Introduction

Clothing prices determine (Dr. Claudio). As the prices and economics of clothing continue to fluctuate, so will customers' attitudes when purchasing garments. While name brands such as Zara or Prada capitalize on the high exclusivity of their products, stores such as Goodwill or the Salvation Army seek to meet the clothing needs of low-income communities in the US. (Mahbub) Recently, the West has seen a significant shift in the fashion world paradigm. While high fashion brands have flourished in the free markets, a counter-revolution now seeks to override the hierarchy and perception people have of the type of clothes people wear. Specifically, the recent trend by Generation Z now popularizes the idea of being an ethical-conscious consumer. Instead of buying new apparel, the recent trends now support finding value in old clothes that have now become romanticized. The second-hand, used clothing industry in the United States has witnessed growing popularity as it now symbolizes being perceived as fun, cheap, and sustainable (Mccarver et al). This paper concludes that the popularity of secondhand fashion has had the unintended consequence creating harms of low-income communities by pricing them out of the previously afforded secondhand clothing.

Sub Lens – Prices vs Cost of Living

The current state of American secondhand clothing prices has gone out of control. According to a report by Thredup “1 out of 3 Gen Ze’s prefers to buy second-hand items” (Dr. Beldad & Rendel 3). When Gen Z or Millennials get questioned about the reasoning behind seeking out thrifted clothing, Dr. Beldad – Professor at the University of Twente Faculty of Behavioural, Management explains how Gen Z are “not officially in the labor market and do not yet receive a steady income” (Dr. Beldad & Rendel 9) as their primary motivator for thrifted clothing. However, many thrift stores have recently increased prices on secondhand clothes (Dr. Beldad and Rendel). This establishes a problem within the market as while these thrifted companies may see this as a win, those with lower incomes who work regular 9 to 5 jobs will have more problems being able to afford basic clothing. Although Gen-Z and millennials may also have legitimate financial issues, those with tight budgets who are much older could have even more problems as they may have a higher risk of having a family to take care of which makes these higher prices heartbreaking. While Dr. Beldad & Rendel examine the price of thrifted clothing itself, Dr. Etherington – a Professor Innovation & Business at University of Staffordshire – examines how COVID has exacerbated poverty as “large sections of the population are reliant upon insufficient incomes to maintain a basic standard of living” (Dr. Etherington et al 2). Although the prices of secondhand clothing may increase, it becomes important to note how other factors outside of the economy interact and, in this case, exacerbate issues which compound. It creates a situation where a few extra dollars for some used pants becomes more important for low-income communities as post-COVID recovery has made them significantly more vulnerable to the volatility of prices. While the prices of secondhand clothing have increased, the degree of influence the trend of thrifting becomes debatable.

Sub Lens – Demand vs Inflation

Although both the higher demand of secondhand clothing and higher monetary supply contribute to the prices of goods, the question of what degree matters as it determines the level of impact the trend of thrifting has caused. Jochen Strähle - School of Textiles and Design Reutlingen University – confirms how the “steady growth in the secondhand clothing market. A long time it was linked to…higher priced apparel” (Strähle 169). Intuitively, it also makes sense. If higher demand of secondhand clothes has risen, then it would give places such as Goodwill to increase their prices in response. However, although the higher demand and prices of thrifted clothing have similarly risen, correlation doesn’t explain causation. A paper by Professor Alberto Cavallo of Harvard Business School notes how “annual inflation was 1.02% compared to just 0.13% in the CPI and low-income households were experiencing nearly twice as much inflation” (Cavallo). Despite the seemingly low numbers thrown by Professor Cavallo, inflation has forced prices up regardless of the trends. However, the demand for secondhand clothing still impacts the price of clothing, albeit, not being the sole explanation for the prices of secondhand clothing.

Sub Lens – Foreign Markets 

Thrifting has the perception of solving and reducing the amount of physical waste produced by clothes getting shipped off the foreign areas. However, if not the case, then it puts to question the whole purpose of thrifting altogether. Lucy Norris - Department of Anthropology at UCL – published in the ScienceDirect journal that for secondhand clothing, “60% is exported to developing global markets via free trade not fair-trade principles” (Norris). Since thrifting doesn’t have the alleged benefits of reducing waste, it makes the issues of prices for low-income communities a steeper consequence. However, the trend of secondhand clothing may also bring economic benefits to foreign, low-income communities. Sharon Parsons – GCU at the College of Doctoral Studies – notes how “these shops, once only considered a part of the shadow economy – often tax-exempt, less expensive, and focused on both interpersonal and economic interactions (James et al., 2007), have become an economic force with global sales projected to increase to $36 billion by 2024 (Evans et al., 2022)” (Parsons 3). That $36 billion dollars from increased demand may equate to more jobs or increased productivity in developing parts of the world. However, the lack of free-trade principles Norris mentions may spell economic abuse in those foreign markets which could negatively impact the local communities affected by thrifted clothing. As it becomes relevant that the trends of sustainable clothing continue in reaction towards unethical practices, companies still exist with agendas in the spaces alongside consumers. The spotlight then focuses on what businesses can do to benefit low-income markets outside of their country of origin.

Sub lens – Who’s Responsible?

The fashion industry produces 150 billion garments a year and 87% (40 million tons) end up in a landfill. While it has become clear that the reality of thrifting in the US has caused great harm to low-income communities, both the thriftier and reseller hold some responsibility. The question then becomes of how much responsibility. Rachel Peters - Bachelor of Fine Arts at the University of Arkansas – assumes that “there is no solution to the mass production of garments that can be tackled solely by the consumer” (Peters 23). While Peters may correctly assess that consumers don’t own the shops, promote the goods, or resale the clothes, she might come from a place a some bias. As a student and not a business owner, it becomes a conflict of interest for her generation – Gen Z – to carry the weight of gentrification the trend of thrifting has caused. Meanwhile, Dr. Luz Claudio – writer Environmental Health Perspectives – concludes that “consumer awareness about the fate of clothing through its life cycle may be the best hope for sustainability in the fashion industry” (Claudio). While the fashion industry physically upholds the practices people condemn, companies ultimately respond to demand. If no one smoked, then Tabacco companies would wither. Yet, the desire to consume in an alleged “sustainable way” which justifies even more thrifting and buying plays into the hand of those looking for opportunities to capitalize. P

Conclusion

Thrifted clothes were supposed to be the alternative to new clothes. By reviewing the economic lens of US secondhand garments, it becomes clear that the industry has faced gentrification or displacement of low-income communities. The alleged sustainability of thrifting has ultimately bracketed out low-income communities who originally benefitted from the cheap prices of used goods. The things at stake go beyond used clothing becoming more expensive. The gentrification of thrifted clothing reinforces and justifies wasteful and consumerist attitudes that become hypocritical towards the issues that younger generations try to address. The idea that the youth should buy more instead of consuming less spells disaster to millions of low-income families both outside and inside the US. To move forward, consumers must become aware of the products and power that they hold whenever they shop even at a retail business. The perception of thrifting being the solution instead of an alternative or supplement may risk the potential harms on the people Gen Z have developed a conscious for.