I feel like we’ve economised goods and services as far as they can go, in order to be as efficient as possible to remain competitive in the market whilst providing profits and capital growth. I can’t talk here by the way as my last role I did for 3 years was effectively about how to make the good we sell more profitable.
We’ve concentrated certain goods and industries to certain places, because it is so efficient to do so. If a chip for a mobile phone costs the equivalent of $1 from Taiwan but £10 to make in the U.K. or US (made up numbers, I’ve no idea), it adds a lot on to the final cost. The equipment, workforce, government regulations, supply chain is probably all suited to Taiwan whereas starting that here would take a long time and even then is a huge risk.
A good example are the scooters my son rides. I’ve bought two now which cost £30-40 from Halfords, and both have broke through hitting slightly dodgy pavements. A kid yesterday I saw had a retro metal tricycle which looked like it was from the late 80’s but that thing would last forever. But the consumer (me in this case) wanted to spend as little as possible almost in the expectation things are made as affordable as possible with the equivalent associated quality.
It’s exactly the reason why I bought a 1960’s house versus a new build.