What is the effect of consumerism on the American economy? The father of modern economics and capitalism, Adam Smith, argued that ambition and greed, two drivers of a market economy, were mere illusions. He believed that it is these illusions that force a society to work for what it believes will make it happy, which, in turn, leads to a consumption-driven economy. Indeed, consumerism expands a society's economy through a broader selection of goods and services, but does it also increase a society's government power and control through consumer activism and regulation? Proponents of consumerism point out that indebtedness has long been a part of American history. Until the 20th century, Americans believed that indebtedness was a sign of wealth and power – something enjoyed by only the most respected members of society. Credit cards opened doors to the middle and lower classes and allowed them to purchase items once accessible only to the wealthiest members of society. Proponents of consumerism believe that making money through more available credit to consumers only benefits America because it encourages people to purchase more expensive goods and services. This, in turn, will stimulate demand for more, which will lead to more jobs and more spending. Proponents also insist that societal development is greater because of consumerism and that any government intervention to encourage the growth of consumerism is necessary to prevent the collapse of the American economy. Those who support consumerism argue that private companies simply cannot and should not regulate themselves. The lenient, if not almost non-existent, regulation of America's corporate and financial institutions nearly caused the collapse of the American economy in 200... middle of paper... becomes excessive consumption leading to consumer activism? Do Americans really want more just for the sake of having more, or are they simply looking for more security and equality? Time will tell whether Americans can move beyond the idea of ​​excessive consumption as the path to happiness and find a balance between Adam Smith's illusions of ambition and greed and the constant restructuring of the American political landscape due to excessive consumer demands . .” Issues and controversies on file: n. page Problems and controversies. Facts On File News Services, December 5, 2008. Web. March 20, 2011."Financial Regulation." Problems and controversies. Facts On File News Services, July 12, 2010. Web. March 31, 2011. Williamson, Thad. “America beyond consumerism.” Dollars & Sense May/June 2008: 10-15. File News Services Facts. Network. November 10 2009.