In the late 19th century, particularly in Britain and the
US, we see the birth of what historians often call the "Mass Market."
Here is how that transition actually functioned:
This happened when skilled workers got
together to form trade unions and used their muscle to demand and fight for
better pay and better workng conditions. Industry and 'employers' benefitted as
much as the workers because workers became consumers!
From Subsistence to Surplus
Before this era, most working-class income
went entirely to "the basics": bread, rent, and fuel. As trade unions
gained leverage and productivity increased, real wages rose. For the first
time, a "labor aristocracy" of skilled workers had disposable income.
The 1870s-1890s Shift:
Prices for food and imported goods actually
dropped (thanks to railways and steamships), meaning that even if a worker's
pay stayed the same, their "purchasing power" went up.
The "Saturday Half-Holiday":
Winning better conditions wasn't just about money; it was about time. You can't
be a consumer if you're in a factory 80 hours a week. The shortened work week
created the "leisure industry."
The Drivers of the Consumer Boom
Once these workers had a few extra shillings
or dollars, the economy pivoted to meet them. This led to several massive
structural changes:
1. The Department Store
Stores like Harrods in London or Macy’s in
New York began catering to more than just the ultra-wealthy. They turned
shopping into an event. For the skilled worker’s family, buying a manufactured
clock or a set of tea china became a badge of respectability.
2. Branding and Packaging
Before this, you bought soap or flour in
bulk from a nameless barrel. With the rise of the consumer-worker, companies
started branding (think Kellogg’s or Lipton Tea). They realized that if a
worker has a choice, they will buy the brand they trust.
3. Spectator Sports and Tourism
This is where the "better
conditions" really show up.
Football/Soccer: In the UK, the growth of
professional football leagues was funded almost entirely by the gate money of
skilled workers who now had Saturday afternoons off.
Seaside Resorts: Places like Blackpool or
Coney Island exploded in popularity as the "working-class holiday"
became a staple of life.
The "Virtuous Cycle"
This created a feedback loop that would have
certainly been a topic of interest in a lecture by someone like Mike Brown.
Increased Demand: Workers buy more
manufactured goods.
Mass Production: Factories grow to meet
demand, using "economies of scale" to make goods even cheaper.
Job Creation: More factory and retail jobs
are created, further expanding the pool of consumers.
A Slight Correction on "The Boom"
While this was the start, it’s worth noting
that this "boom" was still somewhat fragile. It mostly applied to the
skilled workers (engineers, printers, carpenters). The "unskilled"
labour force still lived in precarious poverty. It wasn't until the post-WWI
era and the rise of Fordism (paying workers enough to buy the cars they built)
that the consumer economy reached its final, high-octane form.
But we've gone round in a circle because the
people who are ryunning the show and this includes the current hand picked by
Mandeslon LINO (Labour in name only) government. Consumers are losing the
ability to buy the extras and are being forced back to basics again.
The odd thing is that China, India, Russia
and the BRIC nations seem to have the answer. While the G7 west languishes in
an unnecessary decline.
