Multinational Monitor

JAN/FEB 2005
VOL 26 No. 1


Don't Mourn, Organize: Big Business Follows Joe Hill's Entreaty to U.S. Political Dominance
by Robert Weissman

Wall Street Ascendant
by Doug Henwood

Slow Motion Coup d'Etat: Global Trade Agreements and the Displacement of Democracy
by Lori Wallach

Every Nook and Cranny: The Dangerous Spread of Commercialized Culture
by Gary Ruskin and Juliet Schor

Profits of War: The Fruits of the Permanent Military-Industrial Complex
by William Hartung

Wal-Mart: Rise of the Goliath
by Liza Featherstone

Monster Banks: The Political and Economic Costs of Banking and Financial Consolidation
by Jake Lewis

Grand Theft: The Conglomeratization of the Media and the Degradation of Culture
by Ben Bagdikian


Do We Not Bleed? Flower Workers and the Struggle for Justice
an interview with Olga Tutillo and Ricardo Zamudio


Letters to the Editor

Behind the Lines

Reflections on 25 Years

The Front
Philippines to be Drilled - Nuke Power Deal Put to Rest

The Lawrence Summers Memorial Award

Names In the News


Every Nook and Cranny: The Dangerous Spread of Commercialized Culture

by Gary Ruskin and Juliet Schor

In December, many people in Washington, D.C. paused to absorb the meaning in the lighting of the National Christmas Tree, at the White House Ellipse. At that event, President George W. Bush reflected that the “love and gifts” of Christmas were “signs and symbols of even a greater love and gift that came on a holy night.”

But these signs weren’t the only ones on display. Perhaps it was not surprising that the illumination was sponsored by MCI, which, as MCI WorldCom, committed one of the largest corporate frauds in history. Such public displays of commercialism have become commonplace in the United States.

The rise of commercialism is an artifact of the growth of corporate power. It began as part of a political and ideological response by corporations to wage pressures, rising social expenditures, and the successes of the environmental and consumer movements in the late 1960s and early 1970s. Corporations fostered the anti-tax movement and support for corporate welfare, which helped create funding crises in state and local governments and schools, and made them more willing to carry commercial advertising. They promoted “free market” ideology, privatization and consumerism, while denigrating the public sphere. In the late 1970s, Mobil Oil began its decades-long advertising on the New York Times op-ed page, one example of a larger corporate effort to reverse a precipitous decline in public approval of corporations. They also became adept at manipulating the campaign finance system, and weaknesses in the federal bribery statute, to procure influence in governments at all levels.

Perhaps most importantly, the commercialization of government and culture and the growing importance of material acquisition and consumer lifestyles was hastened by the co-optation of potentially countervailing institutions, such as churches (papal visits have been sponsored by Pepsi, Federal Express and Mercedes-Benz), governments, schools, universities and nongovernmental organizations.

While advertising has long been an element in the circus of U.S. life, not until recently has it been recognized as having political or social merit. For nearly two centuries, advertising (lawyers call it commercial speech) was not protected by the U.S. Constitution. The U.S. Supreme Court ruled in 1942 that states could regulate commercial speech at will. But in 1976, the Court granted constitutional protection to commercial speech. Corporations have used this new right of speech to proliferate advertising into nearly every nook and cranny of life.

Entering the schoolhouse

During most of the twentieth century, there was little advertising in schools. That changed in 1989, when Chris Whittle’s Channel One enticed schools to accept advertising, by offering to loan TV sets to classrooms. Each school day, Channel One features at least two minutes of ads, and 10 minutes of news, fluff, banter and quizzes. The program is shown to about 8 million children in 12,000 schools.

Soda, candy and fast food companies soon learned Channel One’s lesson of using financial incentives to gain access to schoolchildren. By 2000, 94 percent of high schools allowed the sale of soda, and 72 percent allowed sale of chocolate candy. Energy, candy, personal care products, even automobile manufacturers have entered the classroom with “sponsored educational materials” — that is, ads in the guise of free “curricula.”

Until recently, corporate incursion in schools has mainly gone under the radar. However, the rise of childhood obesity has engendered stiff political opposition to junk food marketing, and in the last three years, coalitions of progressives, conservatives and public health groups have made headway. The State of California has banned the sale of soda in elementary, middle and junior high schools. In Maine, soda and candy suppliers have removed their products from vending machines in all schools. Arkansas banned candy and soda vending machines in elementary schools. Los Angeles, Chicago and New York have city-wide bans on the sale of soda in schools. Channel One was expelled from the Nashville public schools in the 2002-3 school year, and will be removed from Seattle in early 2005. Thanks to activist pressure, a company called ZapMe!, which placed computers in thousands of schools to advertise and extract data from students, was removed from all schools across the country.

Ad creep and spam culture

Advertisers have long relied on 30-second TV spots to deliver messages to mass audiences. During the 1990s, the impact of these ads began to drop off, in part because viewers simply clicked to different programs during ads. In response, many advertisers began to place ads elsewhere, leading to “ad creep” — the spread of ads throughout social space and cultural institutions. Whole new marketing sub-specialties developed, such as “place-based” advertising, which coerces captive viewers to watch video ads. Examples include ads before movies, ads on buses and trains in cities (Chicago, Milwaukee and Orlando), and CNN’s Airport channel. Video ads are also now common on ATMs, gas pumps, in convenience stores and doctors’ offices.

Another form of ad creep is “product placement,” in which advertisers pay to have their product included in movies, TV shows, museum exhibits, or other forms of media and culture. Product placement is thought to be more effective than the traditional 30-second ad because it sneaks by the viewer’s critical faculties. Product placement has recently occurred in novels, and children’s books. Some U.S. TV programs (American Idol, The Restaurant, The Apprentice) and movies (Minority Report, Cellular) are so full of product placement that they resemble infomercials. By contrast, many European nations, such as Austria, Germany, Norway and the United Kingdom, ban or sharply restrict product placement on television.

Commercial use of the Internet was forbidden as recently as the early 1990s, and the first spam wasn’t sent until 1994. But the marketing industry quickly penetrated this sphere as well, and now 70 percent of all e-mail is spam, according to the spam filter firm Postini Inc. Pop-ups, pop-unders and ad-ware have become major annoyances for Internet users. Telemarketing became so unpopular that the corporate-friendly Federal Trade Commission established a National Do Not Call Registry, which has brought relief from telemarketing calls to 64 million households.

Even major cultural institutions have been harnessed by the advertising industry. During 2001-2002, the Smithsonian Institution, perhaps the most important U.S. cultural institution, established the General Motors Hall of Transportation and the Lockheed Martin Imax Theater. Following public opposition and Congressional action, the commercialization of the Smithsonian has largely been halted. In 2000, the Library of Congress hosted a giant celebration for Coca-Cola, essentially converting the nation’s most important library into a prop to sell soda pop.

Targeting kids

For a time, institutions of childhood were relatively uncommercialized, as adults subscribed to the notion of childhood innocence, and the need to keep children from the “profane” commercial world. But what was once a trickle of advertising to children has become a flood. Corporations spend about $15 billion marketing to children in the United States each year, and by the mid-1990s, the average child was exposed to 40,000 TV ads annually.

Children have few legal protections from corporate marketers in the United States.

This contrasts strongly to the European Union, which has enacted restrictions. Norway and Sweden have banned television advertising to children under 12 years of age; in Italy, advertising during TV cartoons is illegal, and toy advertising is illegal in Greece between 7 AM and 11 PM. Advertising before and after children’s programs is banned in Austria.

Government brought to you by...

As fiscal crises have descended upon local governments, they have turned to advertisers as a revenue source. This trend began inauspiciously in Buffalo, New York in 1995 when Pratt & Lambert, a local paint company, purchased the right to call itself the city’s official paint. The next year the company was bought by Sherwin-Williams, which closed the local factory and eliminated its 200 jobs.

In 1997, Ocean City, Maryland signed an exclusive marketing deal to make Coca-Cola the city’s official drink, and other cities have followed with similar deals with Coke or Pepsi. Even mighty New York City has succumbed, signing a $166 million exclusive marketing deal with Snapple, after which some critics dubbed it the “Big Snapple.”

At the United Nations, UNICEF made a stir in 2002 when it announced that it would “team up” with McDonald’s, the world’s largest fast food company, to promote “McDonald’s World Children’s Day” in celebration of the anniversary of the United Nations adoption of the Convention on the Rights of the Child. Public health and children’s advocates across the globe protested, prompting UNICEF to decline participation in later years.

Another victory for the anti-commercialism forces, perhaps the most significant, came in 2004, when the World Health Organization’s Framework Convention on Tobacco Control became legally binding. The treaty commits nations to prohibit tobacco advertising to the extent their constitutions allow it.


Because the phenomenon of commercialism has become so ubiquitous, it is not surprising that its effects are as well. Perhaps most alarming has been the epidemic of marketing-related diseases afflicting people in the United States, and especially children, such as obesity, type 2 diabetes and smoking-related illnesses. Each day, about 2,000 U.S. children begin to smoke, and about one-third of them will die from tobacco-related illnesses. Children are inundated with advertising for high calorie junk food and fast food, and, predictably, 15 percent of U.S. children aged 6 to 19 are now overweight.

Excessive commercialism is also creating a more materialistic populace. In 2003, the annual UCLA survey of incoming college freshmen found that the number of students who said it was a very important or essential life goal to “develop a meaningful philosophy of life” fell to an all-time low of 39 percent, while succeeding financially has increased to a 13-year high, at 74 percent. High involvement in consumer culture has been show (by Schor) to be a significant cause of depression, anxiety, low self-esteem and psychosomatic complaints in children, findings which parallel similar studies of materialism among teens and adults. Other impacts are more intangible. A 2004 poll by Yankelovich Partners, found that 61 percent of the U.S. public “feel that the amount of marketing and advertising is out of control,” and 65 percent “feel constantly bombarded with too much advertising and marketing.” Is advertising diminishing our sense of general well-being? Perhaps.

The purpose of most commercial advertising is to increase demand for a product. As John Kenneth Galbraith noted 40 years ago, the macro effect of advertising is to artificially boost the demand for private goods, thereby reducing the “demand” or support for unadvertised, public goods. The predictable result has been the backlash to taxes, and reduced provision of public goods and services.

This imbalance also affects the natural environment. The additional consumption created by the estimated $265 billion that the advertising industry will spend in 2004 will also yield more pollution, natural resource destruction, carbon dioxide emissions and global warming.

Finally, advertising has also contributed to a narrowing of the public discourse, as advertising-driven media grow ever more timid. Sometimes it seems as if we live in an echo chamber, a place where corporations speak and everyone else listens.

Governments at all levels have failed to address these impacts. That may be because the most insidious effect of commercialism is to undermine government integrity. As governments adopt commercial values, and are integrated into corporate marketing, they develop conflicts of interest that make them less likely to take stands against commercialism.

Disgust among yourselves

As corporations consolidate their control over governments and culture, we don’t expect an outright reversal of commercialization in the near future.

That’s true despite considerable public sentiment for more limits and regulations on advertising and marketing. However, as commercialism grows more intrusive, public distaste for it will likely increase, as will political support for restricting it. In the long run, we believe this hopeful trend will gather strength.

In the not-too-distant future, the significance of the lighting of the National Christmas Tree may no longer be overshadowed by public relations efforts to create goodwill for corporate wrongdoers.


Conversation among family and friends may be the last refuge from commercialism. Not surprisingly, marketers have sought to exploit personal relationships, through the contrivance of word-of-mouth “buzz.” Specialized “buzz marketing” firms and projects have arisen during the last five years. Proctor & Gamble has set up a buzz marketing shop called Tremor, which has enlisted about 280,000 teenagers as a free sales force under its control, and they are now launching a spin-off called Tremor Moms.

— G.R. & J.S.

Gary Ruskin is Executive Director of Commercial Alert. Juliet Schor is a professor of sociology at Boston College, and author of Born to Buy: The Commercialized Child and the New Consumer Culture. She serves on the Board of Directors of Commercial Alert.


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