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"Advertisements lead to wasteful expenditure." Present an argument against this statement.

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subhratamahanta | Student, Grade 10 | eNoter

Posted October 2, 2012 at 2:14 PM via web

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"Advertisements lead to wasteful expenditure." Present an argument against this statement.

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted October 2, 2012 at 2:22 PM (Answer #1)

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This statement is only true (one can argue) if we take a very broad, uneconomic view of the word “wasteful.”  In order to justify the statement, one must conclude that spending on things that are not needs (but are only wants) is inherently wasteful.

To an economist, anything that a person wants to buy and is able to buy is not wasteful.  People have the right to choose what things they want and do not want.  So long as their desires are being fulfilled, they are not wasting their money.  Therefore, advertising does not lead to waste.  Instead, it simply helps to alter what wants people have.  As long as it does not compel them to buy things they do not actually want, it does not cause waste.

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