Because it doesn't.
These people wouldn't just hoard their money because there is no ad telling them what to buy...
They'd just be exercising their own agency, rather then cokes, or nikes.
These people wouldn't just hoard their money because there is no ad telling them what to buy...
They'd just be exercising their own agency, rather then cokes, or nikes.
If there were no advertising, not many people would know about—let alone buy—video games. But dollar for dollar video games are much better for them than alternatives like drugs.
> not many people would know about—let alone buy—video games
So you are saying in the absence of manipulative ads, kids would be consuming drugs rather than games. I highly doubt that. And from personal experience, my brother is a Minecraft addicted nutter because of peers pushing him towards it, not advertising. I've never seen ads for Minecraft, yet it is one of the most successful video game properties ever.
wut?
People see an ad, they're more likely buy that thing. If they don't see an ad, they don't buy that thing.
You think people are still going to be spending their money if they aren't talked into buying things? lol.
The economy grows when people spend money. Disincentivizing people from spending money is a good way to make sure the economy dies.
Always be selling. NO exceptions. Coffee is for closers.
If 1 dollar is spent 5 times a year, that economy has a higher GDP than when that 1 dollar is spent 4 times a year.
Advertising makes sure that money is spent quickly, to increase the GDP by increasing the velocity of money in an economy.
If you get rid of advertising, you slow down the economy.
Do people spend money without advertising?
I would say, yes they do. People have intrinsic wants and needs. Why would I so fulfilling them, because of a lack of extrinsic wants and needs?
Edit: also aren't you just trying to optimise to what is measured. GDP goes up, and that's beneficial because? Greenspan says so?
I get that it's not what you want to hear, but that's your problem to deal with, not mine.
"Wishing and hoping" that advertising doesn't work, doesn't actually make it so. Just because you don't like something, doesn't mean it doesn't work.
The advertising industry is profitable because it's an arms race. Companies have to advertise because their competitors already are doing.
If all industries agreed to limit their ad spending, those trillions could become mere billions overnight, and the marginal revenue decreases would be more than offset by the decreased spending. But such coordination is impossible in a competitive economy, because any defector will reap huge rewards.
But in reality that does not actually matter either. Like I said, there is very little fiscal responsibility in people - at least in the US - predominantly a product of culture. The money people would have spent on random useless object advertised on TV 1 would instead be spent on personal want 2. The practical effect of advertising is that it is simply redirecting dollars that would have gone to those with smaller advertising budgets to those with larger budgets. The trillion dollar industry exists as an arms race where increasing product quality or diversifying is less effective - because people are already broke, and net wealth is declining, you cannot compete honestly as effectively in product anymore. If you try that, you simply lose to the guy who had more advertising out there using psychological techniques to manipulate people into buying the inferior product over yours, and that is where the wishing comes in, people wish people were more rational, but we are not, and constant bombardment of advertising only wastes money to let the fattest cats maintain sales margins.
We aren't arguing whether coke tastes nice, we are arguing whether you need to drink it...
I think you need to reread my comments.
I can agree with that, but I wonder how much it matters, in different scenarios. For example, if instead of hiring someone to cut my lawn (increasing GDP), I cut my lawn myself. Since GDP is lower, is the world therefore a worse place than it might have been?
I still don't understand why a slower economy is a bad thing. Poverty and starvation is definitely a bad thing, climate change is definitely a bad thing, but a slow economy?
Just a tought I have sometimes. Sometime in the future we will need to think another way to measure economic improvement.