Above is an excerpt from the audiobook version of my new book, Considerations. That’s me doing the narration.
The text version can be found here.
It’s amazing what we can get for twenty dollars these days. Sure, it sometimes seems like inflation just won’t quit, and the costs of living add up to a frightening sum, and a pack of gum could once be had for less than a dollar, but now costs several.
But this is mostly a slow-burn perspective; difficult to see clearly because it moves so steadily.
Our buying power for most things (in the developed and developing worlds) has been on an upward trend for generations, and our lack of appreciation for this fact stems not from a dearth of wielded purchasing power, but from the lack of synchronicity between that power and our expectations of how much power we should possess, as explained and reinforced by marketing messages. Demand isn’t created for a product or service unless you keep people aspirational, so it’s in the best interest of many to keep us wanting more than we have.
Beyond this dollars-and-cents cost for things, there are other, less obvious expenses. Price tags that we don’t tend to see unless we look closely, but which are worth acknowledging nonetheless.
Opportunity cost, for example, is what we give up in favor of what we choose to buy/consume/spend our time with. When I purchase a phone, for instance, the opportunity cost is every other phone on the market, and the possibility of not having a phone, and the software/networks/brand associations of those other phones and lifestyles. The cost of my phone, then, is not just the number on the click-to-buy button.
There’s also long-term monetary cost, which includes things like recurring payments and debt; not just for the item in question, but for interest accrued on other debt that you could have paid off instead of making your purchase (if I buy a phone instead of paying off debt, the cost of that phone goes up because of the extra debt accrued through my non-payment).
Or how about the resource and sustainability cost of our purchases? Smartphones are the end-result of a massive supply chain connecting all the components of the device, allowing them to be constructed by machines and people who must be paid and fed and housed and (in the case of the machines) maintained. These supply chains stretch far and wide, encompassing mines and roads and caravans of trucks and back-channel deals with politicians. This includes the technologies required to work with the materials and mold them into useful shapes, which makes use of scientific knowledge that’s been conceived and refined over many centuries — with the most core knowledge tracing back to the beginning of humankind, and the most small and specific going back only years or months. This all coalesces into something incredibly intuitive and valuable (aided by the millions of manpower hours that have gone into developing the software) and yet so common as to be barely noticeable.
Every single thing we buy has a price, and that price is typically far larger than we think while swiping our cards at the checkout terminal or one-click shopping online. This doesn’t make our purchases inherently harmful or wrong: if anything, it makes them all the more impressive for the chain of people and events and resources that have been linked up to make the end product available for common consumption!
But it’s valuable to understand that the simple act of buying a phone — or anything — has repercussions beyond the passive ‘buy and move on’ mentality we often adopt when procuring a new possession.
We consider how something will improve our lives, make us feel, improve the perception others have of us (and the perception we have of ourselves), and myriad other variables associated with the capitalistic exchange of value. It only seems prudent that we consider the bigger picture, the true cost of things, as well.