The Addiction Economy - How Capitalism Profits from Craving

Introduction

I was recently reading a piece by the excellent writer Scott Galloway that triggered this post. In it, he posits that dopamine may be the most valuable resource on earth. Dopamine is a neurotransmitter, a chemical messenger in the brain, and it is very important to any understanding of addiction. Originally designed to reinforce behaviors essential to the survival of the species like eating food and sex, dopamine is released in response to things that give us pleasure. It acts as a reward that causes us to seek out more of the same stimulus in the future. Alcohol and drugs act on this same reward pathway in the brain, in a heightened way, due to the amounts of dopamine that are released far exceeding that of any natural stimulus. Galloway's article explores how this essential part of our brain chemistry has been exploited for financial gain.

It is important to recognize the structural forces at play in all kinds of social ills - poverty, discrimination, mental illness, etc. - and addiction is no different. Addiction has long been understood as a deeply personal struggle, but Galloway argues that it is also a fundamental feature of modern capitalism. From tobacco and sugar to smartphones and social media, some of the most profitable industries in history have been those that exploit our dopamine to turn human cravings into consumption and profit. The "addiction economy" isn’t just about substances—it extends to food, technology, entertainment, and even health care.

Understanding how these industries operate is essential, especially for those of us working in mental health and recovery and for those of us involved in the struggle to get or stay sober. Addiction isn’t just an individual battle; it’s also a systemic, global facet of our society, one that requires awareness, regulation, and personal empowerment. Whether addiction is chemically induced or behaviorally reinforced, the same neurological pathways are being hijacked, making it harder to break free.

In this post, I’ll explore how the addiction economy has shaped industries past and present, how modern technology is accelerating our dependence on dopamine-driven consumption, and what we can do to resist these forces.

The History of the Addiction Economy

Craving has always been a lucrative business model. Centuries ago, the British Empire fueled its economy by trading opium to China, creating one of the first large-scale drug epidemics. The Atlantic slave trade was driven in part by the demand for sugar and rum, two substances that trigger powerful dopamine responses.

In the 20th century, the tobacco industry perfected the art of addiction. Cigarette companies not only engineered products to maximize nicotine delivery but also manipulated public perception, even enlisting doctors to promote smoking as a health benefit. By the time society fully understood the consequences, Big Tobacco had already hooked millions, generating untold profits while leaving behind a trail of illness and death. It is easy to see the parallels with the opioid epidemic that has ravaged the United States in the past decades, which originated in pharmaceutical companies obfuscating the reality that their products were highly addictive at the expense of hundreds of thousands of lives.

Fast food and processed food companies followed a similar playbook. Instead of maximizing nutrition, they optimized for the "bliss point"—the precise combination of sugar, salt, and fat that keeps consumers coming back for more. These products don’t satisfy hunger; they create cravings. Meanwhile, the same corporations that profited from making people unhealthy also invested in diet brands, profiting in turn from the desire to lose weight.

This cycle—create addiction, extract profit, and at times then sell the solution—has played out across multiple industries. And in the digital age, it has accelerated to an unprecedented degree.

Modern Applications: The New Pillars of the Addiction Economy

Food and Pharmaceuticals

The rise of ultra-processed foods has led to skyrocketing obesity rates, diabetes, and other chronic illnesses. Today, 20% of American adults meet the criteria for food addiction, and the health consequences are staggering, including increased risk of heart disease, stroke, and other fatal illnesses. Yet, instead of addressing the root causes, the food and pharmaceutical industries have turned this crisis into a business opportunity.

GLP-1 drugs like Ozempic and Wegovy, which suppress appetite and help with weight loss by altering the brain’s dopamine response, have become multibillion dollar products. These drugs offer genuine benefits for many, but they also raise a troubling question: Are we simply treating the symptoms of an addiction economy while allowing the root causes—processed food engineering, aggressive marketing, and economic incentives that prioritize profit over health—to persist?

Smartphones and Social Media

While cigarettes once filled the space between meals and conversations, today, we reach for our phones. The average adult checks their phone 46 times per day, while teenagers interact with their devices an astonishing 237 times daily. Social media platforms like Facebook, Instagram, and TikTok have engineered their interfaces to maximize engagement, ensuring that users stay glued to their screens for as long as possible.

TikTok, in particular, has been described as digital fentanyl. Unlike older social media platforms, which rely on the social graph (friends and followers), TikTok’s algorithm delivers content based purely on engagement signals, learning what triggers a user’s dopamine response in real time. This creates a highly addictive feedback loop, where users can spend hours scrolling without even realizing it.

And just like with cigarettes, we’re only beginning to recognize the consequences. Rates of anxiety, depression, and loneliness have surged, particularly among young people. Schools are now restricting phone use, and some governments are considering regulations to curb social media’s impact on mental health. But as with previous addiction crises, these interventions often come after the damage has already been done.

The Attention Economy and Behavioral Addiction

If food and nicotine companies profit from physical addiction, tech companies profit from behavioral addiction. The attention economy is built on keeping users engaged for as long as possible, because more screen time means more advertising revenue and more data to build a picture of who we as consumers are to the companies that want to sell to us, data which can then also be sold.

Algorithms are designed to exploit psychological vulnerabilities. Infinite scrolling, autoplay, notification alerts—these features aren’t accidental; they are carefully crafted to hijack the brain’s reward system. Even Apple, one of the primary beneficiaries of this system, has introduced tools like Screen Time to help users monitor their usage. But like an alcoholic just counting their nightly drinks without going to meetings or working with a coach or therapist, these efforts often feel like half-measures.

The Psychological Perspective: Why Are We So Vulnerable?

At the core of the addiction economy is dopamine. While dopamine itself isn’t inherently bad, the way industries manipulate it can lead to compulsive behaviors that override rational decision-making.

Unlike natural rewards (like exercise, social connection, or creative pursuits), artificial dopamine hits from processed foods, social media, and gambling-like apps are immediate, intense, and fleeting. This leaves us in a constant state of craving—always chasing the next hit but never truly satisfied.

For individuals in recovery, this presents an additional challenge. Many people who struggle with substance use disorder find themselves turning to alternative addictions—whether it’s food, technology, or work—because the underlying reward pathways remain sensitive. Recognizing this broader addiction landscape can be a crucial part of maintaining long-term sobriety and mental well-being.

Where Do We Go from Here?

So how do we resist an economy designed to keep us addicted? While large-scale policy changes are needed, individuals can take steps to reclaim their autonomy:

1. Mindful Consumption – Recognizing which habits are driven by true need versus engineered craving can help break compulsive patterns. This applies to everything from eating to scrolling social media.

2. Digital Boundaries – Implementing phone-free times, disabling unnecessary notifications, and using screen time tracking can help reduce dependence on digital stimuli.

3. Nutrition Awareness – Understanding food engineering tactics can help shift dietary habits away from ultra-processed foods and toward whole, nutrient-dense options.

4. Recovery-Oriented Approaches – For those in addiction recovery, being aware of cross-addictions can help prevent substituting one dependency for another. Support groups and mindfulness-based practices can be powerful tools for managing cravings.

5. Advocacy and Regulation – On a larger scale, supporting policies that regulate addictive business practices—whether in tech, food, or pharmaceuticals—can help create systemic change.

   
   

The addiction economy thrives when we act on impulse, but true freedom comes from conscious choice. By understanding how our cravings are being exploited, we can begin to push back—both individually and collectively.

How can I help you?

Understanding the role of addiction in modern society isn’t just an academic exercise—it’s crucial for anyone navigating recovery or seeking healthier relationships with technology, substances, or compulsive behaviors. Whether you’re struggling with substance use, digital addiction, or the emotional challenges that come with breaking free from unhealthy patterns, support is available.

As a psychotherapist and sober coach, I help clients build awareness around their triggers, develop sustainable coping strategies, and reclaim control over their lives. If you’re interested in working together, I invite you to schedule a consultation to see how we can tailor a plan that supports your goals.

Schedule a consultation here.