Friday, April 1, 2011

The Derivative of Consumerism

The year is 1919, the most devastating war in human history has come to an end. Countries around the world attempt to dig themselves out of the largest financial whole the world had seen in decades. Albert Einstein
confirmed his theory that light could bend around the sun during an eclipse on May 29th. Hitler was ordered to investigate the German Worker's Party in September which he would later join and use as his political platform.  Unbenounced to the tides of history, arguably the most important and longest lasting development of 1919 was the opening of a small consultancy business in New York by a small, persuasive, young jew by the name of Edward Bernays.

A press agent in 1913, Bernay would later become an integral part of President Woodrow Wilson's campaign to influence public opinion during the First World War in support of American troops. According to legendary linguist Noam Chomksy, as a result of Bernay's time spent helping the American war effort he observed that it was possible to: "regiment the public mind every bit as well as an army regiments their bodies". Building off the ideas first proposed by his uncle, Bernay's went on to become the foremost pioneer of public relations. He taught the first course on the subject at the University of New York. While undoubtedly under the influence of his infamous uncle, Dr. Sigmund Freud, Bernay unknowingly created a monster. Through his application and projection of Freud's psychoanalytic findings on the corporate community , Bernay's contributed- if not pioneered-the most valuable development in modern economics, consumerism.

The Evolution of Consumer Economics

Bernays' believed that left to its own devices, society was incapable of governing itself because civilizations were inherently dangerous. Bernays' believed in the herd mentality, and that it was possible to tap into the conscious or unconscious ambition which propelled the herd.
Building off the work of Walter Lipman- who Noam Chomsky credits as being the derivative of his 'Manufacturing Consent' piece- Bernays implied that society would eventually destroy itself if the group mind could not be harnessed. According to his daughter, Bernay's believed in the values of democracy, but much like market economics, left unto themselves, would never succeed. For this reason, he was convinced that the 'engineering of consent' was of paramount importance to the future success of politics and economics. The services of his consultancy firm became so successful that his resume would eventually read like a fortune 500 review; corporate clients would include: General Electric, Proctor & Gamble, CBS, Dodge Motors, American Tobacco and a slew of other high profile corporate clients.

Amongst his earliest success stories came by way of the tobacco industry. Bernay successfully used the media and news outlets to promote female smokers in public (previously a socially unacceptable pratice), delivering the tobacco companies an entirely new demographic and exponentially contributing to a growth in sales. This directly promoted Bernay's consultancy firm to the top of the newly established marketing industry.

Using theories designed by his uncle Sigmund, Bernay correctly postulated that by employing the proper psychoanalytic methods which best associated a product with an emotional stimuli, that it was possible to control the unconscious 'wants' of the herd , which therefore translated- at least to a certain degree-into control of their desires. Manipulating the wants of entire society (brainwashing by any other name) is an ambitious goal to put it eloquently. But if it could be done, it would become possible to specifically tailor a business to those 'wants'. If a corporate entity could harness the ability to replace necessity with desire, it would in essence create the ability to manipulate fundamental market principles such as supply and demand. Propaganda would never be the same again.

Inter-War Years

By 1928 Bernay had published a revolutionary work. It could not have come at a more opportune time. In his work entitled "propaganda", Bernay explicitly mentions at the opening that:

"The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country. We are governed, our minds are molded, our tastes formed, our ideas suggested, largely by men we have never heard of. This is a logical result of the way in which our democratic society is organized. Vast numbers of human beings must cooperate in this manner if they are to live together as a smoothly functioning society".    

Even though the 1930's did not further Bernay's ability to demonstrate the corporate economic benefits that psychoanalysis could illicite, the 1930s did unequivocally resolve Bernay's presupposition that left to its own devices, society would inherently collapsed unto itself. Across the world the economic situation would degenerate as the onslaught of the Great Depression became more dire with each passing year. Governments and regimes across the globe met their demise as the strength, propensity and furiousness of the herd mentality became apparent. Perhaps nowhere was the practice of manipulating the herd mentality more prevalent and more devastating then in Nazi Germany. Not even the Second World War could halt the progressive nature of modern public relations. Through covert and deceptive means, this juggernaut of modern propaganda would directly contribute to the Allies victory in World War Two.

Using an analogy from Nial Ferguson, author of "The Ascent Of Money"; the herd mentality can best be witnessed in paranoia demonstrated by cows. Once a single cow becomes startled it begins to flee out a perceived sense of fear.  Other cows-aware or not of threat- simply follow the first cow, not knowing how or why, the entire herd begins to clumsy stampede in one direction. This analogy is unfortunately not relegated to the animal kingdom. Perceived threats perpetuated by media and other sources are capable of inflicting similar responses in mankind through the use of timely and accredited news stories. Perhaps the most telling example of the media's ability to control the public mind can be demonstrated during the Cold War. When citizens across the globe became thoroughly convinced of an impending nuclear holocaust, to the point at which many people attempted to build 'bomb shelters'. Regardless of the simple idea that unless provided with state of the technology, most bomb shelters would have provided no protection at all. But facts, logic and rational thought all take a back seat to extreme emotional distress. Edward Bernay was simply the first to apply this fundamental principle of the human experience.

Post 1945

With the devastation and destruction that resulted from the Second World War, the world was left to rebuild. The prospect of corporate expansion in markets outside the US were slim for industries and companies that were not associated to some degree in the reconstruction effort. So effective and obvious were the benefits of concerted public relations campaign during the war that PR would never again be a tool relegated for use in only times of war.

More then any previous decade or era, during the 1950s and 60s the influence of PR became more refined and more explicit. Used by governments and corporations alike and blasted through television sets and radios everywhere, PR campaigns took on a proactive approach. The promotion of the Vietnam War, the explosion in demand and consumption by suburban dwellers and the massive growth of financial firms were all the result of strategic marketing and public relations campaigns used to garner support of a particular ideal.

Contemporary PR

The marketing industry has been referred to as 'the largest psychological experiment in human history'. Sources vary, but by most indications the current value of the modern marketing industry as a whole is at roughly half a trillion USD. Even if it is not the largest, it is certainly the most expense experiment in the history of man. Like any experiment, this one has come at a cost. Citizens brutally trampled on Black Thursday at Wal-mart in order to purchase a 'featured' item. The millions of people who have fallen into the "credit trap" of living outside of their means and purchasing items they don't need, on credit they can't afford. The most costly experiment- in both financial and cultural terms- has all but eroded any foreseen benefit that may have otherwise been derived.

The distinction between marketing/advertising and PR seems to have blurred in the last 20 years. Indeed there was a time when the two were easily distinguishable.  In the current context PR tends to refer to a firms ability to maintain a great public image, while the former refers to the firm's ability to demonstrate the necessity of its product line. In either event, the historical derivative of both can be found in the life work of Edward Bernays.

How often do you feel guilt upon purchasing an item that you can ill-afford? Maybe you come to the realization days-possibly hours- after the fact, and notice you did not even want the item in the first place?Attempts of self justification quickly dissipate as your error becomes evident. You joined (possibly not for the first time) the millions of people over the course of the last 90 years who have been tricked into a belief that the purchase was made out of necessity. Your guilt, a psychological indicator that you have engaged in an act-according to your moral compass- you probably should have avoided.

The industry has grown exponentially over the last 90 years to a point at which it is difficult to even recognize when a consumer has been psychologically taken advantage of.  The purpose of any PR campaign is to achieve a desired goal. Whether that goal is a political objective, the increase in sales revenue, or the simple task of getting friends to go to the restaurant you most prefer- the PR campaign is only as effective as the emotional response it can illicit.

In the media this tactic is known as fear mongering, whilst in the marketing industry it is epitomized in the idea of "sex sells".  Everywhere in society, marketing gurus, and PR managers are looking to attract the attention necessary in order to gain a competitive advantage. As long as these entities can continue to convince the populous of what you 'want', then they will keep getting what they need.