Virginia Postrel points to the advantages of having extra stuff during economic downturns. Using clothing as an example, she argues that having a full closet makes you more economically resilient because it gives you a form of savings which you can draw upon when you have to cut expenses.
There is merit to that idea. But what about expenses that just evaporate? Going to restaurants and ordering food? Clubbing and drinking? Buying decorative merchandise (to give a fictional example, I find myself appalled by how few books and how many incredibly expensive DC and Star Trek paraphernalia there are at Sheldon’s house… though I suppose there is a reselling network on eBay and among collectors)? Taking immature-hedonist holidays where nothing is learned and no value is added to the self? Luxury food of little added nutritional value? Taxi fares?
Taxi fares can be incredibly efficient if they avoid the cost of car ownership. They also save time in locations where parking spaces are scarce and taxis are plentiful.
Of course there are also times and places where a personal auto, a rental car, or public transit may be the more rational choice. I’ve used all of the above at different times and places. But I certainly don’t place taxis in the same class as Star Trek paraphernalia and fancy restaurant meals.
Virginia Postrel points to the advantages of having extra stuff during economic downturns. Using clothing as an example, she argues that having a full closet makes you more economically resilient because it gives you a form of savings which you can draw upon when you have to cut expenses.
http://online.wsj.com/article/SB10001424052702304410504575560552064806106.html
There is merit to that idea. But what about expenses that just evaporate? Going to restaurants and ordering food? Clubbing and drinking? Buying decorative merchandise (to give a fictional example, I find myself appalled by how few books and how many incredibly expensive DC and Star Trek paraphernalia there are at Sheldon’s house… though I suppose there is a reselling network on eBay and among collectors)? Taking immature-hedonist holidays where nothing is learned and no value is added to the self? Luxury food of little added nutritional value? Taxi fares?
Taxi fares can be incredibly efficient if they avoid the cost of car ownership. They also save time in locations where parking spaces are scarce and taxis are plentiful.
Of course there are also times and places where a personal auto, a rental car, or public transit may be the more rational choice. I’ve used all of the above at different times and places. But I certainly don’t place taxis in the same class as Star Trek paraphernalia and fancy restaurant meals.