Complacency vs. Contentment

Recently I heard someone complain that complacency was one of the worst human characteristics one can have. Being complacent suggests smugness, laziness, aloofness and other negative connotations. But whenever I hear the word "complacent" I always think--but isn't that also contentment?? And contentment brings out warm and fuzzy feelings of happiness, love and general well being.
So what's the deal??? I looked both words up in my mini Websters dictionary, and alas, no clarity was achieved. Complacency means smug, which by definition is: self-satisfied. Content is simply defined as "satisfied". Huh? In other words being self-satisfied is bad, but being satisfied is good, yet they technically mean the same thing. (ok, so maybe a smug person brags about it--but when is bragging a bad thing in our society?)

So that's what I was afraid of. These words are so similar that nobody wants to admit that -hey contentment isn't really a good thing either. These two words fascinate me so, because our whole western civilization is driven by the fear of complacency. By being complacent , (i.e. content) one would be satisfied with their small house, older car, outdated jeans and ragged lawn....and that would be bad for the economy and even worse, your neighbors would laugh at you behind your back.
Of course, I can't say I recommend contentment with bad hygiene, deviant behavior and such, but economic contentment would be a relief! Not only to our environment but help curb some stress to boot. But with economic contentment, comes a stagnant economy--which is a shame, that we can't develop a whole new system--based on people actually being satisfied and that being a good thing.