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Economics has many categories for “goods”. “Luxury Goods” are items that people buy more of as their income rises, as opposed to “Necessity Goods” like food and shelter, whose demand is unrelated to income. Examples of luxury goods include fine jewelry, expensive sports cars and designer clothing. The Lipstick Effect is the theory that during an economic calamity, people buy more less costly luxury goods. Instead of buying a fur coat, people will buy expensive lipstick. The idea is that people buy luxury goods even during economic hardships, they will just choose goods that have less of an impact on their funds. Other less expensive luxury goods besides cosmetics include expensive beer and small gadgets.
Today is different from yesterday. And what will happen today will merely affect our future. Life is constantly changing. But why is that nowadays, we value more of the material things that were not really important? The Lipstick effect wants to tell us that we are now setting aside the more valuable things in life. It is alright to have luxuries but setting aside important things than these things weren't good. For example, you have a good income because of your position in a company, yet you choose to buy things like gadgets and cosmetics instead of food and necessary things. Don't you think that it will last for a lifetime? Of course no, we should always think beyond. What we have today doesn't mean that we'll still have it tomorrow. At least if we buy food, we will surely be full.
"Wow. She's very rich. I wish I have that things too" .. That's what all of us would probably think if we saw someone having these kinds of gadgets.
But when you see people like this,
How would you react?
These people lack food to eat and don't have the shelter to stay on. I would rather choose not to see people like these than to see people having their gadgets. I hope that everyone have the same decision as I have. If only I have all the riches, I will help them rather than buying things that were not important. Come to think about it.
If we also think of the other people's needs than buying unnecessary things for ourselves, even though problems rises, then everybody would be happy.
Life will be worth living.
