Prices and quantities: Unsustainable consumption and the global economy

Abstract

The ecological unsustainability of current consumption patterns is now well documented. One aspect of this problem which has not been sufficiently addressed is the growth of “excess consumption” driven by falling goods prices. The index of department store prices have fallen substantially since the early 1990s, in large part because global capital mobility and excess global labor supply has allowed firms to depress wages and avoid paying environmental costs. Consumers have responded by purchasing increasing numbers of these artificially cheap goods. The example of apparel is discussed in some detail, and data from other goods categories are presented. These trends suggest that achieving sustainable consumption in the US is not only a technical issue but will also involve fundamental changes in the global political economy to eliminate the artificially low prices of imported goods.