Restrictions on movement have eaten into Americans' pandemic savings, with roughly $2 trillion in Americans' savings depleted as of March, according to data compiled by Bloomberg, raising concerns about future spending.
To make matters worse, what were once common purchases for the poor and those barely surviving are now fashionable among the wealthy, and prices are rising.
What are seven things that used to be for the poor but are now things that the wealthy spend their money on?
And when a rich man says, “I was poor in the beginning,” he means:
Thrifty Shopping
Thrift stores were once places where people on a budget would shop to find the best bargains they could. Going to vintage stores has become quite trendy, which has resulted in prices rising.
“This is down to socially conscious people and Macklemore,” says Touchdown Money founder Scott Lieberman. “Over the last decade, people have become much more responsible about reusing items, even when they could buy new. Macklemore's song 'Thrift Shop' certainly didn't hurt the trend of secondhand being cool.”
A few years ago, an article in the Wall Street Journal highlighted how as shopping at thrift stores becomes more popular, it's becoming harder to find bargains at places like Goodwill and the Salvation Army. To make matters worse, more people are reselling thrift store items on platforms like Poshmark and Mercari. Gone are the days when a poor person could just go to their local thrift store and buy clothes.
Farmers Market
Local markets, such as craft fairs and farmers' markets, were once places where low-income earners could get affordable produce and unique items for gifts. Now, farmers' markets and other fairs seem to have become popular destinations visited by the wealthy.
“Before the Slow Food movement came along, farmers' markets were a great way to get cheap fruits and vegetables,” Lieberman says, “and then wealthier people started going to farmers' markets on weekends to look for fresh produce.”
Others are buying locally made goods at markets and trying to resell them online, which also leads to higher prices.
Convention
“Fan conventions used to be a cheap way for fans to meet actors and talk about their favorite shows,” Lieberman said, “but now they're a place for die-hard fans to go meet their heroes and buy merchandise.”
Convention fees have risen, making it harder for the public to meet their favorite celebrities and athletes in person. In addition to high admission fees, fans have taken to online forums like Reddit to complain about celebrities charging over $100 for a quick autograph. With the demand for celebrity photos and meet-and-greets on the rise, the days of a $20 autograph seem long gone.
festival
Another type of event that was once a popular pastime for the lower classes was attending festivals. These days, billionaires and celebrities can be found attending festivals like Burning Man. Instead of commuting or staying in tents like the rest of us, the wealthy charter flights in and live in luxury campervans that are fully furnished, air-conditioned, have personal chefs, and charge six-figure prices for meals.
small house
A minimalist lifestyle centered around a tiny home was once an option for people looking for affordable housing who couldn't afford to live in a big city. Today, tiny homes range in price from $30,000 to $70,000, according to HomeGuide. As tiny homes become more popular among the wealthy, lower-income earners may be unable to afford the space, limiting their living options.
Unique living environment
Speaking of tiny homes, another category being infiltrated by the wealthy is unique housing options, from “fix it up” projects to warehouse living. As developers rush to turn spaces like schools and gyms into residential options, there are concerns that affordable housing options may not exist for those who need them.
Fixing up old houses as a DIY project was once an opportunity for the lower classes to get into the real estate market, but now these types of properties are more often purchased by the wealthy.
Public transport and cycling
Lower-income earners have traditionally relied on public transport and cycling to get to work, but in recent years, a growing interest among wealthier households in urban living and environmentally friendly options has pushed up prices.
According to CNBC, cycling and fishing have become the top hobbies for the wealthy and are activities that lower-income earners have traditionally relied on as affordable entertainment. As these hobbies become more popular, prices are rising, which could make them too expensive for those who rely on cycling as transportation.
These are seven categories that once only poor people would buy, but that the wealthy are now spending their money on. Only time will tell if prices will continue to rise and turn these splurges into full-blown luxuries for some.
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