Definition: 

Consumer Literacy is defined as the ability to assess and choose products effectively based on a person's individual morals and values. 

Importance: 

Consumer literacy impacts an individual’s decision to purchase a product or service. Poor consumer literacy may lead to the purchase of an unethically produced good or support of a service that may go against an individual’s ethics. In some extreme cases, consumer literacy can even impact a person’s health and physical well being, or their financial goals and aspirations. Without consumer literacy, companies and corporations would be free to take advantage of consumers as they please. 

The clothes that consumers choose to invest their money into can result in negative effects on foreign labor markets by supporting factories that employ laborers under poor working conditions and can lead to damage to the environment as a result of profit-first forms of production. Additionally, consumer literacy has historically been a useful tool in putting a stop to the unsavory practices of certain large corporations, with one of the biggest examples of this phenomenon being the production scandal regarding Nike in the late 1900s and early 2000s. With the rise of an interconnected world economy, the 1900’s saw the emergence of Global Supply Chains. Global Supply Chains can be defined as a form of production where goods are manufactured across multiple countries (Global Supply Chain np). The effects of this can be seen in Nike’s employment records which show that at the end of the 20th century, Nike had around 600,000 registered workers in global factories, compared to the 24,291 contracted employees in the United States (Locke 3). Additionally, almost all of the workers being employed abroad were contracted in countries with low minimum wages, with countries such as China, Indonesia, and Cambodia on average paying workers less than half of a living wage (Living Wage Versus Minimum Wage np). This information eventually became known to the world through media campaigns in these countries, resulting in Western markets hearing about Nike’s mistreatment of foreign labor. Due to the negative press around these products, many consumers began to realize the harm in continued support of Nike and its partners, sometimes even leading to rallies against Nike. Eventually, due to the damage being done to the brand, Nike decided to lead a restructuring campaign, resulting in many of these factories changing their practices to the benefit of workers (Locke 3). Without the help of consumers putting pressure on Nike, laborers working in Nike factories abroad could still be subject to the inhumane conditions that they were in the late 20th century. However Nike is not the only example of foreign labor being exploited; even in the modern day, consumers are obligated to consider the impact of what they choose to purchase. 

Knowledge of what makes a residence valuable is imperative for obtaining a residence. When obtaining a residence, buyers need to be aware of the factors that contribute to the value of a residence. A reliable determinant of the value of a property is its property tax. Property tax is implemented and regulated directly by the local governments. Different counties, cities, states, and countries control property taxes differently. Property tax is used by the local government to fund the place’s public services and establishments such as first responders and schools. Knowing how funds are allocated by the local government helps determine the local property tax rate. In California, each county can charge no more than one percent for property tax. This rate is known as the general tax levy or the countywide rate. The city usually charges around .25% for property tax in addition to the countywide rate. The dollar value of the rates can change up to 2% each year depending on changes directly or indirectly related to the property. Directly related factors are additions or renovations made to the property, such as building a new section of the house. The new property will be assessed, and the value of the property consequently will be adjusted, which will increase the cost of property tax. An example of an indirect factor is inflation. To protect from the effects of inflation on property tax, proposition 13 reduces this. A summary by CA Realty Training explains, “the value cannot go up to an amount beyond the rate of inflation that the Consumer Price Index measures. That limit being 2% per year” (“How do Property Taxes Work in California” np). Restriction on inflation by the legislature is not entirely effective against inflation, but it assures consumers in California. This restriction on inflation may not be present in other states. Understanding how a location’s property taxes function is essential for those wanting to own any kind of property.