Why does consumption increase even in a recession?

In the summer 2007 we experienced a new global financial crisis. Many economists consider this to be the worst since 1929. This had drastic impact on families in the USA when they lost all their assets and some were even forced to leave their homes. In Sweden it did not have such an enormous afflict as the crisis had in USA but it forced companies to shut down and therefore also caused unemployment. Two and a half year later, the financial crisis still has an effect on us but in spite of the recession the consumption continues to increase. Why is that?

Among many reasons low taxes could actually be one of reasons for the increasing consumption. In 2006 we had an election. The New Moderate Party won over The Social Party and one of their election promises was to lower the taxes. The outcome of that gave us more money to spend than we actually had had before, which had a positive impact on the consumption even in a recession.

Another reason could be that during the same year as we were hit by the global financial crisis, the banks started lower the economic rent. This, together with the fact that the households until now had been doing historic great savings which they now reduced, helped the consumption to grow even stronger.

However to find the answer and the main reason to the fact that consumption is increasing we need to see how our society works today. No matter if we are struck by a financial crisis or reminded of the global warming and the causes to that, which indeed has to do with supplies and demands in the world, we are living in a world of consumption. The production gets more global and today it is easier to buy things especially when you have access to internet. The competitions between the producers lower the prices which embolden us to buy even more. Daily we are influenced and showered with information, advertisements, commercial from mass medium. We encourage buying new things, sometimes even things that we already have, only to have a new model or for the reason that we need more than one of this certain product. Consumption is essential for us, it gives employment and it generates money. Either we like this development or not we have to continue consuming to be able to survive.