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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."

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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?

This article originally appeared in March.

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Democracy

Millennial shares a spot-on theory about why his generation and Gen Zers are so burned out

They're not lazy, they're exhausted.

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A woman is feeling major burnout.

Freddie Smith is a popular TikToker and host of The Freddie Smith Podcast, where he talks a lot about income inequality and finance from a down-to-earth perspective. One of Freddie’s biggest topics of focus is how the younger generations, millennials and Gen Z specifically, have it a lot harder than their Gen X and baby boomer counterparts. Recently, he described why he believes the younger generations feel so burned out: They are spinning their wheels and not getting ahead because of the rising cost of living. This counters the boomer notion that young people are entitled and lazy.

“They're working 40 hours a week, but at the end of the month, they have nothing to show for it. So if you're not making any progress and you look back five years and go, damn, I made $300,000 in the last five years or I made $400,000 in the last five years and I have nothing,” Freddie says. “If, anything, I have $25,000 in debt, that's gonna create burnout cause you feel like you just put in 5 years of work and have nothing to show for it.”

@fmsmith319

Why Millennials and Gen Z are facing burnout

Freddie adds that the younger generation's inability to get ahead leaves them constantly strained. They are stuck in apartments and can’t grow their families, or if they do, they don’t have the same quality of life that they were raised with.

“It's the 30% increase in rent prices where people are spending 40% of their money on rent, you're still being taxed 20, 25, 30%. People just don't have any money,” Freddie adds. “People aren't having kids, and they're unable to start families. People are struggling financially, fighting financially, and suffering in relationships. This is all decline in living standards.”

stressed woman, stressed millennial, financial stress, burnout, gen z stress, young womanA young woman is stressed about her future.via Canva/Photos

Feddie’s numbers are backed up by research, and the biggest significant issue that younger generations face is the price of home ownership. Adjusted for inflation, in 1985, the average home cost $96,985 in today's money. However, the average price of a home today is a whopping $426,100. Rent is a little better, but still tough. The average rent in 1985 cost $1,031 in today’s dollars; in 2023, the average rent is $1,406.

In a video published in November 2024, Freddie did the opposite and shared five reasons baby boomers had it much easier than millennials and Gen Zers.

  1. You could buy a house for 30 to fifty thousand dollars
  2. Union jobs were more prevalent
  3. College actually worked
  4. Social Security was actually strong
  5. The invention of 401(k)s
@fmsmith319

Why Millennials and Gen Z have it harder today compared to boomers

“The boomers always come at us and say ‘Why are you saying it was easy I was living paycheck to paycheck. You don't realize how hard it was.’ Look at all the advantages you had and how hard it still was,” Freddie says. “Think about the kids today, they cannot buy a house, union jobs aren't available, college is completely out of whack. They're spending 80 grand to get a job for $50,000. It's backwards.”

Freddie makes a strong case for millennial and Gen Z burnout. Because, face it, there’s nothing more exhausting than grinding away at something and not moving an inch. At the same time, things only become harder. Rent goes up. A carton of eggs is $8; if you are fortunate to have money in a 401k, it no longer feels safe. “Humans are good at adapting,” Freddie concludes his video. “But there's a fine line between adapting and being taken advantage of. And I think we're being taken advantage of.”

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Learning

In two sentences, finance guy crushes the idea of buying a new car. But people disagree.

Here's why people are still doing it.

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A woman gets the keys to her new car.

There are many reasons to be squeamish about spending money in today’s economy. Interest rates are high, trade wars may drive inflation, and financial experts say we may be headed for a recession. That comes after the post-COVID period, when the process of everyday necessities, such as rent and groceries, went sky-high.

There’s a lot of economic uncertainty out there, but that won’t stop some of us from needing a car. And, of course, those are getting more expensive, too. The average car cost $49,740 in January, nearly an all-time high. Part of that is inflation, but it’s also because Americans love buying nice cars, and more are choosing luxury models. So now, to purchase a new car at $49,740, with zero dollars down and a 5-year loan, would cost over $950 a month. That’s a lot of money for something that will only decrease in value.

Real estate expert and author of “Retire FIlthy Rich,“ Ravi Sharma, wasn’t shy about sharing his thoughts about buying a new car on TikTok. The post received over 1.2 million views.

"Controversial topic: That $50,000 car loan that you finally paid off after 5 years cost you $62,000 (due to interest). That car is now worth $20,000 due to depreciation. Losing $42,000 in 5 years would be seen as a bad investment, yet people are still buying new cars. Thoughts?"

@personalfinancewithravi

Controversial Topic - What’s your thoughts about this? 🤔 #personalfinancewithravi

Is it financially smart to buy a new car?

Sharma’s logic is hard to argue with. A car is a depreciating asset that will lose its value over time. In fact, according to Kelly Blue Book, the average new car loses 20% of its value after the first year. That number grows to over 60% after five years. So, why not buy a car that’s five years old, costs less money, and is significantly cheaper to insure?

Strangely, most people in the comments pushed back against Sharma’s logic. "You forgot to factor in the benefit of owning that vehicle and the pleasure of driving it. For most, it's priceless. Not everything in life is about making money," Patty wrote. "I have 3 bad investments and loving them. We only live once. Enjoy,” Rich added. Others noted that even though the car's value goes down, you got use out of the vehicle so it's not a total loss.

new car, finance, ravi sharmaA woman inspects her new car. via Canva/Photos

There were a few people who agreed with Sharma. "Yes! Car payments are one of the top wealth killers. I have always bought used and paid cash,” a commenter wrote. "Amen. I’ve never purchased a brand-new vehicle. If you want to be a millionaire, don’t live like one,” another added. "Just driving the new car off the lot depreciates it by 20-25%. Buying pre-owned, someone else took that depreciation. Don't believe me? Buy a $50k new car then try to sell it tomorrow,” a commenter wrote.

Many people pushed back against Sharma because buying a new vehicle gives them joy. But the real question is, how long does that last before it just becomes your everyday car and no longer has the wow factor it had when you drove it off the lot? Further, going back to our car that cost $49,740 and about $950 a month, what if you bought a car for half the price and invested the $475 a month of the payment in a sensible mutual fund? After 5 years at 6% of growth, that would amount to over $32,000.

new car, finance, ravi sharmaA woman gets the keys to her new car.via Canva/Photos

With the constantly rising cost of living, it’s good to consider what it really means to make a big purchase and whether the joy of something new is worth the loss that comes with spending versus investing. Ultimately, the decision comes down to one’s values and financial priorities. Is short-term satisfaction worth the long-term cost when opting for a used car means more financial freedom tomorrow?

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Family

Mom shares the major reason why people can't afford to have children and how to change it

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A couple realizes that can't afford having a child.

Since 2014, the U.S. birthrate has declined by about 2% a year. In 2023, just 3.59 million babies were born, the lowest number since 1979, when the overall US population was about 120 million lower. The precipitous drop in the American birthrate could lead to significant problems with the social safety net because there won't be enough young workers to pay into social security to take care of retired people.

In 2023, the fertility rate was 1.6 births per woman, significantly lower than the 2.1 births per woman necessary to sustain the population. There are many reasons why people aren't having as many children as they did in the past. A big one is that modern American life provides people with so many different lifestyle options that people believe they can live a fulfilled life without children. Others are also concerned about bringing a child into the world, given the state of the environment.

Cost is a significant factor among those who want to have children but are putting it off until their financial situation improves. Thirty-six percent of childless people under 50 say they cannot afford a child. A big reason for the cost is childcare, which has increased 36% over the past decade.

@sheisapaigeturner

People are choosing to have no kids or fewer kids because they simply cannot afford them. The cost of childcare has gone up exponentially over the last 10 to 20 years. On average in the state of Massachusetts it’s about $20,000 a year per child. These rates are unsustainable for most families, which is why more and more people choosing not to have children. Affordable childcare would not only benefit families and children, but it would benefit our economy and society as a whole ##childcare##daycare##daycarelife##childcarecrisis##millennialmom##momsoftiktok##newparents##workingmom

Paige Connell, known as @sheisapaigeturner on TikTok, is a working mom of four who, after seeing what it costs for childcare in Massachusetts, took to TikTok to call for change. “How do you afford kids here? Because nobody knows how anybody is paying for this," Connell shared. “For an infant, for five days a week with 10 hours of care is $664 a week. That is just shy of $35,000 a year for one child, and the price does not drop that much when they hit pre-K,” noting that it costs $521 a week for a child in pre-K, about $28,000 a year.

Things get worse when parents have multiple children to go to daycare, which could run up to $60,000 yearly. Who has an extra $60,000 lying around to pay for childcare? “That is unsustainable for most families. And yes, the cost goes down slightly as they get older, but that doesn't account for that rate sheet, [which is] the annual increase every single September," Conell continues.

childcare, daycare costs, inflationA teacher taking care of children at a daycare.via Canva/Photos

Things get even more dire as the costs of mortgages and other necessities have risen astronomically over the past few years. "The older generations have zero idea how serious younger people are when they say we can't afford kids," TwinDadTim wrote in the comments. "Yup. My husband and I are both professionals who make good money, and we just had our first (and likely only) child. Daycare, diapers, and formula together cost as much as our mortgage," J.TT added.

Connell believes that the only way to solve this is for the government to subsidize childcare costs, as they do in many other developed countries. Americans spend the highest percentage of their incomes on daycare compared to other developed nations. “If we had affordable childcare, it would not only benefit families and children it would benefit the economy. It would benefit businesses and it would benefit us as a greater society. The economy would be better for it,” Connell concludes her video. “This is not just a parent problem, right? But like people constantly are looking at adults who are married or of birthing years and saying, ‘Why aren't you having kids? And we’re looking around saying, ‘How could we possibly have kids when we can't even afford to buy a house?’”

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