How Consumer Propaganda Changed America

Epic Economics
16 Jul 202324:15

Summary

TLDRThis script narrates the influential journey of Edward Bernays, the father of public relations and modern consumerism. From orchestrating the 'Torches of Freedom' campaign for Lucky Strike cigarettes in 1929 to shaping American consumer behavior, Bernays manipulated societal norms and desires, leading to the rise of consumer culture and planned obsolescence. Despite contributing to the 1929 stock market crash, his influence persisted post-Great Depression, showcasing his enduring impact on American society.

Takeaways

  • 🚬 In 1929, women smoking was considered scandalous, and the 'Torches of Freedom' event during the Easter Sunday parade in New York City was a staged spectacle to normalize it, orchestrated by Edward Bernays for his client, Lucky Strike.
  • 🎭 Edward Bernays, an Austrian immigrant and nephew of Sigmund Freud, used his understanding of psychoanalysis to pioneer modern consumerism and public relations, manipulating public opinion and desires.
  • 🏆 Bernays was instrumental in promoting the U.S. war effort during WWI, using propaganda techniques that later translated into his work in advertising and public relations.
  • 🚗 Bernays helped the automobile industry combat overproduction by marketing cars as symbols of status and sexuality, and by introducing the concept of planned obsolescence through annual model changes.
  • 🥓 He also influenced food consumption by creating a demand for bacon through a campaign that involved getting physicians to endorse a larger breakfast, which included bacon as a healthier option.
  • 👗 Bernays played a significant role in shaping fashion consumerism, using celebrity endorsements and fashion shows to create a desire for certain clothing lines and styles.
  • 🟢 Bernays changed fashion trends by making the color green fashionable to help Lucky Strike sell more of their cigarettes, demonstrating his ability to influence social norms for commercial gain.
  • 📈 His propaganda techniques were used to popularize retail investing, contributing to the stock market boom of the 1920s and the subsequent crash that led to the Great Depression.
  • 🌐 Bernays' influence extended beyond individual products, helping to shape broader economic concepts like consumerism and market expansion theory, which have had lasting impacts on the American economy.
  • 📉 Despite the economic collapse, Bernays' influence persisted, and he continued to shape public opinion and consumer behavior even after the Great Depression.

Q & A

  • What was the taboo associated with women smoking in the 1920s?

    -In the 1920s, women smoking was considered taboo as cigarettes were seen as accessories of corrupted women, prostitutes, and social outcasts.

  • How did Edward Bernays orchestrate the 'Torches of Freedom' event during the Easter Sunday parade in 1929?

    -Edward Bernays orchestrated the 'Torches of Freedom' event by having a group of fashionable debutants light up cigarettes in public, branding them as symbols of freedom, which was reported widely in newspapers as a protest, but was actually a propaganda stunt for his client, Lucky Strike.

  • Who was Edward Bernays' famous uncle and what was his contribution to the field of psychology?

    -Edward Bernays' uncle was Sigmund Freud, the father of psychoanalysis, whose work on the human subconscious, irrationality, and human desires greatly influenced Bernays' approach to public relations and marketing.

  • What was the role of Edward Bernays during World War I?

    -During World War I, Edward Bernays was part of the Committee on Public Information, tasked with selling America's war motives to the public at home and abroad, using propaganda techniques.

  • How did the concept of 'public relations' come into existence according to the script?

    -The concept of 'public relations' came into existence as a rebranding of propaganda by Edward Bernays, who sought a new term to describe his work in influencing public opinion after the negative connotations associated with propaganda in America.

  • What was the economic fear that corporate America faced after World War I?

    -The economic fear that corporate America faced after World War I was overproduction, where supply exceeded demand for goods and services, potentially leading to falling prices, dissolving profit margins, and economic downturns.

  • How did Edward Bernays contribute to the automobile industry's marketing strategies?

    -Edward Bernays contributed to the automobile industry by advising car companies to market cars not just as utility but as symbols of male sexuality and status, and by promoting annual design changes to create demand for new models, which led to the concept of planned obsolescence.

  • What was the 'green ball' event organized by Edward Bernays, and what was its purpose?

    -The 'green ball' was a star-studded event organized by Edward Bernays to make the color green fashionable, which was a strategy to increase the appeal of Lucky Strike's green and red packaging among women, thus expanding the market for the brand.

  • How did Edward Bernays influence the American breakfast culture?

    -Edward Bernays influenced the American breakfast culture by orchestrating a campaign that promoted a heavier breakfast as healthier, backed by 'independent' studies circulated in the press, which he had influenced. This led to the popularization of protein-rich breakfast items like eggs and bacon.

  • What was the impact of consumerism on the American economy during the 1920s as described in the script?

    -During the 1920s, consumerism was portrayed as the engine of economic growth, leading to rapid industrialization and an era of prosperity. However, it also contributed to overconfidence and excess borrowing, which eventually culminated in the Great Depression following the stock market crash of 1929.

Outlines

00:00

🚬 The Scandalous 1929 Easter Sunday Cigarette Protest

In 1929, during the Easter Sunday parade in New York City, a group of fashionable debutants defied social norms by publicly smoking cigarettes, which were considered taboo for women at the time. This act was portrayed as a protest and branded as 'torches of freedom' in the media. However, it was later revealed to be a staged event orchestrated by Edward Bernays, a pioneer in public relations, to promote his client, Lucky Strike, a major tobacco company. Bernays used this event to manipulate public perception and normalize women's smoking, showcasing his ability to shape consumer behavior and attitudes.

05:01

🎩 Edward Bernays: The Father of Public Relations

Edward Bernays, an Austro-Hungarian immigrant, began his career in public relations by promoting opera singer Enrico Caruso. His work in propaganda during World War I for the U.S. government led to a realization of the power of manipulating public opinion. After the war, Bernays returned to New York City and established the first public relations consultancy. He coined the term 'public relations' to rebrand propaganda and began to apply his skills to consumer goods, aiming to transform society from one based on needs to one driven by desires.

10:02

🚗 Revolutionizing the Automobile Industry with Emotional Selling

Bernays applied his understanding of human psychology to the automobile industry, advising car companies to market their products not just as utility items but as symbols of status and sexuality. He introduced the concept of planned obsolescence by encouraging annual model changes to create a demand for new cars. This strategy was successful in selling more cars, even when the market was saturated. Bernays' approach to marketing was revolutionary, focusing on creating emotional connections with consumers rather than just listing product features.

15:02

🍳 Manipulating the American Breakfast with Propaganda

Bernays was hired by the Beechnut Packing Company to increase bacon sales. He crafted a campaign that promoted a larger breakfast as healthier by leveraging the authority of physicians. By polling doctors and publishing their agreement that a heavier breakfast was better, Bernays influenced public opinion and饮食习惯. He also strategically placed articles promoting eggs and bacon as ideal breakfast foods, successfully altering the American breakfast culture to include these products.

20:04

💚 The Green Ball: Fashion, Propaganda, and Market Expansion

When Lucky Strike faced a decline in sales due to their packaging clashing with fashion trends, Bernays organized the 'Green Ball,' a high-society event that popularized the color green. By creating a demand for green fashion and artifacts, he managed to make Lucky Strike's green and red packaging desirable. This event exemplified Bernays' ability to expand markets by influencing social norms and consumer tastes, demonstrating the power of propaganda in shaping economic trends and consumer behavior.

📈 The Stock Market Boom and the Onset of the Great Depression

Bernays used his skills in propaganda to popularize retail investing, convincing Americans that owning stocks was a patriotic duty and a path to the American dream. This led to a surge in stock market investments and contributed to the bull market of the 1920s. However, the overconfidence in the economy and consumerism led to the Great Depression when the stock market crashed in 1929. Despite the economic collapse, Bernays' influence persisted, and he continued to shape public relations and consumer culture even after the depression.

Mindmap

Keywords

💡Edward Bernays

Edward Bernays, an Austro-Hungarian immigrant and nephew of Sigmund Freud, is widely considered the father of public relations. In the script, he is portrayed as the mastermind behind several propaganda campaigns, using psychoanalytic principles to manipulate public perception and consumer behavior. His influence on modern consumerism and advertising is central to the video's message, highlighting his role in shaping societal norms around products like cigarettes and cars.

💡Public Relations

Public relations, a term coined by Bernays, is described as a more acceptable form of propaganda that aims to manage and influence public opinion. The video explains how Bernays used this concept to shape mass consumer behavior, helping corporations sell products by appealing to emotions rather than rational needs. PR became a powerful tool in American consumerism, especially in industries like tobacco, automobiles, and fashion.

💡Torches of Freedom

Torches of Freedom refers to a staged event orchestrated by Bernays where women smoked cigarettes publicly during an Easter parade in 1929, positioning it as a symbol of female empowerment. This was actually a covert marketing campaign for Lucky Strike cigarettes, illustrating Bernays' ability to turn products into social statements, blending consumerism with cultural shifts.

💡Consumerism

Consumerism is the societal focus on acquiring goods and services in ever-increasing amounts, driven by the idea that personal and societal well-being is linked to consumption. The video portrays Bernays as a key figure in shifting America from a needs-based economy to a wants-based culture, using emotional appeals and psychological manipulation to create demand for products people didn’t necessarily need.

💡Planned Obsolescence

Planned obsolescence is a business strategy where products are designed to become outdated or obsolete, encouraging consumers to purchase new versions frequently. Bernays helped popularize this concept by advising car companies to release new designs annually, thereby promoting continuous consumption, as seen with General Motors surpassing Ford in car sales.

💡Conspicuous Consumption

Conspicuous consumption, coined by economist Thorstein Veblen, refers to the practice of purchasing goods to display wealth and status rather than for their utility. The video connects this concept to Bernays' tactics, showing how he used celebrity endorsements and emotional appeals to encourage people to buy products as status symbols, like cars and fashion items.

💡Market Expansion Theory

Market Expansion Theory, as demonstrated by Bernays, involves expanding the market for a product by redefining social norms or creating new trends. In the video, Bernays used this theory when he made the color green fashionable to boost sales of Lucky Strike cigarettes, showing how he manipulated cultural trends to increase demand.

💡Overproduction

Overproduction is an economic situation where supply exceeds demand, leading to unsold goods and potential economic downturns. The script explains how American corporations in the 1920s feared overproduction and how Bernays helped address this issue by creating demand through psychological manipulation, thus fueling consumerism.

💡Sigmund Freud

Sigmund Freud, the father of psychoanalysis and Bernays' uncle, heavily influenced Bernays' work. Freud’s theories on the subconscious and human irrationality became the foundation for Bernays’ public relations strategies, allowing him to tap into deeper emotional and psychological triggers to sell products and manipulate public opinion.

💡Propaganda

Propaganda, originally a term with negative connotations, was rebranded by Bernays as public relations. The script highlights how Bernays used propaganda techniques during World War I to sell the U.S. war effort and later applied these same techniques in peacetime to sell consumer goods, shaping modern advertising and media strategies.

Highlights

In 1929, women smoking was a taboo, seen as a sign of corrupted women and social outcasts.

A group of debutants publicly smoked cigarettes during the Easter Sunday parade in New York City, branding them as 'torches of freedom'.

The 'torches of freedom' event was a propaganda orchestrated by Edward Bernays for his client, Lucky Strike.

Edward Bernays, an Austrian immigrant, was a pioneer in the field of public relations and a master manipulator of public opinion.

Bernays used his uncle Sigmund Freud's psychoanalytic theories to understand and influence human behavior.

During WWI, Bernays worked with the U.S. government on war propaganda, influencing public opinion in favor of the war effort.

Post-war, Bernays returned to New York and established the first public relations consultancy, applying his propaganda skills to business.

Bernays helped to shift American culture from needs-based to wants-based, promoting consumerism as a means of economic growth.

He introduced the concept of planned obsolescence in the automobile industry, encouraging annual model changes to boost sales.

Bernays was the first to use product placement in film and television, and to employ psychologists to endorse products.

He influenced American breakfast habits by promoting a heavier breakfast as healthier, indirectly promoting his client's bacon products.

Bernays used celebrity endorsements and fashion shows to transform department stores into venues for consumerism.

He directly influenced fashion trends, such as making the color green fashionable to match Lucky Strike's packaging.

Bernays' propaganda techniques were used to popularize retail investing, contributing to the stock market boom of the 1920s.

The Great Depression of 1929 marked the end of Bernays' influence on consumerism, as the economy collapsed and unemployment soared.

Despite the Great Depression, Bernays continued to wield significant influence and power in public relations after the economic downturn.

Transcripts

play00:00

picture this the year is 1929 it's a

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crisp Easter Sunday and we find

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ourselves in the heart of the annual

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Easter Sunday parade in New York City

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the Hot Topic in the crowd isn't the

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parade itself or the Glorious Spring

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weather oh no it's something far more

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scandalous the notion that women smoke

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cigarettes that sounds pretty absurd

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doesn't it but in the 1920s women

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smoking was quite the taboo as

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cigarettes were seen as accessories of

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corrupted women prostitutes and social

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outcasts this taboo was thought to be so

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offensive at the time that several U.S

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states even tried to Outlaw women's

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smoking but then a plot twist right out

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of a Hollywood movie unfolded mid parade

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a group of fashionable debutants emerges

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from the crowd struts into the parade

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and what do they do they light up

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cigarettes right there in front of God

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and everybody else and with a defiant

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smirk they branded these cigarettes as

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torches of freedom

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but here's the punchline

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there was no real protest and there was

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no heartfelt Rebellion I mean to

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everyone watching there there certainly

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was and the newspapers had this all over

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the front page the very next day but

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what nobody except a handful of people

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knew was this was a theatrical spectacle

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orchestrated by one man to serve his

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clients demands and that client was none

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other than big tobacco specifically

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Lucky Strike this wasn't a protest at

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all

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it was propaganda and who was the master

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of deception that orchestrated it well

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his name

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was Edward Bernays the man who as you

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will learn today is responsible for a

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modern day consumerism a man who is very

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likely the most influential person

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you've never heard of this is the story

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of how a young immigrant working in

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advertising went on to manipulate

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millions of people into spending money

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on things they didn't want and in doing

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so inventing the field of public

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relations and shaping the world around

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you in ways you can't even imagine

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Our Story begins in Toledo Ohio the year

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is 1917. the lights are dim as the

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Velvet curtain of the grand opera house

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opens a spellbinding voice Echoes across

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the hall and it belongs to Enrico Caruso

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an Italian opera star being guided to

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International Fame by his cunning agent

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this agent is an austro-hungarian

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immigrant named Edward Bernays a man

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whose lineage would Peak the Curiosity

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of anyone interested in human psychology

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and that's because bernay's uncle was

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none other than Sigmund Freud the father

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of psychoanalysis and now Bernays was

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making a star out of Enrico Caruso by

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generating interest in his mysteriously

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beautiful voice by publicly having the

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singer go to comedic lengths just to

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protect it but on this night April 2nd

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1917 it was his life that was about to

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take turn that no one saw coming a

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world-defining announcement was being

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made at the exact same time

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300 miles away in Washington DC as

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President Woodrow Wilson was declaring

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the U.S was about to join World War one

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and fight against Austria and Germany

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War propaganda was about to become the

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Talk of the Town and Bernays with his

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unique set of skills found himself like

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several other propagandists at the time

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summoned by the U.S government Bernays

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joined the Committee of Public

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Information tasked with selling

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America's War motives to the public at

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home and abroad President Woodrow Wilson

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wanted to make clear that his agenda was

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not to establish the old European

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Empires but rather ecosport democracy to

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Europe throughout the War President

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Wilson found bernay's execution and

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ideas so impressive that the president

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invited the then 26 year old Bernays to

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join him at the Paris peace conference

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after the war the reception Wilson

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received in Paris was shocking to even

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Bernays swarms of people rushed the

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streets to get a glimpse of their hero

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the great Liberator President Woodrow

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Wilson as a young bernay's watchdon

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stunned by the sheer impact of his work

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he began to wonder if these techniques

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could work a magic during times of War

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could they perhaps be harnessed in times

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of peace

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there was just one little detail that

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was killing our anti-heroes Daydream the

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word propaganda it was tainted in

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America it carried a negative undertone

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and was associated with German war

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efforts but our clever Bernays wasn't

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gonna let semantics ruin his Grand plans

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all he needed was a new term and thus

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public relations was born

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after the war Edward bernay's returned

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to New York City the war had changed

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Bernays it had made him more confident

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in his abilities but it had also

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reinforced the impression in his mind

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that people were dopes and I'm not

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paraphrasing Bernay is often referred to

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people as stupid dopes sheep so with a

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newfound sense of conviction a devolved

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view of human intellect and a shiny new

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phrase to describe what he did he set up

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the first ever public relations

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consultancy and opened up his puppet

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Mastermind for business he wrote his

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uncle Freud gifting him a rare box of

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Havana cigars Freud wrote back returning

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the favor with a copy of his new book

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psychoanalysis Bernays found the work

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captivating and felt that Freud's

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analysis of the human subconscious human

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irrationality and humans need to desire

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was the key to populating the newly

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established big city crowds that were

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forming around a new era of American

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History during this time the American

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corporate landscape was undergoing quite

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the evolution of its own the conclusion

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of the war marked the start of an era of

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rapid industrialization in America with

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machines increasingly doing the heavy

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lifting companies were now churning out

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Goods faster than ever before while this

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brought unprecedented efficiencies it

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also created a fear amongst the leaders

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of corporate America a fear of

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overproduction

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overproduction is an economic term that

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refers to a situation where Supply

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exceeds the demand for goods and

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services this can often lead to a fall

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in prices dissolving profit margins and

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producers may be left with unsold stock

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which in dire situations can snowball

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into potentially causing economic

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downturns Corporate America was

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petrified of this possibility and an

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unsolvable riddle presented itself

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how could they keep their factories

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buzzing their workers busy and the

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profits soaring if Americans only bought

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what they needed and so the masters of

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American industry faced an urgent need

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to transform a society from a

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needs-based culture to a wants based

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culture in the words of investment

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banker Paul mazzar of Lehman Brothers we

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must shift America we must make

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Americans more conscious of style people

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must be trained to desire to want new

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things even before the old have been

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entirely consumed as the 20th century

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unfolded a new Social and economic order

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began to take shape consumerism

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consumerism is the concept that promotes

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the virtue of acquiring goods and

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services in Forever increasing volumes

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it promotes the notion that an

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individual's well-being happiness and

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even social standing can be

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intrinsically linked to their capacity

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to consume consumerism Advocates that

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consumer spending is the engine of

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economic growth and while this seemingly

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New Concept was about to take center

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stage in America early analysis of this

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concept can be traced all the way back

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to 1899 when the political Economist

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absolute critic of capitalism and

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mustache of the century winner Thurston

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felblin theorized that conspicuous

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consumption became a means of signaling

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one's socioeconomic status and that

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people owned and used products not just

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for their utility but as emblems of

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Prestige and affluence in veblen's book

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the theory of the Leisure Class veblin

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also establishes the economic phenomenon

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we know as veblen Goods so America is

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going through this transformation and as

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you already know by now Edward Bernays

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is at the helm of it but the reason it

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ended up being Bernays and not some

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other propagandist is because of the

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insights Bernays Drew on from his

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uncle's work Bernays understood

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something that set him apart from all

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the other marketers out there Bernays

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understood that selling products wasn't

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about selling products it was about

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selling emotions at the time marketers

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thought that the most compelling way to

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communicate the virtues of a product

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were to list out all the things it could

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do Bernays laughed at this and claimed

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that the utility of a product hardly

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motivated purchases at all bernay's

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approach is perhaps best articulated by

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a former employee of his Peter Strauss

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who said Eddie Bernays saw that the way

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to sell a product was not to sell it to

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your intellect you should buy this

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automobile but rather

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you would feel better if you had this

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automobile he understood the idea that

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people were not just making purchases

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with their money but instead engaging

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with the product with a piece of

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themselves

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Bernays was the Maestro of manufacturing

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desire constructing emotional

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connections to purchases but enough with

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the philosophy in the context what did

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Bernays actually do

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at this time in American history one of

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the largest industries that feared

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overproduction was the newly thriving

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automobile industry the mass production

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of cars had only just kicked off in the

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1890s a couple of decades before the war

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so by 1924 even though cars were more

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sophisticated than ever they had reached

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a saturation point in the market

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everyone who needed a car pretty much

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had one so how were car companies

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supposed to sell more cars to a

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population that just didn't need them

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the notion of one household owning more

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than one car was just ridiculous and

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only something that the mega Rich would

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even entertain Bernays was the first

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person to tell car companies to Market

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cars and not as utility but as a symbol

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of male sexuality giving rise to long

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body luxury sedans and sports cars

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then to take things a step further

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Bernays advised his clients General

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Motors to create further demand for

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these new symbols of male Vitality by

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going to Market each year with new

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annual year designs this was the origin

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of a practice later coined planned

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obsoles at the time Ford was easily the

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largest car manufacturer in the United

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States and had produced over half of all

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of the cars on the road Henry Ford

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despised this practice of planned

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obsoles and he felt that constantly

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going to Market with new designs led to

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terrible engineering and was downright

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sleazy his dream for the future of

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automobile markets was one with much

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more Integrity but consumers were

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hypnotized as their subconscious heart

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strings were being yanked by bernese's

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Freudian tricks the virtues of

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engineering proved no match for bernay's

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propaganda games as GM went on to out

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Pace forward sales over the next decade

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claiming the spa it still holds today as

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America's largest automobile

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manufacturer and what is perhaps even

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more significant is that the annual

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design upgrades are now synonymous with

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the automobile industry but bernay's

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influence didn't just stop at cigarettes

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and cars He Touched every facet of

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social life he was the first to come up

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with the concept of product placement in

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film and television he was the first to

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employ psychologists to write reports

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that specific products were good for

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people and then have the reports

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released and circulated in independent

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studies the most famous example of this

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is showcased in his work with the

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Beechnut Packing Company who hired

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Bernays to help sell more bacon bernay's

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approached this challenge not by asking

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himself

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how do Americans decide what to eat but

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rather who tells Americans what to eat

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this gave Bernays the idea to approach

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his personal physician and ask him

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whether or not he would agree with the

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following argumentation because the body

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digests much of its calorie intake while

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sleeping and because calories are the

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fuel people need to go about their days

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people wake up from their sleep in a

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serious calorie deficit and thus having

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a larger breakfast as opposed to a

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lighter breakfast was more optimal way

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for people to start their days now today

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we know that that line of reasoning just

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isn't true and to a pretty meaningful

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extent the subconscious of Americans

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also knew this because no one was eating

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a large breakfast Americans actually ate

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a very small breakfast typically a piece

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of carbs paired with either juice or

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coffee but bernay's position was willing

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to agree with this line of reasoning

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prompting Bernays to request him to

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write 5 000 other physicians in the

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country polling them to ask if they too

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agreed with the sentiment of the 5 000

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Physicians they wrote four thousand and

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five hundred of them wrote back saying

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that they agreed Bernays then had these

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findings published and circulated in the

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Press with headlines informing Americans

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that thousands of Physicians all agreed

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that a heavier breakfast was healthier

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than a lighter one and that breakfast

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was the most important meal of the day

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at the exact same time Bernays planted

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other stories in the press that not so

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innocently promoted the virtues of eggs

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and bacon as the breakfast's finest

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protein-rich Staples no one batted an

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eye as the American breakfast a

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brainchild of bernay's propaganda was

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popularized seemingly overnight Bernays

play15:27

was also instrumental in sculpting

play15:29

modern fashion consumerism throughout

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the 1920s all the major Banks motivated

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by their agenda to evolve all of the

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ideology of the American Shopper heavily

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invested in a brand new invention the

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department store this was going to be

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the porcelain jungle that homed all the

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overproduced shiny things Americans

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didn't need but a new arena for

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consumption required a new breed of

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customers that America hadn't seen

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before so the banks hired bernades

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Bernays then hosted a series of fashion

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shows in the stores that boasted an

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array of celebrities who also happen to

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be his clients these celebrities would

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give speeches ridden by Bernays that

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prompted the idea that clothes were more

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than just Fabric and thread each outfit

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was a ticket to express one's unique

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magical special characteristics without

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these clothes how could one convey their

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inner charm and personality to the world

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how could anyone be viewed as special if

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they're closed the first thing that

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people saw when they looked at you were

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just plain and ordinary now while I

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certainly don't mean to imply Bernay

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should be credited with inventing

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branding it is clear that the use of

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celebrity endorsements to communicate

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the uniqueness and desirability of

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certain clothing lines as opposed to

play16:49

others served as a catalyst for the role

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modern apparel Brands hold today but

play16:55

Bernays didn't just popularize fashion

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he also directly influenced it and not

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even for the clients you might expect

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one day Lucky Strike the same cigarette

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brand that prompted Bernays to curate

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the Torches of Freedom propaganda came

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to him with a rather perplexing problem

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through their focus groups Lucky Strike

play17:15

had determined that women who Bernays

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had now successfully transformed into a

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new class of smoking Citizens We're

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choosing other cigarette boxes over

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theirs because Lucky Strikes green and

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red boxes were clashing with the fashion

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Norms of the time bernhaze insisted that

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the solution here was obvious change the

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package packaging of the boxes to

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something more fashionable the head of

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Lucky Strike insisted that there was no

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way that was going to happen as they had

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already invested millions of dollars

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into their branding and marketing

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efforts they instead requested that

play17:49

Bernays make green a more fashionable

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color and so that is exactly what he did

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Bernays organized the green ball a

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star-studded party generously covered by

play18:03

members of the press which featured

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beautiful green artifacts and

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decorations placed strategically around

play18:09

the venue he even had recognized

play18:11

intellectuals running around the room

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giving speeches about the historical

play18:15

virtues and poetic interpretations of

play18:18

the color green suddenly giving a color

play18:21

that no one wanted to wear quite the

play18:24

cachet

play18:25

this was so successful that before the

play18:28

ball had even taken place newspapers

play18:31

were feeding into the suspense

play18:33

publicizing how green was becoming All

play18:36

the Rage amongst members of High Society

play18:38

New York Edward bernay's work with the

play18:41

green ball is an unorthodox and striking

play18:43

embodiment of an economic concept

play18:45

referred to as Market expansion Theory

play18:49

Bernays expanded the market for Lucky

play18:51

Strike by redefining social norms and

play18:54

fashion trends thereby increasing demand

play18:57

for the green and red packaging the

play18:59

economic implications of the Market

play19:01

expansion Theory lie in its potential

play19:04

for fostering new economic opportunities

play19:06

industry growth and increased consumer

play19:09

consumption all of which can drive

play19:12

significant economic expansion and

play19:14

greater profiteering sobernay's clever

play19:16

plans were certainly doing their tricks

play19:19

Americans were transformed into

play19:21

consumers and Corporate America couldn't

play19:24

be happier now their plans were simple

play19:26

add fuel to the fire and expand into an

play19:30

even more Innovative more profitable

play19:32

more American future the corporations

play19:36

began borrowing the banks began

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borrowing and everyone's attitude was

play19:40

full steam ahead consumerism could do no

play19:43

wrong as it was powering one of the

play19:45

grandest stock market rallies of all

play19:47

time and in case you needed one more

play19:50

bernay's jaw dropper this bull market

play19:53

was also partially credited to bernays's

play19:56

doing as he had used propaganda

play19:58

techniques to popularize retail

play20:01

investing up until this point in history

play20:04

the average American took little to no

play20:06

interest in stocks why would they the

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Common Man hardly knew a thing about

play20:11

them and yet Bernays was able to sway

play20:14

the masses into believing that as

play20:17

Americans investing was a

play20:19

self-fulfilling exercise of nationalism

play20:22

and that owning a piece of the American

play20:24

economy was almost like a Birthright a

play20:27

no-brainer to any American who desired

play20:30

to live the American dream

play20:32

this compelling message sent swarms of

play20:35

Americans rushing to buy stocks

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predominantly from banks that of course

play20:41

Bernay is represented and was working

play20:44

for the entire time

play20:46

but as history will often remind us

play20:49

you can only play God for so long and

play20:52

Bernays was about to run into a daunting

play20:55

form of irrationality that even he could

play20:59

not comprehend

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[Music]

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it was late October 1929. Bernays was

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organizing a massive event in the heart

play21:14

of New York City which marked the 50th

play21:17

anniversary of the invention of the

play21:19

light bulb the entire spectacle was

play21:21

paying homage to the Innovations of

play21:24

American capitalism in attendance were

play21:26

tens of thousands of Americans as well

play21:29

as an endless number of notable figures

play21:31

that bernay's had in his pocket famous

play21:34

celebrities the leaders of corporate

play21:36

America business Titans like John D

play21:39

Rockefeller and even the U.S president

play21:42

president Herbert Hoover

play21:44

everyone there at bernay's request

play21:46

everyone there to glorify the gifts that

play21:50

consumerism had yielded but as they were

play21:53

gathered the chilling news was already

play21:56

beginning to spread and so with it

play21:59

panic the U.S stock market was

play22:03

completely collapsing for years leading

play22:06

up to this the overconfidence that came

play22:08

with consumerism and industrialization

play22:10

had led to a new wave of thinking a mass

play22:15

delusion had misled the bankers the

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businessmen and it seemed even the

play22:20

politicians as excess borrowing had been

play22:23

carried out under the notion that

play22:26

America was entering a new wave one in

play22:29

which the Glorious American economy was

play22:31

immune to economic downturns recessions

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and market crashes this notion was

play22:38

absolutely ridiculous and what pursued

play22:41

was the largest market crash in history

play22:44

the Great Depression had just begun

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washing away everything Bernays had

play22:50

built as a quarter of America's

play22:52

Workforce went on to lose their job the

play22:54

spending spree came to a drastic halt no

play22:57

longer were Americans compelled to

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purchase things that they didn't need

play23:01

and it seemed like bernay's time in the

play23:03

spotlight was finally over

play23:06

but actually it wasn't it would turn out

play23:10

that Edward bernay's influence while

play23:13

hindered wasn't down for the count when

play23:15

the Great Depression ended he managed to

play23:17

gain even more influence and power than

play23:20

ever before but if you want to hear the

play23:22

rest of that incredible story we'll be

play23:25

making a part two on the ultimate Puppet

play23:27

Master Edward Bernays once this video

play23:29

gets 15 000 likes

play23:38

picture this

play23:40

we're in the deep south of America the

play23:42

year is 1864. Confederate dollars are

play23:45

withering away into worthless

play23:47

nothingness and the desperation of the

play23:50

southern states is starting to show on

play23:52

the faces of Confederate soldiers a

play23:54

looming threat grows in the north they

play23:57

know it's coming the north has a leader

play24:00

who is about to make history a leader

play24:03

with a vision a cunning plan and an

play24:05

economic arsenal of Ingenuity that is

play24:08

about to change history forever as the

play24:11

survival of a Nation hangs in the

play24:14

balance

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الوسوم ذات الصلة
ConsumerismEdward BernaysAdvertisingPropaganda1920s AmericaPublic RelationsMarket ManipulationEconomic HistorySocial EngineeringCultural Shift
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