The Boots Theory
"I'm too poor to buy cheap things" is an old wisdom. It's famously illustrated in Terry Pratchett's book "Men at Arms" where the story goes like this: A poor man buys boots for $10. They're good enough to last for a season or two, but then they're worn out and start to leak. Meanwhile, a wealthy man buys a pair of $50 boots. Those will still be in good shape after 10 years. The end result is that the man who always buys those cheap boots will easily end up spending twice as much money as the wealthy man, and would still have wet feet. This is called the Sam Vimes "Boots" Theory of Socioeconomic Unfairness. Paradoxically, life is in many ways more expensive for those with lower income. Those with money can afford to buy in bulk, and so end up paying less per unit. Banking fees are lower (or free) if you have enough money, while exceeding one's balance incurs costly "insufficient funds" fees. Borrowing money is more costly i...