Just keep buying?

What if we simply stopped spending? Let’s vote with our wallets.

With all the price inflation going on, the one thing consumers have control over on the supply-and-demand seesaw is our spending. Prices too high - I don’t like it - therefore I am not buying (looking at you, McDonald’s). If enough of us do that, then the proprietors will have no choice but to lower prices. At least that’s what I was taught in economics 200.

Of course, people are still happily(?) buying. That’s why we have not seen a reduction in prices. The entrepreneur wouldn’t lower them if current pricing is sustainable in terms of customer count. Any savings in production cost should be pocketed as increased profit margin. It’s not greed, it’s math. People aren’t running charities. When high prices actively hurt the bottom line, only then will they go down.

Nearly half of Americans cannot cover a $1,000 emergency, and consumer credit card debt is at record highs. That tells me that lots of people are recklessly spending money well into the red, seemingly undeterred by inflation. Please don’t give me the bullshit about folks being poor and unable to afford necessities - thereby going into debt: my parents made less than $2,000 a month for a household of four for the longest time, and yet they still managed to save money over the years.

Overspending is the problem. During the pandemic, when supply chains were impacted, new vehicle inventories were low. A classic supply and demand problem: low inventory, high transaction prices. Because the American appetite for cars is insatiable. I never got mad at dealer markups, because they exist precisely because someone out there is willing to pay. If absolutely nobody was willing to pay, then the markups wouldn’t exist.

It only takes one. And it only takes consumers continually spending for the current high prices to remain. That’s not going to be me, though. I am hugely price elastic. Printed books have increased in price, so now I begrudgingly buy the digital Kindle version.

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I choose you.

Signature required

I recently (finally) pressed purchase on the Fujifilm XT-5 camera. Bought it on Amazon, of course, to get that sweet 5% cash back. (Mind you that is only if you are an Amazon Prime member, along with using the Chase Amazon Prime card.) For such a hefty purchase in terms of value, it’s good to see that a signature is required to accept delivery. No need to fear the delivery person dropping it off nonchalantly in the front yard, exposing thousands of dollars worth of camera gear to potential thieves. That would not be ideal.

Similarly, I helped a friend buy a new camera of his own (A Sony A7 Mark IV) on Amazon. (He did not have Amazon Prime.) Receiving that package also called for an adult signature. No big deal; there’s people home most of the time. However, the Amazon-branded delivery person did not adhere to the requirements! He merely dropped off the camera at the front door as if it were a package of toothpaste. No knock, no door bell ring, no signature attained. That’s not very nice.

I would have been rightly pissed if not for that fact my housemate was home and intercepted the package right when it was dropped off. I’ve higher expectations for an Amazon-branded delivery person to actually follow the instructions. Conversely, the Fujifilm XT-5 was delivered by UPS, and they made sure to get a signature before delivery. I know this, because nobody was home to receive it at the time, so I had to re-route the package to a local pickup spot. By the way, that costs $7.99 now at ups.com. That’s extorting pure profit just because they can, if you ask me.

This reminds me of the time I bought my (many thousands of dollar) Yamaha piano. That was also unceremoniously dropped off with nary a signature required. Granted, if you have the strength to steal a 70 pound box of unwieldy length, carry it through a front garden and over a fence, then I think you have the right to keep it. Thankfully that did not happen, and someone was immediately home at that time as well.

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Art Decoration.

I bought something

Well, I did it! It took three months, but I finally made a superfluous purchase since the COVID-19 lockdown began in March. With so much economic uncertainty in the air, I was in absolute savings mode from the very beginning, hoping that I wouldn’t need that money, but it would be a lifesaver if I do. Other than the standard amount of bills that never seems to go away (hello, Porsche), I spent as little money as possible on extraneous things. I did make a point to support my local restaurants by ordering out more frequently than I ever had before.

But enough virtue signaling; with some money burning a hole in my savings account, the itchy shopping fingers are always on active duty. I would be lying if I said I didn’t peruse the Internet for things to buy, from yet another set of headphones, all the way to a whole entire car (a used 2016 Mazda Miata Sport, please). Lucky for me I didn’t pull a trigger on any of it, until yesterday afternoon when a creator I’ve been following for the longest time offered a set of prints for sale on his storefront. As a self-proclaimed artist myself, it’s a mission of mine to support fellow artists that I like.

Joey Lee’s brand - The Chronicles - of automotive storytelling is something I’ve kept tabs on for over a decade now. He combines together the three things I like most: cars, writing, and photography. I really admire his endeavor of striking out and finding his own freelancing niche; as someone who has to answer to corporate overlords, it’s a sort of example of what my life can look like if I ever had the balls to do the same. But then I would surely have to sell the GT3, which as of right now is not something I can remotely entertain; I am still madly in love with that car.

Anyways, Joey threw up a set of prints up for sale, and a particular one that caught my eye is of a Honda Civic hatchback doing a night blast on the freeways of Osaka. Not a day goes by that I’m not nostalgic about my trip to Japan from last summer, so having the print up on the wall will be a nice reminder and inspiration. The problem then becomes, are frame places even open during these times?

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Let me borrow some of that.

Adulting

I wonder when did it begin the transition in becoming more “adult” and being less cavalier with money usage. Back in my college days and earlier in my work career, not only did I spent every dollar I made, anything I want to purchase, once reconciling with the finances (at least I wasn’t leveraging credit cards to the hilt), I’d simply go buy it - no hesitation whatsoever. 

These days, there’s immense amounts of hesitation. Big spending purchases are only done after massive amounts of analysis; pro and con chart, utility factor, and asking the ultimate question: do I really need it? Many times over I could’ve bought new wheels for my Miata, but prudent sensibilities have overruled and won out repeatedly. A stunning new OLED television would be splendidly nice indeed, but my now ancient 1080p set still soldiers on after five years. The five year ago me would’ve bought it already (precisely how I came to own the TV), without any feasibility study. The rationale was simple: if there’s a want and the bank account agrees, then it’s mine. 

That mind-set has evolved. For example recently it took weeks to make the final decision on a new iMac. 

Perhaps it’s all the books I’ve read about the dangers of materialism and how one should have financials in reserves in case shit hits the proverbial fan. Or perhaps I’ve come to realize that plenty of the items I bought back when didn’t necessarily add to my permanent happiness. It’s fleeting is what I’m attempting to say. Buying car parts and modifications just may be the stupidest thing ever when considering I don’t even own that car anymore. The current car remains, hard as the mind tries, completely stock. 

I now see my little brother at the same stage in life: in the midst of college and having a part-time job with no worldly adult stuff to worry about. When boxes with Amazon Prime taped over arrive home at regular intervals, it’s quite the nostalgia.