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Advertising and Economy - III - The Role of Advertising in the Capitalist Economy

© Swapan Brahmachari

Industrial capitalism, for the very purpose of it's growth and survival, has had to bring together and integrate the multi-structured, disintegrated pre capitalist society into the mass market. It is the process that has created the nation-state. By bringing together mass production and the mass of consumers, advertising has historically played a significant role in this process of integration and nationbuliding. By creating a common 'psychic desire' to consume, it has succeeded in bridging the gap between diverse social and cultural behavior patterns, thus nurturing a homogeneous national culture. To industrial capitalism and advertising the human being is primarily a consumer. In the market place there is no difference, in essence, among human beings in social or economic terms. They are all consumers.

The human being in the market place is at the receiving end of a veritable barrage of messages aimed at the unquestioned acceptance of a way of life and value system. Advertising does not sell goods or services but the benefits derived from them. These benefits might be inherent in the production or service, or purely psychological; a creation of the images conjured up by advertising. The promotion of a psychology of more and more consumption sustains also a value system, which is based on ruthless competition of individual achievement, which alone enables ever-expanding consumption of an increased range and variety of goods and services. It is such a way of life that alone can sustain an economic system based on the sole objective of maximization of profits. In this entire environment, the relevance of advertising is not only economic, but also social and cultural, and in the final analysis, even political. After all a particular economic structure can be sustained by relevant political structure.

From the logic of these arguments emerge certain specific aspects of the role of advertising in a capitalist economy as a catalyst of development. First, advertising serves a social and even developmental purpose by providing people with information about good and service available and also about new products and services. Secondly, advertising stimulates the economy and thus an instrument of development. Without advertising or marketing communication, products and services could not be sold in sufficient quantities. Without sale, factories would close down causing unemployment. This would further reduce demand and lead to further closing down of factories and chain reaction would set in. On the other hand, advertising promotes sales. Higher sales means more production, lower costs and economies of scale. This creates conditions of lower prices and hence more sales and more employment. As such this ensures the growth of the economy.

To be continued...

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