A new TikTok trend called “underconsumption core” is gaining traction online. This trend champions minimalism and frugality, and encourages people to maximize the utility of their purchases and buy only what they truly need, challenging the culture of consumerism.

Instead of showcasing large hauls of clothing, makeup or over-flowing fridge shelves, users are posting videos showing thrift store purchases, modest wardrobes and practical, well-used everyday items.

The rise of this trend can be linked to several challenges facing young people today, including increasing economic pressures, environmental concerns and social pressures, all of which are particularly affecting Gen Z and younger Millennials. If you’re also feeling financially squeezed, this trend might resonate with you.

Similar to the deinfluencing trend, underconsumption also appears to be a reaction to overconsumption—especially the way influencers have normalized it by posting haul videos. By promoting underconsumption, online users are rejecting and pushing back against this aspect of “influencer culture.”

Born of necessity

Young people are likely engaging with it as a way to adapt to increasing financial pressures.

For instance, the average federal student loan debt balance in the United States is US$37,574 per borrower, according to the Education Data Initiative. Student debt is a significant financial burden that often forces young adults to prioritize debt repayment over discretionary spending.

Inflation is also continuing to erode Gen Z’s purchasing power. While there are signs of economic relief, such as interest rate cuts in Canada, the cumulative effects of high prices continue to strain young peoples’ budgets.

Underconsumption core represents a growing awareness and adaptation to these economic realities, but it’s not the only reason. Another driver of the underconsumption trend appears to be environmental consciousness.

Environmental concerns

Mass consumerism has created significant environmental problems, including the generation of vast amounts of waste. In Chile’s Atacama Desert, an estimated 11,000 to 59,000 tons of used clothing is sitting in a landfill. This is just one example of how overconsumption is polluting the environment.

A report from ThredUp, an online vintage-resale platform, found that 65 percent of Gen Z respondents wanted to shop more sustainably. However, one-third felt “addicted to fast fashion,” and 72 percent said they shopped for fast fashion in 2022. Similarly, researchers from Sheffield Hallam University found 90 percent of university students bought fast fashion in 2022.

Despite this, many of these same consumers are concerned with sustainability and are actively seeking ways to be more responsible. Our recent study found a consistent shift in consumer attitudes towards sustainability practices, especially in fashion. This is particularly the case with Gen Z, who rely heavily on social media for shopping inspiration.

As younger consumers become more aware of the environmental impact of their purchasing decisions, they are increasingly drawn to sustainable fashion content.

This shift in consumer mentality aligns with the broader cultural phenomenon known as the “Marie Kondo effect,” named after the Japanese organizing consultant. She is an advocate for only keeping things that bring one value and joy. Kondo’s influence has sparked a growing interest in intentional consumption.

However, it is important to note that, in some instances, sustainable consumption behaviors may be driven more by selfish motives than purely altruistic ones. By choosing to consume less or more mindfully, younger individuals can project an image of thoughtfulness, responsibility and uniqueness—qualities that are increasingly valued in the social media landscape.

How to be a healthier consumer

If you are interested in practicing healthier consumption habits, it’s important to understand how you can sustain this lifestyle long-term. There are two main strategies you can use to do this.

First, find a way to strike a balance between frugality and quality of life to maintain your overall well-being. Research suggests a mix of experiential spending (such as travel) and material purchases (such as a new smartphone) can lead to greater happiness and satisfaction.

Don’t completely abandon material purchases in favor of experiences. Instead, a thoughtful approach that includes both types of spending, albeit at a reduced overall level, will likely lead to better outcomes. This approach focuses more on mindful consumption, rather than blanket restrictions.

Second, try to focus on improving your financial literacy. Start by creating a budget that ensures basic needs and baseline expenses are met. Seek to understand the types of financial products and solutions that fit your particular needs. This will help you avoid overconsumption and make choices that support long-term financial stability.

Those with higher financial literacy are better equipped to select products that align with their needs and values, rather than falling prey to aggressive marketing or unnecessary features that can lead to overconsumption. For instance, young consumers are likely to spend more on credit cards that offer attractive rewards leading to overconsumption and strained budgets over the long-term.

While the underconsumption trend offers potential benefits, it’s important to approach it in a balanced way. While combining healthy spending habits with financial literacy is key, it shouldn’t be about deprivation. Instead, you should make informed choices that align with your personal values and goals. Done right, underconsumption can lead to financial stability and a more purposeful lifestyle.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Boeing named former aerospace veteran Robert “Kelly” Ortberg its next CEO Wednesday, as the aviation giant reported a hefty loss on continued operational problems.

Ortberg, 64, helped lead Rockwell Collins and integrate it into United Technology prior to his retirement from RTX in 2021. Ortberg is an engineer and is an outsider to Boeing, fulfilling key CEO requirements in the eyes of some aviation insiders.

His appointment, which will take effect August 8, comes as Boeing attempts to rebound from a series of safety and quality control problems that have sharpened scrutiny on the company.

Those difficulties were immediately visible in Boeing’s second-quarter results released Wednesday, a loss of $1.4 billion, compared with a loss of $149 million in the year-ago period.

Revenues fell 14.6 percent to $16.9 billion.

The quarterly results reflected a continued drag from Boeing’s commercial division, where it has lowered production while upgrading safety and quality control practices under the close watch of regulators.

The latest results also showed significant weakness in its defense business due to a number of fixed price contracts where it has experienced deep losses due to supply chain problems, as well as higher engineering costs and technical issues.

Boeing’s press release listed four defense contracts behind an operating loss of $913 million in the quarter.

Leadership shakeup

Boeing has been in the hot seat since a January incident in which a 737 MAX operated by Alaska Airlines made an emergency landing after a fuselage panel blew out mid-flight.

Outgoing leader Dave Calhoun ascended to CEO in January 2020 unexpectedly following the ouster of predecessor Dennis Muilenburg amid fallout from the MAX crashes.

Calhoun appeared poised to stay CEO to 2028 until the January 2024 Alaska Airlines incident sparked outrage on Capitol Hill and concern among Boeing’s airline customers, whose reported efforts to engage the board preceded Calhoun’s announcement on March 25 that he would step down by the end of 2024.

Some names mentioned as CEO candidates such as GE Aerospace CEO Larry Culp and Spirit AeroSystems CEO Patrick Shanahan took themselves out of consideration.

At Boeing’s annual meeting in May, Chairman Steve Mollenkopf vowed to find the “right” person to “regain the trust lost in recent times to get back on track.”

Aviation experts have said the next Boeing CEO should ideally have an aerospace background, experience managing big manufacturing projects, strategic smarts and a hands-on approach to safety.

Communications skills are also critical, in part to be able to navigate congressional hearings and other politically-oriented venues.

In Wednesday’s press release, Mollenkopf described Ortberg as “an experienced leader who is deeply respected in the aerospace industry,” according to a message to employees.

Ortberg said “I’m extremely honored and humbled to join this iconic company,” according to the press release. “There is much work to be done, and I’m looking forward to getting started.”

Representative Rick Larsen, the senior Democrat on a key House Transportation Committee, said on X that was “encouraged” by the appointment.

“Mr. Ortberg is a mechanical engineer,” Larsen said. “I hope that means he will ensure that his top message for everyone is building the best airplane means building the safest airplane in the world.”

Analysts at JPMorgan Chase praised the appointment, while noting the CEO post “remains a very challenging job,” according to a note.

“We believe he is highly respected in the industry, he has important operational and engineering experience, and we think he has the potential to do some of the things Boeing needs most, including restoring relationships with customers, suppliers, regulators, and legislators,” said the JPMorgan note.

Third Bridge analyst Peter McNally said Ortberg’s aviation experience will help at Boeing, but said “he and the organization face a long road ahead.”

Ortberg is set to take office on August 8, just after a two-day hearing organized by the National Transportation Safety Board in Washington on the Alaska Airlines incident.

The Alaska Airlines incident raised fresh scrutiny on Boeing and the MAX following two fatal crashes in 2018 and 2019 that led to a lengthy grounding of the plane.

Boeing agreed to plead guilty to a fraud charge in connection with the MAX certification as part of a plea deal with the Department of Justice, US officials announced July 24.

Shares of Boeing rose 2.0 percent in morning trading.

© 2024 AFP