Advertising encourages people to spend, even in some times to do it by going into debt. This in turn leads to more economic activity, more widgets ordered, which in theory should mean we can reap benefits of economies of scale, we can better amortize costs, etc. Which leads to R&D and innovation, which helps technological change, which leads to a more efficient economy, which leads to more surplus, which means more wealth created, etc.
Now, of course we could do this probably without spending so much on ads, but just saying ads are zero-sum is incorrect, because there's a bigger picture.
Social status is again not so simple. Because after a certain group size there will be value in being different. See also the classic equilibrium between strategies in any game (as in game theory).
That said, yes the race to the bottom is a real problem, see the oft cited Meditations on Moloch: https://slatestarcodex.com/2014/07/30/meditations-on-moloch/
Now, of course we could do this probably without spending so much on ads, but just saying ads are zero-sum is incorrect, because there's a bigger picture.
Social status is again not so simple. Because after a certain group size there will be value in being different. See also the classic equilibrium between strategies in any game (as in game theory).
That said, yes the race to the bottom is a real problem, see the oft cited Meditations on Moloch: https://slatestarcodex.com/2014/07/30/meditations-on-moloch/