Advertising is a boon to the American economy. By informing large numbers of consumers about the attributes of goods and services, it helps to create broad markets for those products, generating economies of scale that lower cost and prices.
Information embedded in advertising allows consumers
Advertising is a boon to the American economy. By informing large numbers of consumers about the attributes of goods and services, it helps to create broad markets for those products, generating economies of scale that lower cost and prices.
Information embedded in advertising allows consumers to make better choices in the marketplace, benefiting ultimate purchasers and stimulating competition among producers. The market activity generated by advertising helps to create jobs, provides funding for the mass media, and facilitates the sponsorship of cultural and athletic events, yielding further economic welfare benefits. Advertising also stimulates innovation: Businesses have a greater incentive to improve products if they are able to communicate those improvements to prospective buyers. Consistent with these insights, studies show that countries with higher rates of advertising enjoy stronger economic growth.
In short, advertising in general promotes a strong market economy. False or deceptive advertising, however, undermines the market econo