upworthy

economics

Joy

Man uses the shoe aisle to explain a troubling economic trend in middle-class American life

"The thing is, most people don’t want longevity anymore. They want new."

Remember things being built to last?

It’s been proven that over the past few years, Americans have been dealing with shrinkflation, where food companies reduce the sizes of their products while the price remains the same at the grocery store. You see this in fast food restaurants when you pick up a burger and feel like your hand has grown a few inches, and at the supermarket when you buy a box of cookies, it weighs less than it did a few weeks ago. Companies use this strategy when they think you’ll be less likely to notice a dip in quantity than a hike in the price.

Another big trend in retail is fast fashion. People are buying cheaper garments made from low-quality materials. These products last about as long as the trend, so people throw them away and buy the next hot thing. This can be a real problem because fast fashion harms the environment and leads to exploitative labor practices.

A TikToker named Tom (@SideMoneyTom), popular for making videos about consumer products, recently went viral for a video where he called out shoe manufacturers for dropping their quality while keeping prices high. “So many of you guys want to shoot the messenger, but look, it's not my fault shoes are made out of Styrofoam and oil now,” Tom says in a TikTok with over 528,000 views. “It's literally every shoe you look at now. It's not even just the cheap ones. I can find hundred dollar plus pairs of shoes all day long with glue squeezing out of their Styrofoam cracks.”

@sidemoneytom

Replying to @Oscar Magaña shoes are done #fyp #shoes #foryou

Tom notes that recently, shoes have been made with foam soles instead of rubber. Both have pros and cons. Foam is a little more comfortable, but rubber lasts a lot longer. Rubber shoes keep shape and support over time and are much more durable. Conversely, foam shoes compress over time, losing their support and comfort. When companies sell cheaper shoes that wear out more quickly, they make much more money because you must keep replacing them.

In the video, Tom adds that many companies that used to have shoes made with rubber heels, such as Carhartt and Timberland, have switched to foam. This is an interesting choice for brands that pride themselves on selling durable products.

Cora Harrington, a writer and lingerie expert, says that companies aren't entirely to blame. Americans don’t want to pay higher prices. “People don’t exactly want to pay more for all that stuff,” Harrington told Vox. "So what has to happen if everything is more expensive and the customers still want to pay the same price, something has to be cut and that’s often going to be the quality of the garment.”

“There is an entire generation of consumers at this point that doesn’t actually know what high-quality clothing feels like and looks like,” Harrington continues. “It gets easier, I think, for consumers to just not know any better.”

@sidemoneytom

Replying to @donkles #shoes #fyp #sketchers #nike

Many commenters have noticed the decline in shoe quality and praised Tom for pointing it out. "I am so happy I’m not the only one who is baffled by shoes being made of styrofoam and then being upcharged for them," one commenter wrote. "When shoes started being named some version of 'Air Light Cloud float,' my thought was it was because they went from quality rubber to cheap foam and less materials,” another commenter added.

Tom believes the decline in shoe quality is an example of a more significant trend affecting American consumers' products: quality is decreasing while prices remain the same. “The quality of everything is going to hell, and the prices are going up," Tom concludes his video. "The problem is, so many of us have just become used to it that we keep buying it, and we basically allow them to dumb down the quality of everything. Everything in our lives. These shoes are just the tip of the iceberg. Start thinking about it in your life. What are you gonna allow to be garbage quality?

Pop Culture

Here’s a paycheck for a McDonald’s worker. And here's my jaw dropping to the floor.

So we've all heard the numbers, but what does that mean in reality? Here's one year's wages — yes, *full-time* wages. Woo.

Making a little over 10,000 for a yearly salary.

I've written tons of things about minimum wage, backed up by fact-checkers and economists and scholarly studies. All of them point to raising the minimum wage as a solution to lifting people out of poverty and getting folks off of public assistance. It's slowly happening, and there's much more to be done.

But when it comes right down to it, where the rubber meets the road is what it means for everyday workers who have to live with those wages. I honestly don't know how they do it.

Ask yourself: Could I live on this small of a full-time paycheck? I know what my answer is.

(And note that the minimum wage in many parts of the county is STILL $7.25, so it would be even less than this).

paychecks, McDonalds, corporate power, broken system

One year of work at McDonalds grossed this worker $13,811.18.

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The YouTube channel Just Frugal Me discussed the viral paycheck and noted there's absolutely nothing wrong with working at McDonald's. More than 2 million people in the U.S. alone work for the fast food giant. The worker's paycheck shows they put in 72 hours over the pay period making $8.75 per hour. Before taxes, that's $631 for the week. Just Frugal Me's breakdown is even more eye opening, breaking down this person's pay after taxes and weighed across average rent and utility costs. Spoiler Alert: the total costs for basic necessities far outweighs what this person is making even while working 12 hours per day. But they do make too much to qualify for Medicaid, meaning they will have to go out and buy their own health insurance.

Even in states like California, where the state's $20 minimum wage ensures that people earn nearly three times as much as the federal minimum wage, which remains as low as when this paycheck first made the rounds nearly 10 years ago.

Still, even for a worker that maxed out at 40 hours per week and took zero vacation or sick time, that's only a little over $41,000 per year. That's barely half the median wage in the state of $78,000 and far below a sustainable living wage in cities like Los Angeles.


This story originally appeared nine years ago. It has been updated to reflect new information.

Photo by Maxim Hopman on Unsplash

The Sam Vimes "Boots" Theory of Socioeconomic Unfairness explains one way the rich get richer.

Any time conversations about wealth and poverty come up, people inevitably start talking about boots. The standard phrase that comes up is "pull yourself up by your bootstraps," which is usually shorthand for "work harder and don't ask for or expect help." (The fact that the phrase was originally used sarcastically because pulling oneself up by one's bootstraps is literally, physically impossible is rarely acknowledged, but c'est la vie.)

The idea that people who build wealth do so because they individually work harder than poor people is baked into the American consciousness and wrapped up in the ideal of the American dream. A different take on boots and building wealth, however, paints a more accurate picture of what it takes to get out of poverty.

Author Terry Pratchett is no longer with us, but his writing lives on and is occasionally shared on his official social media accounts. Recently, his Twitter page shared the "Sam Vimes 'Boots' Theory of Socioeconomic Unfairness" from Pratchett's 1993 book "Men At Arms." This boots theory explains that one reason the rich are able to get richer is because they are able to spend less money.

If that sounds confusing, read on:

Pratchett wrote:

"The reason that the rich were so rich, Vimes reasoned, was because they managed to spend less money.

Take boots, for example. He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of OK for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars. Those were the kind of boots Vimes always bought, and wore until the soles were so thin that he could tell where he was in Ankh-Morpork on a foggy night by the feel of the cobbles.

But the thing was that good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that’d still be keeping his feet dry in ten years’ time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet."

In other words, people who have the money to spend a little more upfront often end up spending less in the long run. A $50 pair of boots that last five years essentially cost you $10 a year. But if you can only afford $10 upfront for a pair of boots that last six months, that's what you buy—and you end up paying twice as much over a five-year period.

There are so many areas in which this principle applies when you're poor. Buying in bulk saves you money over the long run, but you have to be able to afford the bulk cost up front. A reliable car that doesn't require regular repairs will cost more than a beater, but if the beater is all you can afford, that's what you're stuck with. You'll likely spend the same or more over time than if you'd bought a newer/higher quality car, but without the capital (or the credit rating) to begin with, you don't have much choice.

People who can afford larger down payments pay lower interest rates, saving them money both immediately and in the long run. People who can afford to buy more can spend more with credit cards, pay off the balances, build up good credit and qualify for lower interest rate loans.

There are lots of good financial decisions and strategies one can utilize if one has the ability to build up some cash. But if you are living paycheck to paycheck, you can't.

Climbing the financial ladder requires getting to the bottom rung first. Those who started off anywhere on the ladder can make all kinds of pronouncements about how to climb it—good, sound advice that really does work if you're already on the ladder. But for people living in poverty, the bottom rung is just out of reach, and the walls you have to climb to get to it are slippery. It's expensive to be poor.

When people talk about how hard it is to climb out of poverty, this is a big part of what they mean. Ladder-climbing advice is useless if you can't actually get to the ladder. And yet, far too many people decry offering people assistance that might help them reach the ladder so they can start taking advantage of all that great financial advice. Why? Perhaps because they were born somewhere on the ladder—even if it was the bottom rung—and aren't aware that there are people for whom the ladder is out of reach. Or perhaps they're unaware of how expensive it is to be poor and how the costs of poverty keep people stuck in the pit. Hopefully, this theory will help more people understand and sympathize with the reality of being poor.

Money makes money, but having money also saves you money. The more money you have, the more wealth you're able to build not only because you have extra money to save, but also because you buy higher quality things that last, therefore spending less in the long run. (There's also the reality that the uber-wealthy will pay $5,000 for shoes they'll only wear a few times, but that's a whole other kind of boots story.)

Thanks, Terry Pratchett, for the simple explanation.


This story originally appeared two years ago.

Health

Artists got fed up with these 'anti-homeless spikes.' So they made them a bit more ... comfy.

"Our moral compass is skewed if we think things like this are acceptable."

Photo courtesy of CC BY-ND, Immo Klink and Marco Godoy

Spikes line the concrete to prevent sleeping.


These are called "anti-homeless spikes." They're about as friendly as they sound.

As you may have guessed, they're intended to deter people who are homeless from sitting or sleeping on that concrete step. And yeah, they're pretty awful.

The spikes are a prime example of how cities design spaces to keep homeless people away.


Not all concrete steps have spikes on them, but outdoor seating in cities like Montreal and Tokyo have been sneakily designed to prevent people from resting too comfortably for too long.

This guy sawing through a bench was part of a 2006 protest in Toulouse, France, where public seating intentionally included armrests to prevent people from lying down.

Of course, these designs do nothing to fight the cause or problem of homelessness. They're just a way of saying to homeless people, "Go somewhere else. We don't want to look at you,"basically.

One particular set of spikes was outside a former night club in London. And a local group got sick of staring at them.

Leah Borromeo is part of the art collective "Space, Not Spikes" — a group that's fed up with what she describes as "hostile architecture."

"Spikes do nothing more than shoo the realities of poverty and inequality away from your backyard — so you don't have to see it or confront what you can do to make things more equal," Borromeo told Upworthy. "And that is really selfish."

"Our moral compass is skewed if we think things like this are acceptable."

charity, social consciousness, artist

A bed covers up spikes on the concrete.

assets.rebelmouse.io

The move by Space, Not Spikes has caused quite a stir in London and around the world. The simple but impactful idea even garnered support from music artist Ellie Goulding.

"That was amazing, wasn't it?" Borromeo said of Goulding's shout-out on Instagram.

books, philanthropy, capitalism

Artist's puppy books and home comforts.

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"[The project has] definitely touched a nerve and I think it is because, as a whole, humans will still look out for each other," Borromeo told Upworthy. "Capitalism and greed conditions us to look out for ourselves and negate the welfare of others, but ultimately, I think we're actually really kind."

"We need to call out injustice and hypocrisy when we see it."
anti-homeless laws, legislation, panhandling

A message to offer support in contrast with current anti-homeless laws.

assets.rebelmouse.io

These spikes may be in London, but the U.S. definitely has its fair share of anti-homeless sentiment, too.

Spikes are pretty obvious — they're a visual reminder of a problem many cities are trying to ignore. But what we can't see on the street is the rise of anti-homeless laws that have cropped up from sea to shining sea.

Legislation that targets homeless people — like bans on panhandling and prohibiting people from sleeping in cars — has increased significantly in recent years.

For instance, a report by the National Law Center on Homelessness & Poverty that analyzed 187 American cities found that there's been a 43% hike in citywide bans on sitting or lying down in certain spaces since 2011.

Thankfully, groups like "Space, Not Spikes" are out there changing hearts and minds. But they need our help.

The group created a video to complement its work and Borromeo's hoping its positive underlying message will motivate people to do better.

"[The world] won't always be happy-clappy because positive social change needs constructive conflict and debate," she explained. "But we need to call out injustice and hypocrisy when we see it."

Check out their video below:

This article originally appeared on 07.24.15