The second hand economy, and why it's killing us
In the current economic climate, we are all getting more and more desperate for a bargain. So much so that we're willing to compromise on other things like quality, and whether the product is new or not.
I've actually written a post which goes into a bit more detail on this, which can be found here.
In post however, I look at the market for second hand goods, and how it effects economy overall. The idea a second hand economy is similar to that the 'hidden economy', but as that mainly focusses on illegal trades, I chose to avoid that title.
So what is the 'second hand economy'?
Well, it's all quite self explanatory so I'll keep it short and sweet. It's all about buying second hand goods. For example, I bought my iPhone second hand of Amazon, and many people do the same. Ranging from phones to clothes, so many goods are being bought second hand. Purely to save money.
So why is it such a problem?
To explain is, I'll use an example. Say we have two people, Bert and Fred. Bert has the iPhone 4S and Fred has an old Samsung phone. Both want an upgrade. Now Bert is offered a new iPhone 5 and decides that he will get it and sell on his used iPhone 4S, which Fred buys. So now both of them have a brand me phone and are happy, so what's the problem?
Well, because Fred is buying a second hand product, Apple only receive one sale rather than the two they would get if they both bought new iPhones.
So, what we really need is for people to stop caring about prices as much and buy brand new goods.
Now you're probably thinking that avoiding second hand goods will only benefit the companies, and not individual consumers right?
Well if companies get more sales, they make more profit. If they make more profit they pay more corporation tax, and if they pay more tax, then more services can be provided which benefit you. Simple.
So hopefully I haven't rambled for too long, and if I could leave you with one thought it would be this. Buy a new phone. Now,
I've actually written a post which goes into a bit more detail on this, which can be found here.
In post however, I look at the market for second hand goods, and how it effects economy overall. The idea a second hand economy is similar to that the 'hidden economy', but as that mainly focusses on illegal trades, I chose to avoid that title.
So what is the 'second hand economy'?
Well, it's all quite self explanatory so I'll keep it short and sweet. It's all about buying second hand goods. For example, I bought my iPhone second hand of Amazon, and many people do the same. Ranging from phones to clothes, so many goods are being bought second hand. Purely to save money.
So why is it such a problem?
To explain is, I'll use an example. Say we have two people, Bert and Fred. Bert has the iPhone 4S and Fred has an old Samsung phone. Both want an upgrade. Now Bert is offered a new iPhone 5 and decides that he will get it and sell on his used iPhone 4S, which Fred buys. So now both of them have a brand me phone and are happy, so what's the problem?
Well, because Fred is buying a second hand product, Apple only receive one sale rather than the two they would get if they both bought new iPhones.
So, what we really need is for people to stop caring about prices as much and buy brand new goods.
Now you're probably thinking that avoiding second hand goods will only benefit the companies, and not individual consumers right?
Well if companies get more sales, they make more profit. If they make more profit they pay more corporation tax, and if they pay more tax, then more services can be provided which benefit you. Simple.
So hopefully I haven't rambled for too long, and if I could leave you with one thought it would be this. Buy a new phone. Now,