Introduction

One of the most important views on consumption was adopted by John Maynard Keynes on 1936 when he defined consumption expenditures as an important component of national income. He argued that with rises in income, consumption would also increase, but not as fast, since the propensity to consume more would go down as consumer needs are satisfied. Keynes regarded effective demand by the consumer as the principal vehicle of economic growth.

Consumption clearly contributes to human development when it improves the capabilities of people without adversely affecting the well-being of others, beings as fair to future generations as to the present ones, when it respects the carrying capacity of the planet and when it encourages the emergence of lively and creative communities.

Today’s society, however, has proven Keynes to be wrong. If we only look into the fact that the income needed on US Households in order to fulfill consumption aspirations doubled between 1986 and 1994. The imaginary line that separates needs and luxuries tends to be each day more blurry, thus creating heavy social pressure to maintain high consumption standards.