Artificial demand facts for kids
Artificial demand is when people want something they wouldn't normally desire. This desire is often created by outside influences. Think of it as wanting a new toy or gadget just because everyone else seems to have it, or because an advertisement made it look super cool. Without these influences, you might not have even thought about it!
This idea is important in understanding how businesses and even governments sometimes try to make people want things. It can be a bit controversial because it sometimes means people buy things they don't truly need.
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What is Artificial Demand?
Artificial demand, also called manufactured demand, happens when a desire for a product or service is created. This desire wouldn't exist naturally. It's like being convinced you need something new, even if your old one works perfectly fine.
Sometimes, this demand is created in ways that are not very efficient. For example, imagine a doctor suggesting a medical service that isn't really needed. This would be creating artificial demand for that service.
Governments can also create artificial demand. They might spend money on projects mainly to create jobs. This is instead of focusing only on the final product. A famous thinker, Noam Chomsky, suggested that too much military spending can be a type of artificial demand. He called it "high technology waste" because it creates markets for weapons that might not be truly necessary.
How is Demand Created?
Many things can create artificial demand. One of the biggest ways is through mass media advertising. This includes TV commercials, online ads, social media campaigns, and even billboards.
The Power of Advertising
Good advertising can make people really want a product or service. It can make something seem exciting, new, or essential. Companies often spend a lot of money on advertising. They do this especially when new products come out. Their goal is to create a huge desire for the product right away. This helps them sell many items quickly. Advertising works by putting ideas and desires for a brand or product into people's minds.
Real-World Examples
Artificial demand can be seen in many parts of our daily lives.
Making Things Seem Popular
Think about a new video game console or a popular clothing brand. Companies often use clever marketing to create a huge buzz. They make it seem like everyone is talking about it and that you *must* have it. This creates a sudden, strong demand for the product. People rush to buy it, even if they wouldn't have thought about it before the hype began. This kind of created excitement can sometimes make an item's price go up very quickly.
Government's Role
Governments sometimes fund large projects. These projects might be for building roads or new technologies. While these projects can be useful, sometimes a main reason for them is to create jobs. This boosts the economy by giving people work and money to spend. This focus on job creation, rather than just the final product, can be seen as creating artificial demand for labor and resources.
See Also
 | Selma Burke |
 | Pauline Powell Burns |
 | Frederick J. Brown |
 | Robert Blackburn |
