was viewed in some parts of the world as the foundation of society. In recent years, there has been a significant increase in the influence of religious values in places like Russia and, of course, the Middle East. (Details can be found in John Micklethwait and Adrian Wooldridge’s new book, God is Back–although, for many, he never left.) It is true that not all these changes have elevated the human condition. The point is merely that such change, especially during times of crisis, is possible.

To accomplish this kind of radical change, it is neither necessary nor desirable to imitate devotees of the 1960s counterculture, early socialists, or followers of ascetic religious orders, all of whom have resisted consumerism by rejecting the whole capitalist project. On the contrary, capitalism should be allowed to thrive, albeit within clear and well-enforced limits. This position does not call for a life of sackcloth and ashes, nor of altruism. And it does not call on poor people or poor nations to be content with their fate and learn to love their misery; clearly, the capitalist economy must be strong enough to provide for the basic creature comforts of all people. But it does call for a new balance between consumption and other human pursuits.

There is strong evidence that when consumption is used to try to address higher needs–that is, needs beyond basic creature comforts–it is ultimately Sisyphean. Several studies have shown that, across many nations with annual incomes above $20,000, there is no correlation between increased income and increased happiness. In the United States since World War II, per capita income has tripled, but levels of life satisfaction remain about the same, while the people of Japan, despite experiencing a sixfold increase in income since 1958, have seen their levels of contentment stay largely stagnant. Studies also indicate that many members of capitalist societies feel unsatisfied, if not outright deprived, however much they earn and consume, because others make and spend even more: Relative rather than absolute deprivation is what counts. This is a problem since, by definition, most people cannot consume more than most others. True, it is sometimes hard to tell a basic good from a status good, and a status good can turn into a basic one (air conditioning, for instance). However, it is not a matter of cultural snobbery to note that no one needs inflatable Santas or plastic flamingos on their front lawn or, for that matter, lawns that are strikingly green even in the scorching heat of summer. No one needs a flat-screen television, not to mention diamonds as a token of love or a master’s painting as a source of self-esteem.

Consumerism, it must be noted, afflicts not merely the upper class in affluent societies but also the middle class and many in the working class. Large numbers of people across society believe that they work merely to make ends meet, but an examination of their shopping lists and closets reveals that they spend good parts of their income on status goods such as brand-name clothing, the “right” kind of car, and other assorted items that they don’t really need.

This mentality may seem so integral to American culture that resisting it is doomed to futility. But the current economic downturn may provide an opening of sorts. The crisis has caused people to spend less on luxury goods, such as diamonds and flashy cars; scale back on lavish celebrations for holidays, birthdays, weddings, and bar mitzvahs; and agree to caps on executive compensation. Some workers have accepted fewer hours, lower salaries, and unpaid furloughs.

So far, much of this scaling-back has been involuntary, the result of economic necessity. What is needed next is to help people realize that limiting consumption is not a reflection of failure. Rather, it represents liberation from an obsession–a chance to abandon consumerism and focus on … well, what exactly? What should replace the worship of consumer goods?

The kind of culture that would best serve a Maslowian hierarchy of needs is hardly one that would kill the goose that lays the golden eggs–the economy that can provide the goods needed for basic creature comforts. Nor one that merely mocks the use of consumer goods to respond to higher needs. It must be a culture that extols sources of human flourishing besides acquisition. The two most obvious candidates to fill this role are communitarian pursuits and transcendental ones.

Read the entire article from The New Republic.

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2 Responses to Reexamining the Good Life

  1. A nicely balanced and broad-minded piece indeed! P J O’Rourke’s ‘theory’ of trammelled capitalism would seem close to what Etzioni is advocating, at least as far as the economics-oriented morsels of this analysis are concerned. I don’t think that anybody outside America with a formal financial education would, for a minute, suggest that the savage, unbridled capitalism of the US is something any other nation on earth should emulate.

    Controlled, or trammelled, capitalism is best mirrored in the British or Canadian experiences, and whilst the systems prevalent in these places are short of perfect, they still generate markedly more equitable and just societies than the one observable in the States.

    In conclusion, I would posit that a verily flawless civilisational set-up has yet to manifest anywhere in the world – presumably, such a utopian concept will never factually come to be. What is thus incumbent upon us is to labour with what is presently available as a starting point, and gradually bring about the much-needed ameliorations of the varieties above proposed, in order to right many of the wrongs that plague the international community in these trying times.

    • Like Vikram the word that repeatedly came to mind while reading this article was balanced. A very sensible approach. But who in this culture is interested in sensible? Desires for immediate sense gratification are manufactured by the almost omnipresent advertising that assaults us at every step we take, to enjoy now or never..”grab it while you can”..without ever taking time to weigh the cost/benefit of our actions is the driving force. It is a frenzied madness.

      This mentality can only truly be overcome by the knowledge that we are not these bodies and the results of our present actions follow us beyond bodily death. And more that real happiness is our inherent right as children of God and awaken within us naturally when we choose to live according to the principles He has set out for us, as in the Sri Isopanisad for example.

      I confess to longer holding out any hope of seeing this present society transformed. I seek now only to be transformed myself while helping a few others who will listen see the value of the karma/bhakti yoga way of life.

      “Simple living and high thinking.”

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