No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Thursday, May 7, 2026
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Economy

The Fast Fashion Dilemma – Econlib

by TheAdviserMagazine
5 months ago
in Economy
Reading Time: 4 mins read
A A
The Fast Fashion Dilemma – Econlib
Share on FacebookShare on TwitterShare on LInkedIn


Shoppers are filling their carts, both literally and digitally, with last-minute gifts. One tempting purchase, whether for gifting or for showing up in style at a holiday sweater party, is ultra-cheap clothing from Shein. Like many around the world, the French hunt for deals in December.

During a recent interview with journalist Thomas Mahler, I learned that fast fashion has become a political flashpoint in France, the country known for haute couture. French lawmakers are considering measures aimed at threatening the economic viability of Shein, the Chinese company that dominates ultra-cheap clothing globally. 

Millions of French consumers shop through Shein regularly. Mahler asked me: Can politicians persuade consumers to buy domestically-made clothes instead, in a country with a proud tradition in domestic fashion? My reply was that this dilemma extends beyond France. Wealthy countries do not manufacture much apparel at home. It’s cheaper to produce at scale in lower-income countries, and residents of rich nations rarely aspire to work in garment factories. 

The French government’s proposed intervention is an “eco-penalty” on fast-fashion items, a tax that could eventually add €10 per garment. The purpose is to make French-made clothing more competitive while also discouraging the environmental excesses of disposable fashion.

Fast fashion generates garbage. Trend cycles in cheap apparel last for only weeks instead of seasons. Shein adds many new items daily, while a traditional French fashion house releases only a few designs each year. Much of the clothing is so cheaply made that it’s worn only a few times before being thrown away. Even charities struggle to accept donated garments because of the flood of unwanted clothes. Discarded polyester shirts pile up in landfills at best, or pollute rivers and beaches at worst. Synthetic fibers shed microplastics. These are real externalities. 

France’s approach thus combines modern environmentalism with a familiar protectionism. It may be politically easier to sell a tariff when it’s framed as discouraging “wasteful” consumption rather than only protecting domestic producers.

Revealed preferences, meaning the preferences people demonstrate through their actual purchasing behavior rather than their stated ideals, show that consumers want affordability and variety. That puts them at odds with protectionist policymakers. When a Shein dress costs €15 and a French-made equivalent costs €100, even patriotic consumers face a hard trade-off. The price gap reflects not just labor costs, but supply-chain efficiencies, economies of scale, and a fundamentally different business model.

Even if these measures succeeded in reducing the amount of clothing bought from Shien, would the French people take garment manufacturing jobs that are “brought back” to France? French youth unemployment hovers above 17%, but garment work doesn’t match the aspirations of an educated workforce. In the United States, the few apparel factories that remain largely employ recent immigrants. Is trying to rebuild a mid-20th-century industrial base like trying to resurrect typewriters? Nostalgia is not an economic strategy in a technologically advancing world. Furthermore, would robots soon “take” most jobs that could be done by French people today in garment manufacturing? 

Mahler also asked me whether people could simply buy fewer clothes to help the environment. It’s an interesting question because we also see this dilemma with food in the rich world today. Calories were once expensive; now the binding constraint is waistlines, not income. Clothing has followed the same pattern. After the Multi-Fiber Arrangement ended in 2005, global textile trade boomed. For example, one Chinese city now produces more than 20 billion pairs of socks per year, which they can export at low prices. For many consumers, the price of clothes is not the main constraint on how many garments they purchase. The result has been the democratization of style and abundance.

Reasonable people can debate the appropriate policy response. A Pigouvian tax on new garments to fund recycling or reduce waste, akin to a carbon tax, is worth considering. Better labeling, such as durability ratings, could help consumers make more informed decisions on how long garments will last so they can appropriately trade off price versus quality. Cultural norms are shifting such that some consumers brag about thrift-store finds rather than new purchases, somewhat reducing the flow of new clothes to landfills. 

While addressing the excesses of cheap fashion, we should resist romanticizing the past. We should not return to a world in which only the rich could afford variety and comfort. Countries like Bangladesh and Vietnam have reduced poverty by joining global garment supply chains. Bangladesh’s GDP per capita was under $500 in 1998; today it is over $2,500. 

Fast fashion is neither a triumph nor a catastrophe. It is the outcome of solving an important problem: how to clothe billions of people affordably. The French, along with many of us around the world, now face a more pleasant question: how much is enough once basic scarcity has been conquered?

Someone from 1850, wearing his one patched coat, would be astonished to learn that we are debating whether people buy too many clothes. That we have the luxury to ask is evidence that, despite its problems, the system has delivered something extraordinary.



Source link

Tags: DilemmaEconlibFashionFast
ShareTweetShare
Previous Post

Intuit CEO says Gen Z is staving off recession by putting it on plastic

Next Post

Tesla: Bullenfalle oder perfekte Einstiegschance?

Related Posts

edit post
There’s ‘no chance’ Warsh will be able to get the Fed to cut rates, Paul Tudor Jones says

There’s ‘no chance’ Warsh will be able to get the Fed to cut rates, Paul Tudor Jones says

by TheAdviserMagazine
May 7, 2026
0

Incoming Federal Reserve Chair Kevin Warsh won't be looking to cut interest rates and in fact may want to consider...

edit post
Where California Went Wrong | Mises Institute

Where California Went Wrong | Mises Institute

by TheAdviserMagazine
May 7, 2026
0

(This is based upon a talk I gave at a recent Mises Circle meeting in San Diego.)I have lived in...

edit post
Is Economics Finally Becoming Trustworthy?

Is Economics Finally Becoming Trustworthy?

by TheAdviserMagazine
May 7, 2026
0

“There are two things you are better off not watching in the making: sausages and econometric estimates. This is a...

edit post
Understanding the Rise in CEO Age

Understanding the Rise in CEO Age

by TheAdviserMagazine
May 7, 2026
0

Yves here. I have to confess that I had no idea that the average age of CEOs had risen in...

edit post
America’s Housing Stress Is Rising, But This Is Not 2008 All Over Again

America’s Housing Stress Is Rising, But This Is Not 2008 All Over Again

by TheAdviserMagazine
May 7, 2026
0

Foreclosure filings across the United States have now climbed to their highest level in six years, with ATTOM reporting a...

edit post
Surging gas prices are hitting lower income households harder, study shows

Surging gas prices are hitting lower income households harder, study shows

by TheAdviserMagazine
May 6, 2026
0

A gas station sign displays prices in Washington, D.C., U.S., May 1, 2026.Annabelle Gordon | ReutersLower-income consumers are compensating for...

Next Post
edit post
Tesla: Bullenfalle oder perfekte Einstiegschance?

Tesla: Bullenfalle oder perfekte Einstiegschance?

edit post
ACN Earnings: Key quarterly highlights from Accenture’s Q1 2026 financial results

ACN Earnings: Key quarterly highlights from Accenture’s Q1 2026 financial results

  • Trending
  • Comments
  • Latest
edit post
Gavin Newsom issues ‘final warning’ amid California’s dire housing crisis — what’s at stake for millions of residents

Gavin Newsom issues ‘final warning’ amid California’s dire housing crisis — what’s at stake for millions of residents

May 3, 2026
edit post
Florida Warning: With Senior SNAP Benefits Averaging 8/Month, Thousands Risk Losing Assistance in 2026

Florida Warning: With Senior SNAP Benefits Averaging $188/Month, Thousands Risk Losing Assistance in 2026

April 27, 2026
edit post
Minnesota Wealth Tax | Intangible Personal Property Tax

Minnesota Wealth Tax | Intangible Personal Property Tax

May 6, 2026
edit post
10 Cheapest High Dividend Stocks With P/E Ratios Under 10

10 Cheapest High Dividend Stocks With P/E Ratios Under 10

April 13, 2026
edit post
Exclusive: America’s largest Black-owned bank launches podcast with mission to unlock hidden shame holding back generational wealth

Exclusive: America’s largest Black-owned bank launches podcast with mission to unlock hidden shame holding back generational wealth

April 29, 2026
edit post
NYC Mayor Mamdani knocked Ken Griffin in pied-a-terre tax promo. His firm calls the move ‘shameful’

NYC Mayor Mamdani knocked Ken Griffin in pied-a-terre tax promo. His firm calls the move ‘shameful’

April 23, 2026
edit post
eBay bans GameStop CEO’s account after he listed store signs to fund his  billion eBay offer

eBay bans GameStop CEO’s account after he listed store signs to fund his $56 billion eBay offer

0
edit post
Trump Ends Federal Foreclosure Protection Measures—Prepare For a Wave of Deals to Hit the Market

Trump Ends Federal Foreclosure Protection Measures—Prepare For a Wave of Deals to Hit the Market

0
edit post
Chart of the Week: Big Tech Isn’t as Big as You Think

Chart of the Week: Big Tech Isn’t as Big as You Think

0
edit post
*HOT* Luxury Towel Warmer only  shipped!

*HOT* Luxury Towel Warmer only $49 shipped!

0
edit post
Stop Fundraising Like It’s 2021: The Bootstrapped Hybrid Model Is Quietly Winning

Stop Fundraising Like It’s 2021: The Bootstrapped Hybrid Model Is Quietly Winning

0
edit post
Trump small business loans: the  billion clawback

Trump small business loans: the $22 billion clawback

0
edit post
eBay bans GameStop CEO’s account after he listed store signs to fund his  billion eBay offer

eBay bans GameStop CEO’s account after he listed store signs to fund his $56 billion eBay offer

May 7, 2026
edit post
*HOT* Luxury Towel Warmer only  shipped!

*HOT* Luxury Towel Warmer only $49 shipped!

May 7, 2026
edit post
Tata and JSW near bn bet on domestic EV research

Tata and JSW near $1bn bet on domestic EV research

May 7, 2026
edit post
Ethereum Price Slips as ETH Whales Offload Holdings, What’s Next?

Ethereum Price Slips as ETH Whales Offload Holdings, What’s Next?

May 7, 2026
edit post
Chart of the Week: Big Tech Isn’t as Big as You Think

Chart of the Week: Big Tech Isn’t as Big as You Think

May 7, 2026
edit post
12 Government Benefits You Didn’t Know You Qualify For After 60

12 Government Benefits You Didn’t Know You Qualify For After 60

May 7, 2026
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • eBay bans GameStop CEO’s account after he listed store signs to fund his $56 billion eBay offer
  • *HOT* Luxury Towel Warmer only $49 shipped!
  • Tata and JSW near $1bn bet on domestic EV research
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.