so they sell for less. When the price difference is small or when it costs more to fix an item than to replace it, consumers naturally decide to pick up a new one. Second, increased wealth. People have more money than they did in the past, and because of lower prices, they can afford more things. A hundred year ago, most people had one or two sets of clothes. Those clothes were valuable and expensive and formed a significant part of their budget. Now, you can get a nice sweater for a few dollars. It isn’t expensive at all. When that sweater gets a hole in it, you toss it and buy a new one because you can afford to.