Want companies to hire more American workers? Then stop shopping on a $*!&@ price point!
In 2015, U.S. organic sales reached record levels. Up 11% from 2014, sales of organic goods hit $43.3 billion, more than double 2005 sales (Organic Trade Association, OTA). According to OTA, “2015 was a year of significant growth for the industry despite the continued struggle to meet the seemingly unquenchable consumer demand for organic [goods].” (The emphasis is mine.)
Companies ❤️ Consumers (?!)
Obviously companies producing organic products REALLY give a shit about the environment (or consumers, or the earth, or whatever justification suits). Unfortunately,NO. Like all businesses, those that produce organic goods are driven by revenue. Higher revenues, means companies will produce more because, remember, businesses exist to make a profit; if there is money to be had, more companies want a piece of the action and the industry expands (i.e. more businesses produce the good in high demand). This is true for all sales, including firms who are buying inputs (i.e. those items needed to produce their goods) and the consumer market. This is the real effect in the market for nearly all goods (with some exceptions that we’ll delve into at a later date).
Consumers use their money to communicate to firms which products are most profitable. Despite calls from Trump laying complete blame at the foot of businesses, Consumers decide which companies and/or goods flourish and which fail. Products that are not popular with consumers, will fail. There’s no way around it; consumers simply will not purchase items they are not interested in. (As an aside: this holds true in the private market. In the public market, aka the market for government goods, this relationship is decidedly different.
Organic Trade Association, State of the Industry; 2016.
Capitalism: The Rules
So what does this have to do with Organic goods? As the Organic Trade Association so eloquently stated, consumer demand is unquenchable. This industry is growing because these products are popular among consumers. Do not be fooled: the companies do not care one bit about you, or the environment, or any other reason a consumer may seek organic goods. This is easily recognized through products like Clorox Green Works. Sure Clorox Green Works is, perhaps, a more environmentally-friendly cleaning alternative but it’s not because Clorox suddenly cares about the environment. It’s all about the benjamins. Clorox recognized an opportunity to make beaucoup bucks (as my mother would say) and launched their green line in 2008. And since 2008, the sale of organic goods (industry-wide) has nearly doubled. Coincidence? I think not. Clorox simply realized they could capitalize on consumers relatively newfound penchant for giving a shit, so they did.
Certainly, there are situations where companies actively manipulate the market (for example, dumping) but ultimately the power lies with the consumers for most goods, in the majority of markets. In a world where information is readily available, at our fingertips (even in our pockets!), consumers need not be duped by bright and shiny, cheap goods.
As corny as it sounds, knowledge is truly power. Many (many many) feel like capitalism is an evil scrounge (though most who engage in that kind of whining have no alternative economic systems to suggest). The truth is that consumers are woefully ill-equipped because they do not understand the rules of the (capitalism) game.
So, RULE NUMBER 1: Make sure that whatever cause you care about
(the environment, fair labor standards, American-made products, etc.),
you are somehow supporting by your dollar vote.
Does that mean that if you care about American-made products, you can never own a Toyota again…?!? No way, but become aware and make informed decisions; whether that leads you to a Toyota and an Element Electronics television (made in America), is up to you. Just understand the impact each and every dollar has on the economy and the companies and products you are supporting.
And if you’re grossed out by Trump’s family seeking to get special approval to hire international workers over those American workers he wined and dined during his campaign special, then do your homework and make sure you’re not supporting that BS (honestly, I’m pretty grossed out by the thought of Trump wine, regardless of who’s actually doing the work).
