Effects of conspicuous consumption

Conspicuous consumption is the excessive purchase and display of luxury goods in order to create a public image of wealth and success. It is a form of status-seeking behavior and is also known as “showing off” or “keeping up with the Joneses.” The effects of conspicuous consumption are varied, but largely negative. Financial ramifications include increased debt and decreased savings, as large amounts of money are spent on luxury goods, often with no real return on the investment. This financial mismanagement can lead to serious financial struggles, especially if not corrected before the situation becomes dire. Another effect of conspicuous consumption is increased pressure to maintain a certain lifestyle. In some cases, this pressure can lead to lifelong, compulsive spending that can lead to serious debt and financial instability. On a deeper, psychological level, people who engage in conspicuous consumption can develop a false sense of self-worth that is linked to possession and status. This can lead to feelings of low self-esteem and anxiety when not able to live up to the expectations of their peers. Finally, conspicuous consumption hurts people who are unable to keep up with the extravagance of their peers. These individuals can develop feelings of envy, stress, and discontentment. This dynamic is socially inequitable and can lead to divisions within a society.