Destruction of goods can't be stooped due the pace of inflow of inventory. This is like a conveyor belt jamming, where the downstream belts are draining slower than upstream ones.
But manufacturing goods, shipping them halfway across the planet, then throwing them away is tremendously wasteful and is a gross misuse of limited resources.
On top of that I think that society, as a general principle, should demand more product transparency in the form of regulation. What are the actual environmental costs of a certain product? Where are the components coming from? What kind of production process did that industry adopt? All this should be clear in the description of a product.
The way things are right now the incentives are geared towards trying to industrialize and sell the worst kind of product for the highest price and offload to society as an externality the environmental and social costs of doing so.
The 2024 rules are from just before the European Elections, probably in the hope that the unusually red/green European Parliament 2019-2024 (the 9th European Parliament) could get more votes. Von der Leyen also basically had to sell her soul to get enough votes from the red/green parties to get elected, which had a large impact on the way her first Commission operated.
Unfortunately (for them), the 10th European Parliament (the current one) is a lot less red/green. Most member states have also realized that we have a lot of "environmental" regulation that is expensive without helping the environment much (and some cases harming it). We are already in the process of rolling some of it back. Maybe this particular regulation will also be rolled back during the 10th European Parliament.
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The linked page has this text:
"Every year in Europe, an estimated 4-9% of unsold textiles are destroyed before ever being worn. This waste generates around 5.6 million tons of CO2 emissions – almost equal to Sweden’s total net emissions in 2021."
Really? The waste in terms of destroyed unsold textiles generates the same CO₂ emissions as Sweden in 2021? Sweden has a population of around 10 million = a bit more than 2% of the EU (I'm still mentally using the pre-Brexit half a billion number). It has lower CO₂ emissions per capita than most member states due to it having hydropower and nuclear power, but still... call it a round 1% of the total EU CO₂ emissions in round Fermi numbers.
The remaining 91-96% would presumably also generate CO₂ emissions -- 11-20 times as much, in other words roughly 11-20% of the EU CO₂ emissions. Concrete, bricks, heating, agriculture, chemical plants, commuting, etc. all have to share the remaining 80-91%.
I don't think that is very believable.
(A lot of the strangeness comes from using "total net emissions" which allows Sweden's number to go from around 30 million tons to apparently 6-7 million tons. Using the doctored number here makes the textile destruction appear much more wasteful than it really is, especially since the burning of said textiles can easily produce electricity and district heating.)
Very tongue in cheek: In the latest fully analyzed year (2024) Sweden was CO2 net negative. Cause: Increased growth in forest mass after a few years of increased precipitation and reduced damage from spruce bark beetles.
(https://lantbruksnytt.se/den-svenska-skogen-binder-mer-koldi...)
It may also become less costly to take products with flaws and fix them up: Right now, it's not profitable; but if one can't just chuck them away, then the cost-benefit analysis changes.
Less throw-away fashion hopefully.
So a noble idea for sure, but it will fail because it goes against the core of the society we live in today. And the EU is primarily an economic union.
Can anyone clear why would it not be a good idea? My country can measured an increase of micro plastic from cloth fibers. We all know how pollution is getting worse. Here, we don't have winter, fall or anything anymore. The acid rain from the 90s destroyed most of green on adjacent cities and when it is hot it gets in unbearably hot and when it is cold it gets stupidly cold.
Food production decreased by 20% this year. I kid you not. Prices went up and most of people can't afford cow's meat anymore. Most people are living on pasta and eggs, eventually they eat pig and chicken but that's getting rare.
For example, if a custom returns a product that was opened but they claim was never used (worn in this case) you can’t sell it to someone else as a new item. With physical products these go through refurbishing channels if there are enough units to warrant it.
What if a batch of products is determined to have some QA problems? You can’t sell it as new, so it has to go somewhere. One challenge we discovered the hard way is that there are a lot of companies who will claim to recycle your products or donate them to good causes in other countries, but actually they’ll just end up on eBay or even in some cases being injected back in to retail channels through some process we could never figure out. At least with hardware products we could track serial numbers to discover when this was happening.
It gets weirder when you have a warranty policy. You start getting warranty requests for serial numbers that were marked as destroyed or that never made it to the retail system. Returned serial numbers are somehow re-appearing as units sold as new. This is less of a problem now that Amazon has mechanisms to avoid inventory co-mingling (if you use them) but for a while we found ourselves honoring warranty claims for items that, ironically enough, had already been warrantied once and then “recycled” by our recycling service.
So whenever I see “unsold” I think the situation is probably more complicated than this overview suggests. It’s generally a good thing to avoid destroying perfectly good inventory for no good reason, but inventory that gets disposed isn’t always perfectly good either. I assume companies will be doing something obvious to mark the units as not for normal sale like punching holes in tags or marking them somewhere]
As if companies are just out here wantonly destroying otherwise valuable goods that could have been easily sold at a profit instead.
I guarantee this problem is far more complex and troublesome than the bureaucrats would ever understand, much less believe, yet they have no problem piling on yet another needless regulatory burden.
"Instead of discarding stock, companies are encouraged to manage their stock more effectively, handle returns, and explore alternatives such as resale, remanufacturing, donations, or reuse."
https://www.ifc.org/en/insights-reports/2023/strengthening-s...
Now of course this might be a totally acceptable price to pay, I'm not necessarily arguing against it. It will just be conveniently omitted from public communications on the topic by the EU. For regulators, there never are tradeoffs, after all.
That is a crazy amount.
I live in America and I would like it to continue to be the leading economic zone.
The more Europe (and others) lag behind, the better my life will be :).
If you buy from (It's mostly menswear brands here, sorry ladies) companies who specialize in actually quality vs "fake exclusivity", trends, or hype, than you'll never have to worry about this.
I'm specifically talking about selvedge denim brands (i.e. brave star, naked and famous, the osaka 5 brands, etc) high end leather makers (i.e. Horween, Shinki, and the people who make stuff with them like Schott), goodyear welted boots/shoes (i.e. Whites, Nicks, Grant Stone, Meermin, etc), high end made in the USA brands (i.e. Gustin) - this will literally never happen. It's far too damaging for them to destroy any kinds of their stock given it's natural exclusivity and the fact that they always sell basically everything they've got.
The fact that they had to pass this ban at all is a signal that normies are bad at buying clothes, and they should feel really bad about it too.
If you had bothered to read TFA, you'd have understood that the rules only apply to products that have fully passed QA, were being kept as stock but ended up not selling. They don't apply to experimental batches, to defective or damaged items, etc...
My initial thought was "reusing an item is even better than recycling" but then realized that a warrantied item is quite likely to have flaws and get warrantied again very soon.
I have recently been trolling eBay for used computing equipment rather than buying new, after it was suggested I sell my old hardware that I don't think anyone would want. And man has that been a great experience, it's way more fun than browsing Newegg or doing pc part picking from new catalogs. I need neither the compute hardware nor the cost savings but it's a fun activity on its own, not unlike so many computer games where you do deck optimization or similar.
Isn't this why Ross exists? It's where I first heard the phrase "slightly irregular".
Businesses importing from non-EU countries have to shoulder the responsibility in stead of the manufacturer.
Supply control usually benefits the producers, despite what it may seem (destroying items). Increasing the supply lowers the relative pricing power of the vendors, and reduces the price an average consumer pays for the same item, even if the retail price for the item technically increases.
I'd say it is good in the long run. If people spent less on clothes, they'd have more to spend on other goods and services or invest in productive endeavors.
https://www.eea.europa.eu/en/analysis/publications/the-destr...
Oh, it's really percentage of all produced. Weird that they worded it in a way that makes their argument weaker.
>Based on available studies, an estimated 4-9% of all textile products put on the market in Europe are destroyed before use, amounting to between 264,000 and 594,000 tonnes of textiles destroyed each year.
Is a temporary advantage worth destroying the planet forever?
Except that’s not why the majority of clothes are thrown away. The real reason they are thrown away is because of size changes and fashionability.
HN probably has an over representation of the types of people who wear out clothes and even here it’s likely a minority that actually do wear out clothes.
You should check out "Ascension" (it is on Paramount unfortunately). It gives a pretty close up look at China and factory culture and how their entire country is mobilized to push maximum consumption. The corporation's don't view Americans high per-capita consumption as a problem but instead wonder how to drive the rest of the world to consume the same absurd amount. It gives you a sort of fly on the wall view of the whole thing and it really makes you question what kind of psychotic road we are barreling down.
I agree with you about food though. I care about food and healthcare, very occasionally transportation. Can we focus on those instead of all the bullshit "amenities" corporations are churning out, are we really gonna decimate the planet for clothes, cosmetics and plastic conveniences?
It's like this in a lot of places now. We're seeing climate change in the interval of a generation. It's absolutely scary.
> The acid rain from the 90s destroyed most of green on adjacent cities and when it is hot it gets in unbearably hot and when it is cold it gets stupidly cold.
What country do you live in if you don't mind telling us?
The only people who think that destroying useful items is a good idea are those who would stand to lose money from it; either by having to pay a tiny fraction of their massive annual revenue for responsible recycling services, or by having their brand's reputation diluted by having their wares sold or (even worse) donated to the needy.
A robust liquidation market does a lot to prevent waste, and it reduces the cost of living for those who participate, so finding ways to allow products to be truly sold as-is is vital, otherwise the next most logical option is to put those items in a landfill.
It's also important that there's no legislative hurdles to seelling items as-is, or there may be no legal way to sell a salvage products without completely overhauling them, which is usually not cost effective.
Isn't that good though? Unless the defects make the product somehow dangerous, this means that it found its way to users who are OK with it, thus avoiding waste. And someone even made money in the process.
(all assuming the product is not sold as "new")
It's good exactly because of this. Every company is pushing us to consume more, and Wall Street is at the top of this, growth at all costs (including human lives, mental health, just anything)
Only way to save Earth is to stop the Wall Street greed machine.
We should be making shoes which lasts 4 years, clothes which last at least 2 years with no "fashion" industry pushing us to change it every 2 days.
You're seeing the first detectable solar maximum in 40 years.
If you were born before the late 70s, you will not have experienced climate like this, or solar activity like this. The past few 11-year sunspot cycles have been an absolute bust.
This is what weather patterns were like in the early 80s.
And that is a very big assumption to make. Recycling is ripe with fraud simply because how much money is in the system.
The only way you can really be sure that "recycling" companies don't end up screwing you over is to do rough material separation on your own and dispose of the different material streams (paper packaging, manuals, plastics, PCBs) by different companies.
I think some brands destroy the items to create an artificial scarcity that keeps their stuff 'exclusive'.
Isn't this TKMaxx's entire business model?
In TFA it's estimated that between 4% and 9% of clothing put on the EU market is destroyed before being worn. An admittedly high uncertainty, but even 4% of all clothing sold in the EU is still a heck of a lot of clothes.
They're not destroying clothing because it's inherently unsellable, or hazardous, or damaged beyond repair. They destroy it because it's easier to dump excess stuff than it is to set up responsible channels to get rid of it.
Many "high fashion" shithouses intentionally destroy excess stock so that their precious branded status symbols can't get into the hands of the filthy proles, which would dilute their brand recognition.
These "regulatory burdens", as you call them, are the only thing holding back companies from further messing up the planet and I welcome them with open arms.
In the first dot-com era, I knew some startup people who were trying to create an online secondary market in used apparel, called Tradeweave. It flopped. You can see their web site on the Internet Archive up to 2004.[1] Then, suddenly, it's gone. There's a Stanford Business School case for this company.[2] Amusingly, the Stanford case study is dated 2000, before the collapse, and makes it sound like a success.
[1] https://web.archive.org/web/20040323045929/http://tradeweave...
[2] https://www.gsb.stanford.edu/faculty-research/case-studies/t...
- TOMS Shoes
- PlayPumps
- Textile Aid
Overall, seems reasonably sensible.
It's still ok to destroy products if (among many other reasons) "the product can reasonably be considered unacceptable for consumer use due to damage, including physical damage, deterioration or contamination, including hygiene issues, whether it is caused by consumers or occurs during the handling of the product [...] and repair and refurbishment are not technically feasible or cost-effective;" but cost-effective means "the cost of repairing or refurbishing a product not outweighing the total cost of destruction of that product and of [all] expenses of replacing that same product."
So essentially, they have to offer all the clothing for donation first, if nobody wants it, it can still be destroyed (that's one of the other exceptions).
Unfortunately another exception is if "it is technically unfeasible ... to remove ... labels, logos or recognisable product design or other characteristics that are ... protected by intellectual property rights". So a luxury brand can probably still go "well our design is protected and we don't want the poors wearing our fancy clothes".
The best fashion is timeless, and that's why heritage fashion is far superior to trends. Coincidentally, it's why the brands I listed above are exclusively heritage brands, who have basically no regards for trends.
There's a reason HN is poorly dressed. I'd rather take the "only dresses with startup T-shirt" guy over the "I've gotta have the Sydney Sweeney Jeans" person, and especially over the sneakerhead crowd which now thinks Hoka and NB is superior to Nike.
I was curious why I no longer was able to wear pants I wore in my 20s. I could not get them over my hips. It wasn't because I was getting fatter, my weight is about the same.
I was also intrigued by young men looking slim in the hips, and older men not.
So I looked it up.
Turns out that your hips grow wider with age. I'd never heard of this before! Though I did know one's ears got bigger.
Too bad my shoulders never get wider, and my height shrinks :-/
My feet have gotten considerably wider with age, too.
I have lived in the same place my whole life. The weather and seasons are effectively the same, from the day i was born until now. Both observationally and by way of looking at average daily temperatures.
With textiles this is usually a hole punch or something with the tag. With hardware we had the serial number recorded.
But consumers don’t care. If they buy something from a vendor they think is selling them something as new and the vendor tells them to go the manufacturer, the customer doesn’t care that you marked it as not eligible for warranty. They just want that coverage
We even had customers write ragebait Reddit posts claiming we were unfairly denying warranties, people sending stories to popular newsletters and journalists, and other attempts to make us look bad for not honoring warranties on products they bought through gray market channels.
It's good for shoppers (if they're informed), the recycler, and the environment. It's bad for the original maker.
Imagine a factory mix-up means some ExampleCo jeans are made of much lower quality materials than normal. They'll wear out much faster. But ExampleCo's quality control does its job, notices the inferior quality before they hit store shelves, and sends them for recycling.
If the recycler sells them on ebay as 'never worn ExampleCo jeans' then:
1. Some people who would have paid ExampleCo for jeans instead pay the recycler - leading to lost sales.
2. Some of the customers complain online about the bad quality, damaging ExampleCo's reputation
3. Some of the customers ask for replacements, which are provided at ExampleCo's expense.
People buying it may or may not be ok with the defect.
Think bad welds, usually they're fine for a while and then they're very much not.
It is not OK for anyone to litter, also not companies.
One can speculate that this is an easy way to force the companies to pay for their externalities - given that production in third countries are much harder to touch for the EU.
The price point is already high enough that taxing raw materials doesn’t really push the needle on price, they’ll just pass the costs on.
Utilitarian brands already don’t want to destroy clothing because their customers are price sensitive.
This forces the brands to do something with excess clothing. I suspect they’ll do whatever is the closest to destroying the clothing, like recycling them into rags or shredding them for dog bed filler or something. Maybe even just recycling them back to raw fibers.
Instead of discarding stock, companies are encouraged to manage their stock more effectively, handle returns, and explore alternatives such as resale, remanufacturing, donations, or reuse.
I guess remanufacturing/reuse might be the intended solution if it's absolutely not to be worn.
from TFA
> companies are encouraged to manage their stock more effectively, handle returns, and explore alternatives such as resale, remanufacturing, donations, or reuse.
Worst case would be recycling the fibers, presumably.
In theory companies would eventually be forced to produce less items nobody wants, although this is just an additional incentive in that natural process.
When I used to work for the biggest ecommerce in europe, we had various stages for clothes. The last stage was selling the clothes by kilo to companies.
So yeah, considering how necessary fabric is to human life, that isn't a terribly surprising figure.
Citation for the 100-ish hours: https://acoup.blog/2025/09/26/collections-life-work-death-an...
So carbon emissions are bad, but then we should price carbon and not micromanage clothing inventory.
This is the actual quote on the page you cite:
"Today, the combined textile and apparel sectors contribute as much as 8–10% of global greenhouse gas emissions."
Notice the unusual way they spell "fashion"...
I got the same feeling when they mandated USB-C on Apple devices. If the problem of waste were tackled categorically, then the state wouldn’t need to get involved in matters it has no business getting involved in.
It has to stop at some point. Eventually, the regulations will become so complicated, unknowable, and unenforceable, that they’ll have no choice but to say “this is enough” and start tackling the root of the problem instead.
Second, in the short term this is going to lower profits for some companies.
Third, hopefully in the long run it will lead to less waste.
Is it perfect? Of course not, no real legislation ever is. If there's a better way to get started on reducing waste I'd like to hear it, though.
5 months is a pretty short timeline for a large company to change literally its entire business to handle one class of products differently. This affects returns, sales, shipping, contracts with disposal companies, etc.
The weirder part is that they're granting medium and small size companies 4 more years to figure it out. It will take any company a long time to deal with this. So why shaft the large companies? Spite? The difficulty this imposes on them, and any fines from their inability to comply, will be passed down to the consumer.
If the regulation specifically prohibits burning, it makes sense, as a measure to limit unproductive CO₂ emissions.
Reality is, there is just 10x more thrown out clothes in the west that any third world country on earth could need, same for shelters.
Associations distributing clothes to developing countries / shelters are filtering tightly what they accept.
In short, the vast majority of thrown out clothes in the west are just crapwear that not even the third world want. There are entire pipelines of filtering and sorting to only keep and distribute the good quality clothes.
I think the reason that brands don’t want to donate is because they don’t want their brands to be associated with poor people.
Edit: "To prevent unintended negative consequences for circular business models that involve the sale of products after their preparation for reuse, it should be possible to destroy unsold consumer products that were made available on the market following operations carried out by waste treatment operators in accordance with Directive 2008/98/EC of the European Parliament and of the Council3. In accordance with that Directive, for waste to cease to be waste, a market or demand must exist for the recovered product. In the absence of such a market, it should therefore be possible to destroy the product." This is a rather interesting paragraph which seems to imply you can destroy clothes if truly nobody wants it.
https://www.udet.org/post/the-hidden-cost-of-generosity-how-...
Guess what, the free market doesn't give a shit as long as the executives make their millions.
https://www.udet.org/post/the-hidden-cost-of-generosity-how-...
They'll find another way to destroy them.
2018 article reports that Burberry destroyed £28 millions worth of clothes to keep their brand "exclusive": https://www.bbc.com/news/business-44885983
No I am not joking, some german company hid an airtag in a old computer that went to recycling. It ended up somewhere in Thailand, being not very environmentally friendly taken care of.
A bit like feeding everyone vs. having an obesity crisis.
"A lot" doesn't mean all, and "my home isn't an example!" doesn't disprove the claim.
Maybe this is the problem. Retailers should cover the statutory warranty on any product they sell.
These days this is often the only recourse you have, because going the legal route you get stonewalled unless you are willing to spend serious money on pursuing a case. And it'll cost you gobs of time. An example is my mother buying new pants for 220 bucks from a reputable seller, the stitching starts to disintegrate after 7 months, and both the retailer and the manufacturer tell my mother to go pound sand.
So please do not portray customers trying to get their due as "ragebaiters".
Then this will be the pressure that is needed for the company's quality assurance to be improved.
I suspect this will need to be a cultural change. If ExampleCo does it but not RandomCo, of course your reputation will suffer. But if the law is for all of EU, it gives everyone an equal footing.
I can only assume it is worth it for the seller to sell untested goods as new, a good number must work long enough for the buyer to be happy.
There is no law that states specifically Apple must specifically use USB-C. IIUC, the law is that all brands/manufacturers should use the same type of charger, an industry standard. That was apparently USB-C. Apple was the odd one out and had to change. If something better comes along, the industry as a whole can upgrade.
https://www.eea.europa.eu/en/analysis/publications/the-destr... says "Based on available studies, an estimated 4-9% of all textile products put on the market in Europe are destroyed before use, amounting to between 264,000 and 594,000 tonnes of textiles destroyed each year."
https://www.dailymail.co.uk/news/article-7070709/Plastic-pac...
The European Commission today (Feb 9) adopted new measures under the Ecodesign for Sustainable Products Regulation (ESPR) to prevent the destruction of unsold apparel, clothing, accessories and footwear.
The rules will help cut waste, reduce environmental damage and create a level playing field for companies embracing sustainable business models, allowing them to reap the benefits of a more circular economy.
Every year in Europe, an estimated 4-9% of unsold textiles are destroyed before ever being worn. This waste generates around 5.6 million tons of CO2 emissions – almost equal to Sweden’s total net emissions in 2021.
To help reduce this wasteful practice, the ESPR requires companies to disclose information on the unsold consumer products they discard as waste. It also introduces a ban on the destruction of unsold apparel, clothing accessories and footwear.
The Delegated and Implementing Acts adopted today will support businesses in complying with these requirements by:
Instead of discarding stock, companies are encouraged to manage their stock more effectively, handle returns, and explore alternatives such as resale, remanufacturing, donations, or reuse.
The ban on destruction of unsold apparel, clothing accessories and footwear and the derogations will apply to large companies from 19 July 2026. Medium-sized companies are expected to follow in 2030. The rules on disclosure under the ESPR already apply to large companies and will also apply to medium-sized companies in 2030.
"The textile sector is leading the way in the transition to sustainability, but there are still challenges. The numbers on waste show the need to act. With these new measures, the textile sector will be empowered to move towards sustainable and circular practices, and we can boost our competitiveness and reduce our dependencies."
Jessika Roswall, Commissioner for Environment, Water Resilience and a Competitive Circular Economy
The destruction of unsold goods is a wasteful practice. In France alone, around €630 million worth of unsold products are destroyed each year. Online shopping also fuels the issue: in Germany, nearly 20 million returned items are discarded annually.
Textiles are a major part of the problem, and a key focus for action. To cut waste and reduce the sector’s environmental footprint, the European Commission is promoting more sustainable production while helping European companies stay competitive.
The ESPR is central to this effort. It will make products on the EU market more durable, reusable and recyclable, while boosting efficiency and circularity.
Ecodesign for Sustainable Products Regulation | European Commission
Ecodesign for Sustainable Products Regulation | EUR-Lex
>If the recycler sells them on ebay as 'never worn ExampleCo jeans' then
the recycler will have undoubtedly violated a contract they have with ExampleCo and will lose in civil court and pay significant penalties greater than the money they made selling never worn ExampleCo jeans and also, undoubtedly, suffer from not having ExampleCo as a customer for their services in the future.
Why apparel specifically? Because apparel is specifically the consumer industry where enormous quantities of unsold product are intentionally destroyed to then be replaced in the market by newly made equivalent articles.
Why was USB-C mandated specifically on Apple devices? Well here's the thing: it wasn't. It was mandated on smartphones in general, and Apple was the only company that specifically tried to fight the regulation because apparently they're special.
To me this whole regulation sounds like a bunch of virtue-signaling politicians wanted to pat themselves on the back.
This can be profitable for the customer, if they can't just easily get rid of those 1000 they can't sell, it's presumably less profitable.
I assume it's not actually a really strong incentive in context.
You know you can sell 4000 of those products for a total of $15k.
This might become a bad deal if dealing with the 6000 extra units costs you money.
Isn't that another version of the Broken Window Fallacy? Destroying things to create jobs re-creating them is a net loss.
The link is not about the 2024 framework regulation (from just before the elections) but about some new supplementary regulation that the 2024 regulation allowed for and required -- in order to provide clarifications and fix some of the mistakes of the initial regulation.
They didn't. You can look at the Ecodesign for Sustainable Products Regulation (ESPR) yourself. It's fairly long but it should be easy to scroll until you find some of the lists.
Why assume that? Could you not imagine that legislation is often meant to signal values to voters as much or more than it is intended to solve real problems.
Business and economics don't work the way you naively assume. Businesses should have a natural incentive to provide an environment that doesn't kill workers because it's cheaper to not kill someone and not hire a replacement. This is entirely disjoint from the reality where we have laws saying things like "you must stop a machine before putting a person inside it".
Business and economies are not rational by any definition of the word. If something feels like it will be easier or more profitable, business will happily shovel children into the active machinery of a printing press until government forces them to stop.
We have something like 200 years of labor laws around this point. You should probably read some history and ask yourself why every government on the planet has been compelled to force legislation on business to protect the interests of the people.
(And many of these large shipments do not end-up as donations by the time they get to their destination, but are actually sold by weight and then resold again)
But yes - distribution/logistics of donated goods needed to those who need them should be a "solved problem", but unfortunately it is not - regulations could help. (In countries/regions where governments actually WANT to regulate and then subsequently FOLLOW the regulations rather than cancel, ignore or throw them out entirely... Pretty sure everyone knows which country I am referring too...)
Rather have all people spend all of their money to the cent to buy clothes, to pay rent and to buy water tbh
1. The elites grab the crates and hoard them, leveraging their existing power to make sure they enrich themselves and extend their power. They sell the items, but at a lower price than the Earthly-produced items, which is easy since they have 100% margin.
2. Whether or not #1 happens, it becomes impractical to make any of these goods for a living, so people stop. Eventually, the factories are dismantled or simply crumble.
Now Earth is dependent on the aliens to keep sending the crates. If the aliens ever get wiped out, or just elect a populist who doesn't like to give aid to inferior planets, then we won't have any cars, or clothes, or computers.
Because it is very visible to low information voters who are also red/green voters.
(And yeah, I get it - no one "really" wants to work on a "soul-crushing" assembly/production-line... People want to make art (or games) or write novels... (both areas of creative work which are ALSO being targeted by AI)... but people definitely want to "eat" and have shelter and our whole system is built on having to pay for those priviledges...)
Around 1800, 95% of people worked on the farm. Today it is 2%. People do different things now.
Some perspectives would say that they serve no real purpose other than performative wealth display and distribution. They appeal to everyone at fundamental psychological levels to "fit in" with a popular trend or "in group".
Their actual quality is often no better than other manufactured goods. It is their perceived quality and style that are the entire reason their brands exist.
(and... I can admit that certain "luxury brands" are definitely appealing to me personally, even if they make little "logical sense" to own - maybe not clothing so much, but... watches...)
So you have to underproduce always, and maybe not even make things that aren't a safe bet to sell out.
Is there such a thing as fast-cutlery? Or fast-furniture? Maybe fast-book or fast-vehicle? Fast-whitegood perhaps? I'm at a loss here, I've only heard of fast-fashion.