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.

Related Links

Study Links Food Preservatives and Diseases

  • Nitrates and nitrites are found in a lot of foods - like bacon, hot dogs, and pepperoni - as food preservatives (Photo by Renee Comet, courtesy of the National Cancer Institute)

A new study in the Journal of
Alzheimer’s Disease finds a strong
link between some food preservatives
and an increased risk of death from
Alzheimer’s, Parkinson’s and diabetes.
Rebecca Williams has more:

Transcript

A new study in the Journal of
Alzheimer’s Disease finds a strong
link between some food preservatives
and an increased risk of death from
Alzheimer’s, Parkinson’s and diabetes.
Rebecca Williams has more:

Nitrates and nitrites are found in a lot of foods we eat: bacon, hot dogs, and even cheese and beer.

The chemicals aren’t there naturally – they’re added as preservatives. And they’re also used in fertilizers.

Dr. Suzanne de la Monte is the study’s lead author.

She says they found a strong connection between higher death rates from Alzheimer’s, Parkinson’s and diabetes and the increases in our exposures to these chemicals in our food and water since the late 1960s.

“What we’ve identified says this is certainly something I would consider very very important. Are there other things? Probably.”

She says people could be genetically predisposed to these diseases.

But she says long term exposure to nitrates and nitrites could also be playing a role in two ways: whether we get these diseases and how severe they might end up being.

For The Environment Report, I’m Rebecca Williams.

Related Links

DC Gets Tough on Disposable Bags

  • The Anacostia River in Washington DC is ridden with garbage, and plastic bags make up 20% of the trash tossed in (Photo by Kavitha Cardoza)

For years, the Anacostia River that flows through

Washington DC was widely known as the forgotten

river, lost in the shadow of the better known

Potomac. At one point, some say the trash in the

river was so thick you could walk from one side to

the other without getting wet. Today things are

better. But, most people say not enough has been

done. DC’s city council is considering a five cent

tax on every disposable plastic and paper bag with

most of the money going to cleanup efforts. As Kavitha

Cardoza reports if it passes,

the fee would be the toughest law on plastic and paper

bags in the country:

Transcript

For years, the Anacostia River that flows through

Washington DC was widely known as the forgotten

river, lost in the shadow of the better known

Potomac. At one point, some say the trash in the

river was so thick you could walk from one side to

the other without getting wet. Today things are

better. But, most people say not enough has been

done. DC’s city council is considering a five cent

tax on every disposable plastic and paper bag with

most of the money going to cleanup efforts. As Kavitha

Cardoza reports if it passes,

the fee would be the toughest law on plastic and paper

bags in the country:

Kindergartners from the Evergreen School in Wheaton, Maryland are leaning over a rail and looking at bags, cups, wrappers and other trash floating in the Anacostia River.

They’ve travelled to D.C. to learn more about, as they put it, “what kills fish.”

The five-year-olds are NOT impressed with what they see.

“Bottles, balls, yucky. It’s really, really disgusting garbage!”

The children roll up their sleeves and start pulling trash from the bank. But, it’s going to take a lot more than their small hands to clean up the mess.

Jim Connerly is with the Anacostia Watershed Society. He says Washington D.C.’s own environmental studies estimate each year 20,000 tons of trash is thrown into the Anacostia.

“It’s like a landfill on a conveyor belt.”

Studies also show plastic bags make up about 20% of the trash in the Anacostia.

When grocery bags are thrown away, many of them are swept up by rain water and carried into storm drains that flow into streams. They end up in the Anacostia.

The bags often ensnare birds and turtles. Fish eat the small torn pieces. That results in toxins making their way into the food chain.

Tommy Wells is the D.C. council member who came up with the idea of charging a nickel for plastic and paper bags.

“By charging a nickel, it really gets more into your head than your pocket. Also, it reminds you maybe I should have bought a reusable bag.”

And part of the money raised will help low-income residents buy reusable bags.

But Laurie Walker hasn’t heard about that proposal. She says, as a senior citizen on a fixed income, those nickels can add up quickly.

“Five cents is a whole lot of money, if I put it in a jar, every month when I get paid. I can buy a chicken, hot dogs, eggs for my grandchildren or for myself. I can buy a whole lot with that.”

The fee would raise nearly 2.5 million dollars a year. Besides the reusable bags, the money will fund educational efforts and return a portion to local businesses as an incentive.

The chemical industry which makes the plastic bags hopes anybody opposed to these kinds of fees or taxes will come out against this proposal. But environmentalists like the idea.

(sound of a beaver)

Back at the Anacostia River system, Jim Connerly says, with a little effort, the Anacostia could be trash-free in just a few years.


“In a perfect world, the water quality would be addressed. The thing that’s encouraging to me is that nature is always trying to seek balance. If we let the river alone, if we stop the input of pollutants, it would clean itself. It’s just that we’re not allowing the river to do that.”

Connerly and many others are hoping the Washington DC bag fee helps make that happen.

For The Environment Report, I’m Kavitha Cardoza.

Related Links

Government Fails at Food Safety

  • The reported number of salmonella cases has not gone down since 1996 (Source: Gene.Arboit at Wikimedia Commons)

Government agencies admit they need to do a better job at keeping food safe. Kyle Norris has more:

Transcript

Government agencies admit they need to do a better job at keeping food safe. Kyle Norris has more:

When you discover people are getting sick from a food bourne illness like salmonella, you want to stop others from getting sick from it as fast as possible.

A report by the Centers for Disease Control and Prevention, the US Food & Drug Administration, and the Department of Agriculture finds the government is not getting any faster.

The report found the number of reported salmonella cases each year is about 15 people in 100,000. That has not gone down since 1996.

Lola Russell is a spokeswoman for the CDC.

“We are planning to increase the capacity of state health departments so that outbreaks can be better detected and investigated.”

Russell says the CDC will work to get more “boots on the ground” to detect an outbreak. The report also indicated the FDA is looking at the best options to prevent food borne illnesses in the first place.

For The Environment Report, I’m Kyle Norris.

Related Links

Money Back for Water Bottles

  • Nationally, we go through more than 30 billion non-carbonated drinks every year (Photo by Lester Graham)

Most states don’t have bottle deposit laws to encourage people to return their empties. Only eleven states do. Now, some are expanding their recycling programs to include bottled water. Sadie Babits reports the states know requiring a deposit for the bottles will keep them from ending up in landfills:

Transcript

Most states don’t have bottle deposit laws to encourage people to return their empties. Only eleven states do. Now, some are expanding their recycling programs to include bottled water. Sadie Babits reports the states know requiring a deposit for the bottles will keep them from ending up in landfills:

Every time Mary Nemmers buys a bottled beverage, she’s pays a five cent deposit at the register.

She wants to get that money back eventually. So she saves up her bottles and once a month brings them here to New Seasons Market in Portland, Oregon.

(sound of bottles being sorted)

Nemmers thinks this is a pretty convenient system. She gets to shop while a store employee sorts and hand counts her bottles.

Today Nemmers is getting nine dollars and change for her empties. While she’s glad to get that money back, she’s excited to learn that Oregon’s bottle deposit program has expanded.

“I just got some news that they’ll take back all the cans for deposits. Not just the ones that they sell. That started in January and that saves me an extra trip.”

That’s only part of the change. People in Oregon now also get five cents for every water and flavored water bottle they return to stores. That ends up being a lot of bottles.

Nationally, we go through more than 30 billion non-carbonated drinks every year. And that number is growing. Most of them end up in a landfill.

For Heather Schmidt, it makes sense to require a deposit for these bottles. She runs the sustainability program at New Seasons.

“We’re getting more back from our customers and that’s a good thing (chuckles). And we know that there’s quite a bit of water purchased, you know, and we’re selling it we want to take it back.”

Out of the eleven states that have bottle deposit programs, Oregon is one of the first to include bottles for water and other non-carbonated drinks.

Maine includes just about every beverage bottle. Connecticut adds bottled water to its program in April. New York and Massachusetts are debating similar expansions.

Mary Nemmers says it was about time that her state recognize that something needed to be done to make sure water bottles stay out of landfills.

“Because I do a lot of walking and I’ve seen lots and lots of water bottles thrown around and in trash cans. I assume that the expansion will reduce that and I’d like to see Oregon stay on the cutting edge of recycling.”

Not everyone is thrilled.

I spoke with the president of the Northwest Grocery Alliance who told me stores want recycling off their property.

A spokesman for the major food outlet Winco said the same thing. Stores say it’s messy to deal with “garbage” and stores have to dedicate staff time to recycling.

Heather Schmidt says at New Seasons Market, they don’t mind.

“Operationally, because we’ve increased the volume, it does mean we’ve had to add some staff labor to that to process but it’s something that we’re committed to.”

While most of the bottles are hand counted at New Seasons Market stores, large chain grocery stores use reverse vending machines.

I can stick a redeemable bottle into the machine. The machine checks to make sure it’s the right kind of bottle. Once it’s accepted, the bottle gets crushed and I get my five cents. Those crushed bottles, along with the plastic ones, end up here.

(sound of recycling plant)

We’re inside a glass and plastic bottle recycling plant. It’s a labyrinth of conveyer belts and equipment. The last drops of stale beer and old soda pop in the bottles make it smell sort of like your gym shoes meet the town dump.

Sadie: “Can we check out where the plastic bottles go?”

John: “Yes, We’ll go back this way.”

That’s John Anderson. He’s the President of the Oregon Beverage Recycling Cooperative.

“Now, the plastic, we have seen an increase, but we’re only two months into this expansion at this point and it’s a slower time of year for water and flavored water.”

We stop in front of three bales of recycled plastic that remind me of massive hay bales.

I can pick out the water bottles scrunched together with a lot of soda bottles. These plastic bales will be sold to manufacturers – mostly overseas – who will turn this plastic back into something useable.

Anderson says all of the glass though, stays local and gets turned back into beer bottles.

Bottle deposits work.

The states that have bottle deposit laws have dramatically high bottle recycling rates – as high as Michigan’s 97%.

But the U.S. average is below 40%. The rest of those bottles spend forever in a landfill.

For The Environment Report, I’m Sadie Babits.

Related Links

Stores Required to Label Some Foods

  • This rule requires stores to tell you what country some of your food comes from Photo by Ken Hammond, courtesy of the USDA)

Starting this week, supermarkets are officially required to tell you where some of your meat and produce comes from. But as Rebecca Williams reports it can get confusing at the store:

Transcript

Starting this week, supermarkets are officially required to tell you where some of your meat and produce comes from. But as Rebecca Williams reports it can get confusing at the store:

This rule requires stores to tell you what country some of your food comes from.

The rule covers things like beef and pork, chicken, and vegetables.

Supermarkets have already been adding these labels over the past few months.

Deborah White is with the Food Marketing Institute. The group represents supermarkets. She says they don’t like being forced to label specific products – and the law is quirky.

“The law applies, for example, to chicken but not turkey. It applies to peanuts and pecans but not almonds and walnuts and those were decisions that Congress made.”

And there are other quirks. Frozen peas have to be labeled and so do frozen carrots. But a bag of peas and carrots mixed together doesn’t have to be labeled.

The new agriculture secretary, Tom Vilsack, says he wants to fix these quirks. He’s asking the food industry to voluntarily add more information to labels than the rule now requires.

For The Environment Report, I’m Rebecca Williams.

Related Links

Green ‘Stop-N-Shops’

  • Melissa Rosen and her husband Greg Horos opened Locali's - LA's first "ecovenience" mart. (Photo by Devine Browne)

Not that long ago, if you wanted to buy eco-friendly at the grocery store, your options might have been limited to the granola and beans in the bulk bins. Then stores started carrying organic produce. Later vegetarian fast food appeared. Devin Browne reports now eco-friendly is hitting convenience stores:

Transcript

Not that long ago, if you wanted to buy eco-friendly at the grocery store, your options might have been limited to the granola and beans in the bulk bins. Then stores started carrying organic produce. Later vegetarian fast food appeared. Devin Browne reports now eco-friendly is hitting convenience stores:

They’re called ecovenience stores and they’re showing up all over the country. The point is that they sell convenience store food, only greener.

(sound of a store)

“This is our organic hot pretzel, we have organic hot pretzels. It’s organic flour.”

That’s Melissa Rosen; she co-owns a new ecovenience store in Los Angeles, called Locali. Which is actually spelled L-O-C-A-L-I.

And they’ve got hot pretzels, but organic. Hot dogs, but grass-fed. The store even looks like a convenience store: It’s in a strip mall, it’s near a freeway. They’ve got cold drinks in the fridge and impulse buys like candy near the cash register. The customers are in a hurry, but a happy hurry. They rave about the chips

“It is a flavor explosion in your mouth, it is beyond savory.”

and the slushies.

“Slushies! There you go, the slushies are amazing.”

But then you get closer and you see that the cold drinks are not soda or beer: They’re Kombucha, the fermented tea. The candy is vegan gummy bears and organic lollipops. And the slushie, their signature item, is sweetened with agave.

There are a few 7-11 staples that are missing from the shelves, like cigarettes and lotto tickets. The owners say there are no green versions of those.

Some of Locali’s products are really pragmatic and not that exciting like energy efficient light bulbs and ecological laundry drops. Others are kind of sensational, silly, really.

“For example the vegan condoms. What is that, what is Glyde? I didn’t know my condoms weren’t vegan.”

So, vegan condoms, vegan caviar. Snow cones sweetened with brown rice syrup. They have this really big variety of products that have never been greened before.

And so the question becomes: will new green products like these, however silly, really mean new green consumers? Matt Kahn is an Environmental Economist at UCLA. HE thinks maybe so.

“So the goal might be to create buzz. That if you only sell green light bulbs and a tofu turkey burger, people might say oh yeah, that’s the green place. But if you do some truly wacky stuff, generating this green buzz, might tip, that even a Dick Cheney might come with his grandson hearing that it’s this wacky.”

Which is more or less the point – Locali wants to recruit new green consumers. Consumers who right now live in neighborhoods that don’t really have supermarkets and so they buy most of their food at liquor and convenience stores.

Of course, one of the problems will probably be price. A 16 oz slushie at Locali is $5.49, while a 22 oz slurpee at 7-11 is just $1.40. But Kahn, the economist, thinks because Locali is smaller and more flexible than say a Whole Foods, it might actually have a better shot at making it in new neighborhoods.

“And so a smaller business might have to pay only a couple hundred thousand dollars rather then multi million dollars to build a big boxed store. And that lower fixed cost of entering a market makes it more likely that smaller green stores might experiment more.”

And apparently, the ecovenience experiment is something that a lot of people want to try. In the first six days of business, the owners received phone calls from people in Seattle and DC and cities all over Southern California. And they all asked the same thing: how soon can we open a locali in our local neighborhood.

For The Environment Report, I’m Devin Browne.

Related Links

Shops Happy With New Lead Rule

  • A lead detector finds over 5000 parts per million of lead in this toy. (Photo by Lisa Ann Pinkerton)

Kids consignment shops have been worried about a new law limiting lead and other chemicals in children’s products.
Julie Grant reports store owners are glad to finally have some answers from the federal government:

Transcript

Kids consignment shops have been worried about a new law limiting lead and other chemicals in children’s products.
Julie Grant reports store owners are glad to finally have some answers from the federal government:

Amanda Cingle in is manager at Once Upon a Child. It’s part of a franchise of 300 stores that sell used items for kids.

She says the owner was concerned the new law would mean they’d have to throw out their existing inventory – or spend many thousands of dollars having it all tested for chemicals.

But now the government’s Consumer Products Safety Commission says the law will only applies to new products, not those being re-sold.

“We’re so relieved. We don’t have to worry anymore. The owner’s worry was that she was going to have to close her doors and never reopen.”

Cingle says the store has an environmental mission – to reuse and recycle products – so she’s glad they don’t have to throw everything away.

But she’s also pleased that new products will be made with less harmful ingredients.

For The Environment Report, I’m Julie Grant.

Related Links

Businesses Going Lean and Green

  • Marco's Pizza changed the size of its boxes to fit more on distribution trucks. It's also switching to recyclable plastics for chicken wings. (Photo by Julie Grant)

Times are tough for the economy,
so lots of headlines tell us that the
end is near for the burgeoning green
market. But some analysts say the
economic downturn could encourage more
companies to be environmentally friendly.
Julie Grant reports:

Transcript

Times are tough for the economy,
so lots of headlines tell us that the
end is near for the burgeoning green
market. But some analysts say the
economic downturn could encourage more
companies to be environmentally friendly.
Julie Grant reports:

When stock prices plummeted this year for Whole Foods
Market, a lot of people saw that as a sign that green
companies were wilting during this dark time in the economy.

Whole Foods has one of the best known names for natural
and sustainably made products and caters to people who
are willing to pay more for them.

“You know, it’s really easy to look at stores like Whole
Foods, or companies selling green products, and see that
they’re not doing as well as last year and saying, ‘oh, the
green economy is tanking.’”

Author Joel Makower has chronicled the rise of the green
movement in corporate America through many articles, and
in his recently published book “Strategies for the Green
Economy.”

“The fact is that no retailer, except for Wal-Mart, is doing
better than last year. They’re all doing much, much worse.
So green products sink and swim along with the overall
economy. The economy is really bad right now, so a lot of
these products aren’t doing as well.”

But Makower says the green movement has a leg up on the
rest of the economy – because what consumers are buying
is only part of the story.

(sound of Marco’s Pizza Shop)

The smell of garlic and cheese and dough baking at Marco’s
Pizza is enough to make anyone hungry when they walk in.
While some of the biggest names in the pizza biz are closing
down stores, this relatively small Ohio-based chain is
growing like gang-busters, tripling the number of stores and
franchising in 14 states.

Purchasing manager Don Vlcek says, earlier this year,
prices of everything from the mozzarella to the plastic cups
were on the rise.

“When all of the costs going into restaurants started going
up, like I’ve never seen, and I’ve been in this industry since I
was 17 years old, we wanted to keep our prices the same to
our customers. So we looked at cost cutting – mainly at the
packaging end.”

Vlcek stresses: they’re not skimping on the pizza.
Marco’s has started doing things like using paper cups
instead of plastic. The new ones are cheaper and
biodegradable. Their pizza boxes used to be colorful,
glossy, and not very recyclable.

“Now our boxes, which the industry has said is the most
impressive and highest cost box in the industry, we’ve taken
that and we’ve put new messages on it, with a non-
varnished look.”

Marco’s also slightly reduced the size of its pizza boxes, so
more fit on its distribution trucks. That’s saved transportation
costs – and lots of polluting truck travel. None of this sounds
too sexy. But these efficiencies have saved Marco’s 2.5
million dollars this year.

The cuts they made have been good for the bottom line –
and for the environment.

Industry strategist Joel Makower says there are thousands of
stories like this.

“Once companies squeeze out the waste and inefficiency
and the water, carbon, and energy intensity and the toxicity
of their products, that’s not going to come back as soon as
oil prices drop, as we’ve seen them do, or when the
economy goes bad, as it has. This is a fundamental change
in how business is being done, and this is just the
beginning.”

Makower predicts that companies will continue to innovate
new ways to save money, and that is going to benefit the
environment.

For The Environment Report, I’m Julie Grant.

Related Links

Organics Rotting in Bad Economy

  • Shopping at organic foods stores is one thing consumers are cutting back on (Photo by Ken Hammond, courtesy of the USDA)

Watching paychecks shrink and
retirement funds dissolve is making people
change their buying habits. Many are
skipping things like natural foods because
they’re seen as luxuries. But Julie Grant
reports some analysts say this is just a
short term trend:

Transcript

Watching paychecks shrink and
retirement funds dissolve is making people
change their buying habits. Many are
skipping things like natural foods because
they’re seen as luxuries. But Julie Grant
reports some analysts say this is just a
short term trend:

Michelle DeSalvo’s daughter plans to go to college next
year. But her husband might need to take a pay cut just to
keep his job. So they’re trying to save money wherever
possible. That means no more shopping at the natural foods
store.

Michelle DeSalvo: “It’s definitely more expensive. You have
to go to things that are less expensive and natural is
definitely not that.”

Julie Grant: “So what has changed in your shopping habits?”

Michelle DeSalco: “I go to Wal-Mart. (laughs) Yeah, for
food. It’s cheaper.”

Not everyone is rushing to Wal-Mart.

Brenda Fisher says her family is struggling to pay for two
kids in college, and they’re looking for different ways to buy
food. She used to stop at the butcher shop at Whole Foods
– the national, natural foods supermarket. But not anymore.

“So I would buy their meats because their meats are
incredible. So um, I just can’t afford it. I would actually like
to buy a whole cow from a farmer, because they’re cheaper.
And I just have to get the money together.”

Okay, so not everyone wants to buy a cow. But a lot of
people are moving away from things that seem more
expensive – like natural and organic products.

In recent years, those foods have seen huge sales growth.
But as the economy has turned sour, so have their sales.
Whole Foods Store has seen a considerable sales drop at its
stores. And the company’s stock prices plunged more than
70% this year.

Nancy Koehn is professor of the history of retailing and
consumer behavior at the Harvard business school.
She says some people see upscale stores such as Whole
Foods as an indulgence – and that’s not what they’re
wanting.

“I think we will see, we are seeing, a rush away from a lot of
luxury right now.”

Koehn says that’s short term. She says consumers have
been floored by the tanking of the stock market and the
vulnerability of the financial systems. And they’ve done
something we haven’t seen in 25 years: they’ve stopped
buying.

But Koehn says this is just one moment. She says people
will walk back into stores. But they will have revised
priorities for their homes and families.

“There’s no way anyone’s coming out of this moment without
being effected by it. It’s a much more complicated story than
the rush to Wal-Mart.”

Koehn says natural foods stores, like Whole Foods, and
other environmentally-centered companies, are actually in
just the right place for the long term economic trend. When
consumers start buying again, she thinks, many will spend
money in places that are taking care of workers, animals,
and the environment.

“And I think we’re going to see that the same things that built
Whole Foods, that have made the environment and our
interconnectedness so important to people, and moved that
from item number 10 or 20 on people’s lists of important
issues up to the top 2 to 4. Those aren’t going away because
we’re in the trough of a business cycle.”

Koehn expects that many people will spend their holiday
money at big box discount stores. But she says many who
feel they’ve been treated badly in the economic downturn will
go back to the companies they think treat people and the
environment better.

Koehn expects that by early next year, companies that get
behind sustainable products will wind up being the economic
winners.

For The Environment Report, I’m Julie Grant.

Related Links