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Cheap

Cheap

By Ellen Ruppel Shell

The High Cost of Discount Culture. Penguin Press, 2009.

5.0 / 1

16 mins read

13 Key insights

A brief summary of Cheap

A thought-provoking study of how and why America’s consumers stopped caring about quality products and started caring about low prices, and the economic effects that followed this “bargain hunter” mindset.

Key insights in Cheap

1
What do you get from this book? An in-depth analysis of America’s destructive spending habits and their economic effect
3
Mass production and buying in bulk cut costs, lower prices, and change the way America sells and manufactures goods
4
Sam Walton and Eugene Ferkauf follow the “Supermarket Model” and alter America’s Merchant-Consumer Relationship for the worse
5
Emotions overtake rationality and create the illusion of getting a good deal even when you’re not
6
Outlet malls promote “brand dilution,” and “markdown money” gives power to the retailers
7
Ikea’s “flat packaging” reduces shipping and labor costs, but it’s also destroyed modern-day craftmanship in lieu of bargains
8
“Elastic” and “inelastic” goods are driven by consumers and their reaction to fluctuating prices, which helps keep inflation in check
9
Exported crops and subsidies destroyed family-owned farms, creating all-time low food prices that spiked unexpectedly in 2008
10
China’s unfair labor practices and deceitful manufacturing tactics result in dangerous products and low wages for American workers
11
“Creative destruction” is a difficult but necessary process of capitalism; however, “perfect competition” hurts the economy
12
Summary of the key insights
13
Selected critiques in brief
14
Final word

Who should read Cheap

Economists • sociologists • teachers • accountants • historians • small business owners

About the author of Cheap

Long-time journalist Ellen Ruppel Shell has spent her professional career researching, studying, and writing on the cause and effect of evolving cultures, policies, and economics with a special emphasis on science. She maintains regular contributions to The Atlantic Monthly while educating future generations at Boston University.

author avatar

Ellen Ruppel Shell

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