Consumerism is the idea or social tendency that encourages people to buy and consume goods and services in large amounts, often beyond basic needs. It can have both positive and negative effects. Economically, consumer spending can increase demand, support businesses, create jobs, and encourage innovation. However, excessive consumerism can contribute to waste, environmental damage, debt, overuse of natural resources, and a culture that associates happiness or social status with owning material things. For example, replacing a perfectly usable phone every year mainly because a newer model has been released can be considered a form of consumerism.