Conventional wisdom suggests that we should try to expand supply to meet demand, so let’s take a moment to consider consumer demand as a driving force.
Consumer demand would have no taxes, the death penalty, smoking in public places, and quite possibly Jeremy Clarkson as Prime Minister. Consumer “demand” is a misnomer. No one is demanding anything. It’s simply an indication of what some consumers think would be more convenient for them.
This convenience usually takes the form of cheaper or more immediate.
But as the smoking ban shows, a little education—and a bit of policy courage—can shift behaviour in ways that benefit everyone.
The problem is that suppliers seek to service this urge for cheaper and faster, and in so doing find that something has to give, whether it’s unsustainably drawing nutrients from the soil, employing low-paid foreign labour, manufacturing in a country without the same high standards of legislation, or chopping down an ancient woodland to widen a dual-carriageway.
People don’t like to take responsibility for the actions they’re not very proud of, so if they find themselves doing something they’re not really happy about, they will distance themselves from the cause. “Well, I don’t like spraying pesticides on my fields, but the world needs to be fed.” “I’m not pro-nuclear, but we need to keep the lights on.” “There are more cars on the road, so we have to make the road bigger.”
Rather than accept this framing, let’s work on providing better solutions.
Consumer demand would not have banned smoking in public places, nor would it have cut down on plastic bag consumption in supermarkets. These required a different kind of intervention.
What suppliers generally fail to realise is that the individual consumer is also part of a social group, which has a different set of desires and motives.
Anything which allows an individual to act for a social good allows the individual to feel good about themselves, since they have acted virtuously—suppressing their own immediate and selfish desires for the benefit of the group. The benefits from this are frequently longer lasting and of greater total value. Buying a carrot from your local farmers’ market may be higher cost, but it makes you an active part of the community, gives feelings of belonging, creates local jobs, keeps money in the local economy, and consumes far less energy than an imported one.
Acting nobly and wisely allows the individual to feel good about themselves, and commands respect and elevated status.
So what we call “consumer demand” is often a way of absolving ourselves of responsibility for pandering to the lowest of human characteristics—and failing to recognise the opportunity suppliers have to allow consumers to feel genuinely good about themselves, and to increase social capital.
Tell us that there are hidden consequences of our consumerist desires, and we will behave like reasonable adults and work with you to find a better way. Don’t hide the truth from us by dangling two-for-one offers in front of our noses. Be honest with us and we will work together to build something better.