Clothing is no better example of capitalism at work in an unregulated environment. The manufacturer must seriously over produce just to have all prospective sizes in stock at the end of the retail system.
Thus there is always end of season product that cannot be sold. At the same moment a hundred competitors fill those same outlets with fresh product. Thus the whole industry is working against a rush to market mentality and this puts massive downward pressure.
It is so chaotic and so impossible to regulate, it seems governments have actually dodged the industry. As well this process has been underway for a good two centuries and more. Today no one in the world seriously makes their own clothing. You really can chuck your entire wardrobe and do better with small change in a thrift shop of which we now see many.
The Market’s Gift: Low Clothing Prices
Clothing is a wonderfully vibrant market
DECEMBER 25, 2014 by JEFFREY A. TUCKER