Everyone likes a good deal.
And for that reason, most of us have flocked to clothing stores like H&M and Old Navy for the unbelievably cheap and expansive selection they offer.
T-shirts for five bucks; jeans and dresses for under $20. It’s almost like you can’t afford to not buy it.
Clothing is cheaper now than it’s ever been: today average Americans spend less than four percent of their total income on their wardrobes, about half what was spent 50 years ago, according to the Bureau of Labor Statistics.
It’s almost cheaper today to buy a whole new wardrobe than to pay to wash your old one (a bit of an exaggeration, yes, but really not all that far off).
But you know the saying that there’s no such thing as a free lunch? Same thing goes with your $5 t-shirt – it comes with some steep hidden costs. It has too, right? It doesn’t take a genius to figure out that there’s no possible way retailers like H&M could be making billions in profits selling clothing at such low prices without there being some catch.
So what are we, the consumers, not seeing?