Interview: The Price of Cheap Goods

  • Ellen Ruppel Shell writes that we spend about 80% more in a discount environment. (Source: Urban at Wikimedia Commons)

In this recession, we are looking at money
differently. A bargain – getting things cheap –
has been the all-consuming goal. Ellen Ruppel Shell has written a new book entitled
‘Cheap: The High Cost of Discount Culture.’ The
Environment Report’s Lester Graham talked with
her:

Transcript

[Please note: the following transcript is for a shorter version of the interview. If you would like a complete transcript, please contact us.]

In this recession, we are looking at money
differently. A bargain – getting things cheap –
has been the all-consuming goal. Ellen Ruppel Shell has written a new book entitled
‘Cheap: The High Cost of Discount Culture.’ The
Environment Report’s Lester Graham talked with
her:

Lester Graham: Your book tells the story of how we came to value cheap, but, you know, my dad used to say, ‘cheap things aren’t good and good things aren’t cheap.’

Ellen Ruppel Shell: I think that retailers and multinationals have gone really far to make us not think like that. Your father insisted on value. You know, there’s an old Russian saying, ‘I’m too poor to be cheap.’ You know, this is something that people used to take for granted – we used to know that we got what we paid for. Now, how did this common wisdom get forgotten?

Graham: Most of the products we get, we throw away – because they are so cheap.
We don’t have to worry about the cost of repairing them, because we can simply replace them with something brand-new.

Shell: Absolutely, and, of course, that disposability has been marketed to us as a big advantage. And I’ve also gotten that comment from folks, ‘Well, you know, who cares? I’ll just throw it away. I don’t want something that lasts a long time. I want something new all the time.’ Our relationship with objects has really become distorted – I mean, the very idea that you would buy shoes knowing, almost as you leave the store, that they’re not going to last. And, studies show, that if you believe that, you don’t take care of them. It’s a self-fulfilling prophecy. You assume they’re going to fall apart.

Graham: Your book makes it sound as though we’re in a spiral, downward, in pursuit of cheap goods. Why do you make that argument?

Shell: Well, I think it’s a spiral we might, now, have the opportunity to pull ourselves out of. But, yes, I do think it’s a spiral – the idea that prices have to go lower and lower. And the reason for this, of course, is that since the 1970s, incomes in the United States have been essentially flat, controlling for inflation. And even going down somewhat, for most Americans. At the same time, three-quarters of our income goes to pay for fixed costs – those things we can’t live without – healthcare, education. So, what have these low priced goods done for us? Well, I argue, not a lot. It’s made tee-shirts, and shorts, and other things, maybe cheaper than ever before, but we have sacrificed – in terms of our wages, our job security, and our stability as an economy – as a consequence of these increasingly low prices, this incredible – what we used to call ‘predatory’ – pricing.

Graham: Many of us feel we can only afford ‘cheap.’ What are you suggesting we do?

Shell: My goal in writing this book was to get consumers to re-think why they shop in the first place. We spend about 80% more in a discount environment. And, then, we’re getting what we think are these amazing deals. And this triggers in our brain this kind of game-playing behavior – we want to make all these, you know, we want to win. Do we go to buy things that are going enhance our life and add value to our life? Or, is it a game-playing exercise? And I think most of us would say, rationally, well you know, look, ‘I go to purchase things that are going to enhance my life.’ And, if that’s the case, I think that you will actually spend less money, you will buy fewer things, and you’ll think harder about why you’re buying those things, and you’ll get precisely what you want at the price that’s going to work for you.

Graham: Ellen Ruppel Shell is the author of the book ‘Cheap: The High Cost of Discount Culture.’ Thanks very much for your time.

Shell: Thank you. It’s been fun.

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