ABSTRACT

In this chapter, the evolution of consumption from the Industrial Revolution to the present is discussed in relation to the general pattern of economic development prevailing in the same period. The focus is on the transition from a social system in which only the bare necessities of life could be covered to one in which the majority of people can access a much wider range of goods and services of increasing quality. This transition has been interpreted on the basis of the combined action of growing productive efficiency, growing output variety and growing output quality. The pattern of economic development in this period required the co-evolution of demand and innovation, without which no technological progress could contribute to economic activity. The constant increase in the variety and quality of goods and services contrasts with Keynes’ predictions that the economic problem would be solved and that reduced working hours would allow most people to devote leisure time to ‘higher’ activities. While the above pattern of consumption has contributed to economic development, its maintenance has generated a massive environmental impact.