How Much Do Those Socks Really Cost?

There is an understanding by ecological and environmental economist that the cost of the products we purchase does not reflect the true cost of the product when social and environmental impacts are being considered. The average person may have at some point caught themselves wondering at how its possible to make a item of clothing for some of the extremely low prices they are being offered at. This is the issue environmental and ecological economists take into consideration that neo-classical economists do not. When considering aspects of society that typically fall outside of the realm of the economic system, we understand that business decisions will have impacts on society and the environment. These costs are not factored into the prices under the neoclassical system. These costs often are viewed as externalities and are paid for by society at large later down the line in the form of health care and environmental cleanup or conservation costs. Ecological and environmental economists propose a solution to the issue of these externalities and unloading the cost on society through the process of full cost pricing. Under this type of pricing scheme, all of the impacts of the creation of a particular product, clothing in this case, is included in the price. This may reduce profit margins for the business and may increase the cost of the product.

I have been taught since a young age to view purchases as investments. I believe this mindset comes initially from my grandparents and the generations before that, who did not have much but would invest in well made, high quality products that were built to last. I believe the same can be said of clothing. Consume less by spending more on classic, higher quality and priced items that will last. Reducing our individual need to consume decreases the impacts of clothing manufacturing. In addition, if you choose to purchase items that are ethical or fair trade, all the power to you, and I hope to make those a priority as well someday, but for now, I do what I can.