In a recent report journalists found that the economy was changing how people spend. Buying a home is simply out of reach for many people, so rather than give up on the “American Dream” they spend more money on things like small luxuries, experiences, and lifestyle choices. Others are choosing between kids OR a house. In some homes, it's between essential healthcare OR rent. Times are grave, and quite different than previous generations.
On the other side, while large companies like Microsoft and Eli Lilly are seeing soaring profits and tech companies in AI are seeing record spending, there's no doubt this year has been really hard on small makers, a lot of small businesses are closing down. Raw materials are skyrocketing, and that in turn pushes up all the costs for makers. We have to raise our prices - not to make a quick buck, but literally just to stay afloat.
Where does that leave us? In the past people reverted to the dollar store and cheaper food from Aldi and Walmart. However, the UN produced a report that showed global agrifood systems generate at least $10 trillion to $12 trillion in hidden environmental, health, and social costs every year. That’s roughly 10% of global GDP ( from the World Economic Forum) and that was from 2023, before our current economic situation.
How about clothes? Sadly fast fashion as an industry is responsible for 8% to 10% of global carbon emissions, surpassing all international flights and maritime shipping combined. It doesn’t help us to support that kind of cost. With an economic crisis fueling a growing ecological one, I think we have to choose more wisely. By being selective about where our spend is going, we can have a better impact and get the most out of where we are now.
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