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screenpurchasing.2
TheUnexpectedDeclineofLeisure
Some of the countrys most popularleisure activities
havebeenturnedintoextendedshoppingexpeditions.
Nationalparks,musicconcerts,andartmuseumsare
JULIETB.SCHUR
nowacquisitionopportunities.WhentheSouthStreet
AMemberofThePerseusBooksGroup SeaportMuseuminNewYorkCityopenedintheearly
19805asacombinationmuseumshoppingcenter,its
directorexplainedthecommercializationasabowto
reality:Thefactisthatshoppingisthechiefcultural
CHAPTER5
activityintheUnitedStates."Americansusedtovisit
TheInsidiousCycleofWorkandSpend Europetoseethesightsormeetthepeople.NowBorn
to Shop" guides are replacing Fodor and Baedeker,
completewithwalkingtoursfromFerragamotoFendi.
Evenislandparadises,wherewegotogetawayfrom
SHOP'TILYOUDROP
it all, are not immune: witness titles such as
Shopping in Exciting Australia and Papua New
Guinea.3
Weliveinwhatmaybethemostconsumeroriented
societyinhistory.Americansspendthreetofourtimes Debt has been an important part of the shopping
asmanyhoursayearshoppingastheircounterparts frenzy.Buyingiseasierwhenthere'snorequirement
in Western European countries.l Once a purely to pay immediately, and credit cards have seduced
utilitarian chore, shopping has been elevated to the manypeoplebeyondtheirmeans:Iwantedtobeable
statusofanationalpassion. topickupthetabfortenpeople,ortakeacabwhenI
wanted. I thought that part of being an adult was
Shopping has become a leisure activity in its own
beingabletogotoarestaurant,lookatthemenu,and
right. Going to the mall is a common Friday or
goinifyoulikethefood,notbecauseyou'relookingat
Saturdaynightsentertainment,notonlyfortheteens
theprices.Thisyoungmanquicklyfoundhimselfwith
whoseemtoliveinthem,butalsoforadults.Shopping
$18,000ofcreditcarddebt,andrealizedthatheand
is also the most popular weekday evening outof
hiswifecouldhavegonetoEuropelastyearon[the]
homeentertainment."Andmallsareeverywhere.Four
interestalone."Forsomepeople,shoppinghasbecome
billion square feet of our total land area has been
an addiction, like alcohol or drugs. Enabled" by
converted into shopping centers, or about 16 square
plastic, compulsive shoppers spend money they dont
feet for every American man, woman, and child.
have on items they absolutely cant"do without and
Actually, shopping is no longer confined to stores or
never use. The lucky ones nd their way to selfhelp
malls but is permeating the entire geography. Any
groups like Debtors Anonymous and Shopaholics
phonelineisaconduittothousandsofproducts.Most
Limited. And for every serious compulsive shopper,
homesare virtual retailoutlets, with cableshopping
therearemanymorewithmildhabits.LindaWeltner
channels, mailorder catalogues, tollfree numbers,
was lucky enough to keep her addiction within
and computer hookups. We can shop during lunch
manageable nancial bounds, but still her mindless
hour, from the ofce. We can shop while traveling,
shopping" grew into a troubling preoccupation . . .
fromthecarsWecanevenshopintheairport.Where
whichwasimpoverishing[her]life."4
Theshoptilyoudropsyndromeseemedparticularly declining
active during the 19805, a decade popularly wages
representedasonelongbuyingspree.Intheveyears have
between 1983 and 1987. Americans purchased 51 been
millionmicrowaves,44millionwashersanddryers,85 mainly a
million color televisions, 36 million refrigerators and
freezers, 48 million VCRs, and 23 million cordless
telephonesall for an adult population of only 180
million.5
middleclass,andpoorhaveabouttwiceasmuchin
thesedwellings.Thetypical19505familyoffourhas
thewayofincomeandmaterialgoods(seegure5.1). 6
shrunk to an average of 2.6 persons, so that each
Ofcourse,theconsumerboomofthe1980s has been individualnowhasasmuchspaceasanentirefamily
different from the earlier decades in one important of four occupied in 1950. Fifty years ago, only 20
wayconsumerismhasbeenfarmoreanalfairofthe percent of all houses had more rooms than people
aluentthetop20or40percentofthepopulation. livinginthem;by1970,over90percentofourhomes
Incomebecamefarlessequallydistributedduringthis werespaciousenoughtoallowmorethanoneroomper
decade, and many people, especially those in the person.7ThesizeandqualityoftheAmericanhousing
bottom quarter of the population, have experienced stockhasnotbeenreplicatedanywhereelseonearth.
substantialdeclinesintheirstandardofliving.Others
Houses are not only bigger, they are also more
havemaintainedtheirincomesonlybyworkinglonger
luxuriouslyequipped.Aslateas1940,30percentstill
hours. Had hours not risen, the average American
had no running water, and 40 percent were without
workers annual earnings would have been lower at
ushtoilets.Todayvirtuallyallhouseshaveboth,and
the close of the decade than when it began. Still,
threequartersofsinglefamilydwellingshavetwoor
more bathrooms. In 1940, less than 45 percent of a
Witold Rybczynski, Iiving Smaller," Atlantic Monthly, February
homes had electric refrigerators. Now all do. 1991,6768.
notwithstanding,overallratesofhomeownershiphave 1990edition,table723,1280.
procedureistobeginfromthetopoftheincomescale
The worries of the bottom quarter of the population
and move down to the middle. The top 20 percent,
are a reection of the recent surge in inequality. In
whose average income in 1990 was $105,000, over
earlier decades, the benets of prosperity were far
three times the nations median, will certainly be
more evenly distributed, extending even to the least
included in the ranks of the afuent. The next 20
welloffsegmentsofsociety.Inthemid19705,alarger
percent,whoreceiveonaverage$45,000ayear,should
proportionofthepopulationcouldhavebeenidentied
also be counted. Adding 10 percent more, or exactly
asmiddleclass"orabove,perhapsasmuchastwo
halfthepopulation,wouldbringus,inincometerms,
thirds. At that time, many workingclass families,
allthewaydowntoabout$31,000.
often by dint of considerable overtime hours, were
Although$31,000isinthemiddleofthedistribution, managingamiddleclasslifestyle.Theynancedtheir
itisnolongerasufcientincometoputafamilyinto own homes and bought nice cars, sometimes modest
the middle class. Especially for young families, with vacation places. Many survived on one income. This
heavychildcareorhousingexpenses,itisinadequate. hasnowchanged,aslucrativemanufacturingjobsfor
Amongtheblackmiddleclass,responsibilityforpoorer menhavedisappeared.The19805havealsobroughta
relativeshasputatremendousstrainonearnings,so substantialgrowthinthefractionofthepopulation
thatevenadecentincomeoftencantprovideadecent livingonthemargins,strugglingtogetby.According
lifestyle.0ntheotherhand,forasinglepersonwho to a 1989 Gallup Poll, 13 percent of those surveyed
ownsahousethatispaidfor,$30,000orevenlessmay reported that there were times during the last year
when they did not have enough money to buy food.
Higherproportions(17percentand21percent)didnot qualityoflife.Thecompactdiscraisestheenjoyment
have enough income for clothes and medical care. of the music lover; the highperformance en gine
Amongpeopleofcolor,theproportionsarefarhigher, makesthecarbuffhappy;andthefashionplateloves
exceeding a third among AfricanAmericans. And towearadesignersuit.
becausethepollreachesonlythosewithhomes(and
telephones),thesenumbersareunderstated.l2 Butwhenweaddupalltheitemsweconsume,and
consider the overall impact, rather than each in
Manyofthesepeoplecannotworklonghoursevenif isolation,thepicturegetsmurkier.Thefartherweget
they want to because their jobs are parttime or fromtheonerousphysicalconditionsofthepast,the
intermittent. They may not even have employment, more ambiguous are the effects of additional
either because they cannot nd it or be cause they commodities. The less necessary and more
cannot afford child care. Among those who do have luxurious the item, the more difcult it is
jobs,hourlypayisverylow;longhoursormultiplejobs automatically to assume that consumer purchases
arenecessaryjusttomakeasubsistenceincome.They yieldintrinsicvalue.
areclearlynotworkinginordertosustainamiddle
classlifestyle.Eventhosewithlowincomes,however, In an era when the connections between perpetual
are not free from pressures to consume. Television, growthandenvironmentaldeteriorationarebecoming
advertising, peer competition, and the ubiquitous moreapparent,withthequalityofpubliclifedeclining
example of the economically more fortunate provide in many areas (public safety, decline of community,
continualtestamentstothevalueofhighliving.The failing education system), shouldnt we at least step
poor are not so much adherents to an alternate backandreexamineourcommitmenttoevergreater
(antimaterialist)setofvalues,astheyareunsuccessful quantities of consumer goods? Do Americans need
atthesamegameeveryoneelseisplaying.Farmore highdenition television, increasingly exotic
thaninthepast,middleclassculturehasinsinuated vacations,andclimatecontrolintheirautos?
itselfthroughoutthesociety.Ifthey'renottrappedin
How about hundreddollar inatable sneakers, fty
workandspend,itsmorebecausetheycantthanthat
dollarwrinklecream,ortheeverpresent(butrarely
theywont.
used)stationarybicycle?Agrowingfractionofhomes
arenowequippedwithjacuzzis(orsteamshowers)and
satellitereceivers.Oncewetakethebroaderview,can
THECREATIONOFDISCONTENT we still be so sure that all these things are really
makingusbetteroff?
Thedebatesofthe19205clearlylaidouttheoptions
available to the nation. On the one hand, the path THEPITFALLS0FCONSUMERISM
advocated by labor and social reformers: take
productivity growth in the form of increases in free The consumerism that took root in the 19205 was
time, rather than the expansion of output; limit premisedontheideaofdissatisfaction.Asmuchasone
private consumption, discourage luxuries, and has,itisneverenough.Theimplicitmentalityisthat
emphasizepublicgoodssuchaseducationandculture. thenextpurchasewillyieldhappiness,andthenthe
On the other hand, the plan of business: maintain next. In the words of the babyboom writer, Katy
currentworkinghoursandaimformaximaleconomic Butler itwas thenew couch, the quieterstreet, and
growth. This implied the encouragement of thevacationcottage:Yethappinessturnedouttobe
discretionary" consumption, the expansion of new elusive. Today's luxuries became tomorrow's
industries, and a culture of unlimited desires. necessities,nolongerappreciated.WhentheJoneses
Productionwouldcometofillavoidthatithasitself also got a new couch or a second home, these
created.29 acquisitions were no longer quite as satisfying.
Consumerism turned out to be full of pitfaUsa
Itisnotdifculttoseewhichalternativewasadopted. viciouspatternofwantingandspendingwhichfailed
Between1920andthepresent,thebulkofproductivity todeliveronitspromises.
advance has been channeled into the growth of
consumption. Economist John Owen has found that The inability of the consumerist life style to create
between1920and1977,theamountoflaborsupplied durable satisfaction can be seen in the syndrome of
over the average Americans lifetime fell by only 10 keeping up with the Joneses." This competition is
percent;andsince1950,therehasevenbeenaslight based onthe factthat it is notthe absolute level of
increase.Theattitudeofbusinessmenwascrucialto consumption that matters, but how much one
thisoutcome.Asemployers,theyhadstrongreasons consumes relative to one's peers. The great English
forprefeninglonghours,asIarguedinchapter3.As cconomistJohnMaynardKeynesmadethisdistinction
sellers, they craved vigorous consumption to create overfiftyyearsago:[Needs]fallintotwoclasses
markets for their products. Iabor proved to be no those which are absolute in the sense that we feel
matchfortheeconomicandpoliticalpowerofbusiness. them whatever the situation of our fellow human
beings may be, and those which are relative only in
Finally, we should not underestimate the appeal of that their satisfaction lifts us above, makes us feel
consumptionitself.Theworkingclassesandthepoor, superiorto,ourfellows."Sincetheneconomistshave
particularlythosemigratingfromEuropeortherural inventedavarietyoftermsforkeepingupwiththe
United States, grew up in conditions of material Joneses":relativeincomeorconsumption,positional
deprivation.Thearrayofproductsavailableinurban goods,"orlocalstatus."AbrandnewToyotaCorolla
may be a luxury and a status symbol in a lower is less of a relative" good than other commodities,
middleclass town, but it appears paltry next to the thentruewelfarecouldbegainedbyhavingmoreofit,
BMWsandMercedesthatllthedrivewaysofthe andworryinglessaboutwhattheJonesesarebuying.
fancy suburb. A 10percent raise sounds great until
youndthatyourcoworkersallgot12percent.The Itsnoteasytogetofftheincometreadmillandintoa
cellularphone,furcoat,or(llintheblank)givesalot new,moreleisuredlifestyle.Mrs.Smithwontdoiton
ofsatisfactiononlybeforeeveryoneelsehasone.Inthe her own, because itll set her back in comparison to
wordsofone19805investmentbanker.Youtendto Mrs. Jones. And Mrs. Jones is just like Mrs. Smith.
liveuptoyourincomelevel.Youseeitinrelationto TheyaretrappedinaclassicPrisonersDilemma:both
thepeopleofyourcategory.Theyrelivinginacertain wouldbebetteroffWithmorefreetime;butwithout
way and youwanttolive inthatway. You keepup cooperation,theywill stick to the long hours, high
with other people of your situation who have also consumptionchoice.33 Wealsoknowtheiremployers
leveragedthemselves."32 won't initiate a shirt to more leisure, because they
preferemployeestoworklonghours.
Overtime,keepingupwiththeJonesesbecomesareal
trapbecause the Joneses also keep up with you. If A second vicious cycle arises from the fact that the
everyonesincomegoesupby10percent,thenrelative satisfactionsgainedfromconsumptionareoftenshort
positionsdontchangeatall.Nosatisfactionisgained. lived. For many consumption can be habit forming.
Themoreofourhappinesswederivefromcomparisons Likedrugaddictswhodevelopatolerance,consumers
with others, the less additional welfare we get from need additional hits to maintain any given level of
general increases in incomewhich is probably why satisfaction.34Theswitchfromblackandwhitetocolor
happiness has failed to keep pace with economic television was a real improvement when it occurred.
growth. This dynamic may be only partly conscious. But soon Viewers became habituated to color. Going
Wemaynotevenbeawarethatwearecompetingwith back to black and white would have reduced well
theJoneses,orexperienceitasacompetition.Itmay being, but having color may not have yielded a
beassimpleasthefactthatexposuretotheirlatest permanently higher level of satisfaction. Telephones
lifestyleupgrade"plantstheseed inourown mind are another example. Rotary dialing was a major
thatwemusthaveit,toowhetheritbeaEuropean improvement. Thencametouchtone,whichmade us
vacation, this years fashion statement, or piano impatient with rotaries. Now numbers are
lessonsforthechildren. preprogrammed and some people begin to nd any
dialingachore.
Inthechoicebetweenincomeandleisure,thequestfor
relativestandinghasbiasedustowardincome.Thats Our lives are lled with goods to which we have
becausestatuscomparisonshavebeenmostlyaround becomesohabituatedthatwetakethemforgranted.
commoditiescars, clothing, houses, even second Indoorplumbingwasonceagreatluxuryandstillis
houses. If Mrs. Jones works long hours, she will be inmuchoftheworld.Nowitissoingrainedinourlife
abletobuythesecondhome,thedesignerdresses,or stylethatwedontgiveitasecondthought.Thesame
the fancier car. If her neighbor Mrs. Smith opts for holdstrueforallbutthenewesthouseholdappliances
morefreetimeinstead,hertwocargarageandwalkin stoves,refigerators,andvacuumcleanersarejustpart
closetwillbehalfempty.Aslongasthecompetitionis ofthe landscape. We way pay great attentiontothe
moreorientedtovisiblecommodities,thetendencywill kindofautomobilewedrive,butthefactofhavinga
be for both women to prefer income to time off. But carissomethingadultsgrewaccustomedtolongago.
oncetheybothspendtheincome,theyrebacktowhere
Theprocessofhabituationcanbeseenaspeoplepass
theystarted.Neitherisrelative?betteroff.iffreetime
through life stagesfor example, in the transition
fromstudentlifetoarstjob.Thegraduatestudent These are not new ideas. Economists suchas James
makes $15,000 a year. He has handmedown Duesenberry,EdwardSchumacher,FredHirsch,Tibor
furniture, eats at cheap restaurants, and, when Scitovsky,RobertFrank,andRichardEasterlinhave
traveling long distances, nds a place in someone explored these themes. Psychologists have also
elsescar. Aftergraduationhegets ajob andmakes addressedthem,providingstrongsupportforthekinds
twice as much money. At rst everything seems
luxurious. He rents a bigger apartment (with no ofconclusionsIhavedrawn.Mypurposeistoadda
roommates),buyshisowncar,andstepsupanotchin dimensiontothisanalysisofconsumptionwhichhas
restaurantquality.Hisformerrestauranthauntsnow heretofore been neglectedits connection to the
seem unappetizing. Hitghin a ride becomes too incentive structures operating in labor markets. The
inconvenient.Asheaccumulatespossessions,thelarge consumption traps I have described are just the flip
apartmentstartstoshrink.Innottoomanyyears,he side of the bias toward long hours embedded in the
hasbecomehabituatedtotwiceasmuchincomeandis production system. We are not merely caught in a
spending the entire $30,000. It was once a princely patternofspendandspendtheproblemidentiedby
sum,which made him feel rich.Nowhefeelsit just manycriticsofconsumerculture.Thewholestoryis
covers a basic standard of living, without much left thatwework,andspend,andworkandspendsome
overforluxuries.Hemaynotevenfeelanybetteroff. more.
Yettogobackto$15,000wouldbepainful.Overtime,
further increases in income set in motion another
round of the same. He becomes dissatised with CAUSESOFTHEWORKANDSPENDCYCLE
rentingandneeds"tobuyahome.Travelbycartakes
toolong,soheswitchestoairplanes.Histastesbecome TheironyinalltheconsumingAmericansdoisthat,
more discriminating, and the aver age price of a whenasked,theyrejectmaterialistvalues.TheGallup
restaurantmealslowlycreepsupward.Somethinglike Poll recently asked respondents to choose what was
thisprocessiswhyAmericansmaking$70,000ayear most important to themfamily life, betterment of
endupfeelingstretchedanddiscontented.35 society,physicalhealth,astrictmoralcode,andsoon.
Amongalistofnine,thematerialistoptionhavinga
Of course, part of this isa lifecycle process. As our nicehome,carandotherbelongings"rankedlast.In
young man grows older, possessions like cars and a second survey, respondents ranked having nice
housesbecomemoreimportant.Butthere'smoretoit things" twentysixth in a list of twentyeight. (Only
than aging. Like millions of other American opposing abortion and being free of obligations were
consumers, he is becoming addicted to the lesspopular.)Overtwothirdsofthepopulationsaysit
aocoutrementsofafuence.Thismaywellbewhythe would welcome less emphasis on money. Yet
doublingofpercapitaincomehasnotmadeustwiceas behavior is often contrary to these stated values.
welloff.InthewordsofpsychologistPaulWachtel,we Millions of working parents see their children or
havebecomeanasymptoteculture...inwhichthe spouses far less than they should or would like to.
contributionofmaterialgoodstolifesatisfactionhas Working" mothers complain they have no time for
reached a point of diminishing returns. . . . Each themselves. Yolunteer work is on the decline,
individual item seems to us to bring an increase in presumably because people have little time for it.
happiness or satisfaction. But the individual EmployedAmericansspendlonghoursatjobsthatare
incrementsmeltlikecottoncandywhenyoutrytoadd adversely affecting their healththrough injury,
themup."36 occupationally induced diseases, and stress. My
explanation for this paradoxical behavior is that
people are operating under a powerful set of con
straints: they are trapped by the cycle of workand process starts again. The company olfers income,
spend.37 whichtheemployeespendsand becomesaccustomed
to.Thisinterpretationisconsistentwiththehistoryof
Workandspend is driven by productivity growth. thelasthalfcentury.Annualproductivitygrowthhas
Whethertheannualincrementis3percent,asitwas made possible higher incomes or more free time.
formuchofthepostwarperiod,orless,asithasbeen Repeatedly,thebulkoftheproductivityincreasehas
in recent years, growth in productivity provides the beenchanneledintotheformer.Consumptionhaskept
chance either to raise income or to reduce working pace.
hours. This is where the cycle begins, with the
employers reaction to the choice between time and Whatdrivesthiscycleofworkandspend?Oneview
money.Usuallyacompanydoesnotofferthischoice thatofneoclassicaleconomictheorycontendsthatit
toitsemployeesbutunilaterallydecidestomaintain ismotivatedbythechoicesofworkers.Workershave
existinghoursandgiveapayincreaseinstead.Aswe prior(andxed)attitudesabouthowvaluableincome
haveseen,forfortyyears,onlyanegligibleportionof istothemandhow muchtheydislikework. Onthe
productivity increase has been channeled into free basis of these attitudes they select the number of
time.Usingproductivitytoraiseincomeshasbecome hours they want to work. Firms are passive and
the rmly entrenched default option." One might willingtohireworkersforwhateverquantityofhours
imagine that where wages are set by collective theychoose.Bythisaccount,iffactoryworkersinthe
bargainingagreementsemployeeswouldhavemoreof nineteenthcenturytoiledtwelve,fourteen,or.sixteen
asayinthechoicebetweenincomeandtime.Butless hours a day, it was because they"preferred" this
than 20 percent of the workforce is unionized. scheduleaboveallothers.IfU.S.workershaveadded
Furthermore, as union negotiators will attest, amonthontotheirannualworktime,itisbecausethey
employersarefrequentlyercelyresistanttogranting want the extra income. At tempts to limit hours of
concessionsonhoursandjealouslyguardtheauthority labor will make employees worse, not better off.
to set schedules. But even if a rm is willing, the Invariably,workersgetwhattheywant.39
reducedworktimeoptionitofferswilloftenbeworth
less (in dollar terms) than a straight pay increase, I turn theneoclassical analysis on its head, arguing
becauseoftheextracostsincurred,suchasadditional thatworkerswantwhattheyget,ratherthangetwhat
fringe benetsfornew employees. Thecompany will they want. My starting point is rms rather than
try and force the employees to bear the expenses individualworkers.Firmssetthehourstheyrequireof
associatedwithshorterworking hours. Soevenwith theiremployees.Associatedwiththosehoursisalevel
collectivebargaining,thechoicewillbeskewedagainst ofincomethatdeterminesworkersconsumptionlevel.
shorterhours. As a result of habit formation and relative status
considerations, people develop preferences to
Once a pay increase is granted, it sets off the accommodate that level of spending. Atri tudes
consumption cycles I have described. The additional toward consumption are not preordained but are
income will be spent. (The personal savings rate is actually formed in the process of earning and
currentlyonly4.5percentofdisposableincome.) 38The consuming itself.40 These two interpretations
employeewillbecomehabituatedtothisspendingand workersgetwhattheywantorwantwhattheyget
incorporateitintohisorherusualstandardofliving. arethepolarcases.Accordingtoneoclassicaltheory,
Gaining free time by reducing income becomes attitudestowardconsumptionareindependentofthe
undesirable, both because of relative comparisons actualexperienceofspending,andrmsarepassive.
(JonesesversusSmiths)andhabitformation.Thenext Inmyinterpretation,rmssethoursandworkersdo
year,whenanotherincreaseinproductivityoccurs,the mostoftheadjusting.
AssessingtheNeoclassicalView The second major point of difference between my
approach andthe neoclassical involvesthe nature of
The crux of the neoclassical story is that workers preferences. Neoclassical economists point to worker
determine hours. But do they? Not according to the attitudesasevidencethatthemarketisdeliveringthe
evidence. Every study I have seen on this topic has hours they want. Results from a 1985 survey are
foundthatworkerslackfreechoiceofhours.Theyare typical:askedwhethertheywouldprefermore,fewer,
limited in both how much and how little they can or just the hours they were currently working,
work.Inonesurveyofmaleheadsofhouseholds,85 accompanied by commensurate changes in income,
percentreportedthattheydidnothavefreechoiceof abouttwothirdsofworkersreportedsatisfactionwith
hours. Asecond study (of married men) again found theircurrenthours/incomechoice.43
that85percentwerefacedwiththechoiceofeitherno
joborajobathoursthatwerenotthosetheywould Thisevidencemaysoundcompelling.Butimagine,for
choose.Themenwantedshorterhours,butallthejobs a moment, what the responses would be like in the
were fulltime. The other existing studies report light of my interpretation, and workers want what
consistent results: workers face constraints on their theyget.Theresultswouldlookjustthesame,inthe
hours of work. Indeed, institutionalist labor sensethatmajoritieswouldexpresssatisfactionwith
economists (oriented to the "real world") have long their
maintainedthatrmschoosehours,givingemployees
a takeitorleaveit option. Now this institutionalist
viewisbackedupbystatisticalevidence.41
Thesendingssupportakeyfeatureoftheworkand
spendcyclethedifferenceinattitudestowardcurrent
andfutureincome.Aswithalltheprevioussurveys,
thisgroupwasunwillingto
Becausethisstudywasconductedovertenyearsago,
we can check to see whether the stated preferences
were actually validated. Did 84 percent of the
populationgainthefreetimetheysaidtheywanted?
Asweknow,theydidnot.Infact,theylostfreetime.
Of course, what has happened since 1978 is
complicated.Someworkers,particularlyyoungerless
educated men, have lost pur chasing power since
1978.Othershavehadstagnantincomes.Butleisure
timedidnotevenincreaseamongthosewithgainsin
income.Infact,hoursincreasedsubstantiallyforthose
groups who both did well in the labor market and
expressed the strongest desires for more time off
women and people in the higherpaid occupational
categories.In1989,whenasimilarsurveywastaken,
theresultsindicatedthatforwardlookingpreferences
forleisurearestillstrong.EightoutoftenAmericans
declaredthattheywouldsacricecareeradvancement
inordertospendmoretimewiththeirfamilies.46
ThetransitionwillbemostabruptforJohn.Fewmen Jane'sswitchtoparttimewillbelesstraumatic.She
workparttime,withtheexceptionofteens,students, will ndmore job possibilities, becausemore women
and some seniors. Among males aged twentyve to work parttime. Her earnings loss will be less,
fortyfour, virtually none (a meager 2.5 percent) because women are already discriminated against in
voluntarily choose parttime schedules. Most report fulltimework.(Themedianhourlywageforwomen
thattheyarenotabletoreducetheirhoursofworkat workingparttimeisalmostthreequartersofthefull
all.49 Andofthosewhodohavethefreedomtowork timewage,comparedwithonehalfformen.)IfJane
fewerhours,itislikelythatonlyasmallpercentage cangethealthinsurancethroughJohnsemployment,
canreducehoursbyasmuchashalf.UnlessJohnhas parttime work may be feasible. But a great deal
truly unusual talents, his employer will probably dependsonhisearningsandbenets.Evenunderthe
refusetosanctionachangetoparttimework.Chances best of assumptions, Jane will have to forgo a wide
arehellhavetofindanewjob. varietyofoccupations,includingmostofthosewiththe
bestpayandworkingconditions.Shewillmostlikely
Given the paucity of parttime jobs for men, John's be relegated to the bottom part of the female labor
choiceswillbelimited.Itwillbealmostimpossibleto markettheservice,sales,andclericaljobswherethe
secure a position in a managerial, professional, or majority of women parttimers reside. Social
administrativecapacity.Mostparttimejobsareinthe conventionandtheeconomicincentivesitcreateswill
servicesector.Whenhedoeslandajob,hispaywill reproduceinequalitiesofgender.Despitetheiroriginal
fallfarshortofwhatheearnedinfulltimework.The intentions,Jane,ratherthanJohn,willendupinpart
medianhourlywagerateamongmaleworkersisabout timeemployment.
$10.50,withweeklyearningsof$450.Asaparttime
worker paid by the hour, his median wage will be Thesearetheobstaclesonthelabormarketsidelow
about$4,or$80aweek.Hewillalsolosemanyofthe wages,fewbenets,andseverelimitationsonchoiceof
benets that went with his fulltime job. Only 15 occupations.Thedominanceoffulltimejobsalsohas
percent of parttime workers are given health effects on the consumption side. Imagine that Jane
insurance.50 Thetotalincome1055Johnwillsufferis andJohnstillwanttocutbacktheirhours,evenunder
likely to exceed 80 percent. Under these conditions, the adverse circumstances I have described. Their
parttimeworkhardlyseemsfeasible. incomewillnowbeverylow,andtheywillbeforcedto
economizegreatlyontheirpurchases.Thiswillaffect
The social nature ofJohn's choice is revealed by the their ability to t in socially. As halftime workers,
dramaofhisattempttogoagainstthegrain.Sincefew they will nd many social occasions too expensive
adultmenchooseparttimework,thereisalmostnone (lunchesanddinnersout,movies).Atrst,friendswill
tobehad.Thesocialconventionoffulltimeworkgives be understanding, but eventually the clash in life
the individual little choice about it. Those who styleswillcreateasocialgap.Theirchildrenwillhave
contemplateashitoparttimewillbedeterredbythe socialdifcultiesiftheydonthaveaccesstocommon
economicpenalty.Theremayevenbemanywhowould
afterschool activities or the latest toys and clothes. rlltime income. There is a limited market for
They'lldropoffthebirthdaypartycircuitbecausethey productsthataredesiredonlybythosewithhalfan
cant alford to bring gis. We can even see these income.Awholerangeofcheapproductsarenoteven
pressureswithfulltime workers, asparentstake on available.
extra employment to live up to neighborhood
standards. After her divorce Celeste Henderson Onlythebetterqualitygoodswillbedemanded,and
workedtwojobstogiveherchildrenthethingstheir hence only they will be produced. We can see this
schoolmateshad.Ms.Henderson'sdaughtersaysher phenomenon in the continual upscaling of products.
mothersavedhertheembarrassmentoflookingpoor We'vegonefromblendertoCuisinart,frompolyester
to the other children.51 For a family with only part tocotton,fromonespeedSchwinntofancytrailbike.
timeworkers,theinabilitytoconsumeinthemanner Rememberthethingsthatwereavailablefortyyears
oftheirpeersislikelytoleadtosomesocialalienation. ago but have disappeared? The semiautomatic
Unless they have a community of others in similar washingmachine.Thehanddrivencoffeegrinder.The
circumstances,droppingdownwillincludeanelement rotary dial telephone. For those who are skeptical
of dropping out. Many Americans, especially those about this point, consider the markets of poor
withchildren,arenotwillingtorisksuchafate. countries. In India, one can nd very cheap, low
qualityclothingatafractionofthepriceoftheleast
Even with careful budgeting, a couple like the Does expensiveitemsintheUnitedStates.Semiautomatic
mayhavetroubleprocuringthebasics(housing,food, washersandstrippeddowncars arethenorm. Ona
and clothing), because the U.S. standard of living is world scale, the American consumer market is very
geared to at least one fulltime income and, upscale,whichmeansthatAmericansneedanupscale
increasingly,totwo.Rentswillbehighrelativetothe incometoparticipateinit.
Doesincome.Inpart,thisisbecauseofpriceincreases
in the last decade. But there is also a more Thestrengthofsocialnormsdoesnotmeanthatthe
fundamental impediment. As I have argued, nature of work cannot be changed. Parttime
contemporary houses and apartments are large and employment could become a viable option for larger
luxurious. They have indoor plumbing, central numbersofpeople.Buttheexistenceofsocialnorms
heating,stoves,andrefrigerators. suggests that change will not come about, as the
neoclassical economist predicts, merely through
Theyhaveexpensivefeaturessuchasclosets,garages, individualsexercisingtheirpreferencesinthemarket.
andindividualbedrooms.Inoursociety,housingmust Where Prisoner's Dilemmas and vicious cycles exist,
conformtolegalandsocialconventionsthatdenethe changerequiresinterventiononasociallevel~om
acceptablestandardofhousing.Thediicultyisthat government, unions, professional associations, and
the social norm prevailing in the housing market is othercollectiveorganizations.
matchedtoafulltimeincome(orincomes). Itisnot
onlythatthecostoflivingishighthesedays.Itisalso
that barebones housing, affordable on only half a
THEPERILSOFHOMOECONOMICUS
salary, is rare. Even if the Does were willing to go
withoutclosets,garages,andcentralheatinginorder The discipline of economics has traditionally
tosavemoney,theywouldbehardpressedtondsuch represented human beings by the construct of homo
adwelling. economicus,oreconomicman.Homoeconomicusisa
simple fellow. He has a set of preferences. 52 And he
Thisproblemiscommontomanygoodsandservices.
aimstomaximizehiswellbeing(denedasutility).
Inaneconomywherenearlyeveryoneworksfulltime,
His behavior is cool and rational, unlike
manufacturers cater to the purchasing power of the
psychoanalyticman(whoisdrivenbycompulsion)or Such a process has serious ramications. We are
sociological man (who is conned by social norms). committed to perpetual growth, yet the world has
Homoeconomicusisanindividual,actingalone,who nite resources. They are already stretched to the
doeswhathedoesbecausehebelievesitisthecourse dangerpoint,aswepolluteourair,land,andwater.
ofactionthatwillbringhimthemostutility.Formy Cantheearthtoleratemorecars,moreBTUs,andthe
purposes,themostimportantpersonalitytraitofhomo felling of more trees? Afuent citizens the world
economicusisthathecanneverbesatiated.Hewill aroundcontinuetotrytoraisetheirownstandardsof
always prefer more to less. Although he can become living,whiletheglobespoormajorityscrapeby(orfail
tiredofanyparticulargood,thereisneverapointat to)withlittleornothing.Ifwelookatsatisfactionasa
whichhavingmoregoodsoverallwillmakehimworse relationshipbetweenwantingandhaving,itbecomes
off.Andbecausemorewillalwaysmakehimbetteroff, clear that there are two ways to be satised. Inthe
hisdesiresareinnite. economic view, satisfaction comes om increasing
what one has. Wut couldnt one just as well gain
Some economists have made grand claims for homo happinessbyreducingdesires?
economicus, asserting that he is an adequate
representationofhumanbeirrgsinallsocieties,atall This is the Zen" path to happiness. It warns that
times. Stone age" peoples, slaves, housewives. and hedonisticpleasuresareshallowandaddictive.Itasks
medievalpeasantsareassumedtolivebyhismaxims. forrenunciation,notnecessarilyofmaterialgoods,but
of materialism. In the words of anthropologist
Theseclaimshaveledtogreat(andunresolved)debate MarshallSahlins,thispathholdsthatapeoplecan
among anthropologists, psychologists, historians, and enjoy an unparalleled material plentywith a low
economists.(ItshouldbeclearbynowthatIbelieve standardofliving."Thekeyistokeepdesiresequally
modernconsumerismislearnedbehavior,ratherthan low. English economist Edward Schumachers
a trait of human nature equally appli cable to Buddhist economics" produces extraordinarily
primitives and peasants.) But one thing that is satisfactoryresults"omamazinglysmallmeans.53
probably not controversial is the realworld example
from which homo economicus has been drawn. If he I have already identied many who have exhibited
describes anyone at all, it is the twentiethcentury limited material desires: the fourteenthcentury
Americanconsumer.Herewendthequintessential English laborers who responded to higher wages by
materialisthighly focused on the acquisition of doinglessoftheunpleasantworkthatwastheirlotin
goods,shamelesslyhedonistic,andslavishlydevotedto life;theearlyAmericanworkerswhocravedtimeaway
thepropositionofnonsatiation. omworktoeducatethemselves;thetradeunionists
andreformersofthe19205whoforesawandforswore
The problem with homo economicus is that consumerism. More recently, the affluence of the
nonsatiationshadesalltooeasilyintononsatisfaction. 19605helpedcreateayouthculturethatshunnedthe
Oncehesees(astheperspicaciouseconomicmandoes) materialismoftheAmerican wayof life.InWestern
thathavingmorewillmakehim"betteroff,"itishard Europe today, popular green" movements reject
tokeepfromwantingit.Ifmoreisbetter,discontent growthandconsumerism.
willnotbefarbehind.Discontentisrelieved,overand
over again, by acquiring more. Where desires are The meaning of consumption itself has already gone
innite,theprocessofacquisitionwillbecomeinnite through one major transformation, om its original
itself. negativemeaningofeatup,devour,waste,destroy."54
Today,asecondtransformationwouldentailnewways
of wanting, buying, owning, using, and discarding.
Insteadofcravingnoveltyinconsumergoods,wecould
cultivate attachments to possessions thatwere high The origins of modern time consciousness lie in the
qualityandlonglasting,fromclothestoautomobilesto development of a capitalist economy. Precapitalist
gadgets.Wewouldusethingsuntiltheyworeout,not Europe was largely timeless"or, in historian
untiltheywentoutoffashionorwejustgrewtiredof Jacques1eGoswords,eeofhasteandcarelessof
them.Foresightwouldbenecessary,inordertoavoid exactitude." As capitalism raised the price of time,
new products that ultimately leave us no better off. people began to think of time as a scarce resource.
Maybe the Joneses and the Smiths could even Indeed,theideologyoftheemergingmarketeconomy
cooperate rather than compete. If they were less waslledwithmetaphorsoftime:savingtime,using
concemed about acquiring, the two families could timewisely,admonitionsagainstpassingtime.The
share expensive household items that are used only workethicitselfwasinsomesenseatimeethic.When
intermittently. Benjamin Franklin preached that time is money, he
meant that time should be used productively.
WhilemostAmericansmayndithardtounderstand Eventually capitalism did more than make time
that such changes are in their interest, many who valuable.Timeandmoneybegantosubstituteforeach
have made them are condent that getting off the other.Franklin'saphorismtookonnewmeaning,not
consumertreadmillyieldsadeeperandtruersenseof only as prescription, but as an actual description.
wellbeing. When Linda Weltner, a former shopping
Moneybuystime,andtimebuysmoney. Timeitsegf
addict,stoppedbuying,shedidn'tsufferpangsofself
hadbecomeacommodity.l
denial"butfeltlledtothebrim.Herlifehasbecome
far richer. And not only will we help ourselves. Moneylendingwastherstexampleofthesaleoftime,
Forswearingabankruptingconsumeristpath,thenew itsnaturerevealedinthecolloquialtobuyontime.
consumerofthetwentyrstcenturywillbeinafar Thenthesaleoftimedevelopedinthelabormarket,
better position to address issues of global inequality and became, for most people, the area where the
and move us off our current collision course with impacthasbeengreatest.Todaytheprincipleofsaleof
nature. But to do these things, we must be open to labor time is thoroughly accepted. But this is the
major changes in how we run our businesses, resultofalongandcontentiousprocess.AstheBritish
households, and the connections between them. And historian Edward Thompson has argued, workers
we must organize ourselves to make those changes struggled at rst from a traditional ideology of
happenin spite of alltoocertain opposition om timelessness against the very idea of time. They
those who benet from the status quo. In the next resentedemployers'attemptstoimposetimeandtime
chapter,Itakeupthesestructuraltransformations. discipline.Asdecadespassed,theystruggledoverthe
ownershipoftimehowmuchwastheirs,howmuch
the bosss. And today, many ght for overtimethe
CHAPTER6 righttosellasmuchtimeastheycan.2