http://www.storyofstuff.com/
Annie Leonard discusses how the $4.99 she paid for her radio can not possibly cover the costs that go into making the radio.
The other costs are 'external costs'.
Describe your understanding of 'external costs'. Rewatch that segment or use another resource if needed to help your understanding of this concept.
Can you think of any other items that we can buy that seem to be priced way below what they should be priced?
Subscribe to:
Post Comments (Atom)
6 comments:
According to what I understand, it is similar to a biproduct in biology/chemistry. It is what the producer or consumer creates or imposes on another producer/consumer. So for example, the person selling or driving a car. An external cost would be polluting the environment. I'm not sure if that's entirely correct, but that's what I read from another website.
Anyways, something that I think is totally underpriced are clothes. Especially now that they have stores like Steve and Barrys. Half of my closet is probably full of their clothes. Why? Because they are cheap and of good quality. There is barely ANYTHING over 20 dollars in there and maybe not even over 15. The amount of effort and work put into making those sneakers/shirts/jeans/jackets doesn't seem like they would only be sold for 8 dollars each.
The exhuast certainly is an external cost. This could be explained by a pedestian breathing in the exhaust, getting asthma, and having to go to the doctor and having their health care, or themselves, pay for their care. That cost is not figured in to the cost of gas.
As for the $8 shoes/ clothes possible external costs could be poor work conditions, no health care for workers, cheap materials, and generally very low wages.
For example, American Apparel makes their clothes in LA, using non sweatshop labor. The employees make more and therefore the clothes cost more.
What do you think the workers get paid who make $8 shoes?
How many hours/ week do you think they work?
Do you think they get vacation days, sick time, health benefits?
Hmm...I have to ask my brother if they actually work in such bad conditions. My brother works for Steve And Barrys. I'll post up what he says when I find out.
what about the reverse? what about designer clothes, shoes and bags that are crazy expensive? who is making these clothes, because i can't imagine Michael Kors or Anna Sui sitting there and sowing each and every item in their fabulous stores...
This video is extremely interesting, and i love the sarcasm. My understanding of external costs is the money that is reduced from the "middle man." In this case the middle man is just a person that profits form transports and other things, but the people that work hard for that item tyo get in our hands. In the "Chain" the external cost are taken from the laborers and other people between the factory and your home.
The perect example is Big Companies that have enough profits to own fast factories and pay low wages to any employee. These include Walmart, et al... However, the part of me that cannot resist conterarguing my own thoughts (that annoying capitalist little guy inside my head), always ask about the poor peopel of the U.S. It is obvious that of course sweatshops and other horrid labor is a wrong doing, but mini-capitalist-me says that the ppor ppl of the United States cannot afford American Appearel but only Walmart? Clothes are a necessity and many are poor and may not be able to buy 20 dollar shits!!?!?
To me, 'external costs' means the money that was put into making the product. These costs may not necessarily translate into the price of the product once you buy it at the store. A perfect example of items that are not priced at what they should is the store Steve and Barry's. It is mostly a men's clothing store with items priced no more than 20 dollars. In fact, several months ago nothing was priced over EIGHT dollars. This store sells sweatshirts, jackets, t-shirts etc. Of course the clothing isn't absolutely top quality, but it is relatively good clothing.
Going back to what Lindsay was saying, I really want to know more about these high end lines. Is the way Prada and Chanel prices their products the way those items should really be priced (including those "external costs")? I feel as if some people complain about the poor working conditions other people may have to produce your things, but then they also complain about "expensive" items.
Post a Comment