Financial Hedonism: American Consumerism and the Financial Crisis

Abstract

The American character is defined by a bigger, higher, faster mindset. Throughout its history, this has been the United States' great strength. In the 20th century, the bigger-higher-faster mentality produced a parade of American successes, attracting talented immigrants from across the globe and spurring a century of unparalleled invention and ingenuity. Two generations ago, bigger-higher faster stood for innovation: the jet airplane, the towering and beautiful skyscraper, or the efficiency of the assembly-line automobile. In today's America, defined by its consumeristic excess, biggerhigher- faster means bigger houses, higher debt, and faster gratification. The bigger-higher-faster mentality that has always defined America has cross-pollinated with another strain of Americana-consumerism-to calamitous results. The global financial crisis stands as example one of the disastrous results of Americans'consumeristic excess. While popular lore holds that the financial crisis is the product of greedy Wall Street bankers, avaricious speculators, and mendacious mortgage brokers, the primary perpetrator is the average American who lusted after a house far beyond his means, furnished it with fixings he could not afford, and paid for everything using easily available credit. For nearly a decade, banks gave platinum...