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And finance Allah shmoop what Our consumer nondurables and services

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a durable and something that lasts a long time You

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know like the pyramids Notre Dame Cathedral Tom Brady and

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their stuff you can buy that lasts a long time

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Like cars refrigerators backhoes of jet engines Who When Elsa

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medieval torture devices for your basement All durable Well their

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products meant toe last at least three years Will you

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buy them today And you're likely to have them for

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the foreseeable future Then you have nondurables Well these You're

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more disposable items you know like toothbrushes razors paper towels

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plastic forks tinder dates L they don't last a long

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time And they tend Teo will not be very expensive

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right Like they're kind of throw away dollars services fall

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under a similar category as nondurables like get a haircut

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And now you're good for a few months Well maybe

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if you're these guys you're good for three years or

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more But usually you'll be back for a service in

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a short period of time Well economists look at the

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numbers related to durable and non durable goods differently The

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goal of economic statistics usually is to read Well what's

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going on in the economy And generally experts feel the

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stats for durable goods say a lot more about the

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economy than those for nondurable goods Right Like you have

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to think really hard about a very expensive durable thing

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You'll keep forever figures for durable and nondurable goods Both

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get reported on a monthly basis but the stat for

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durable goods orders gets far more attention than a similar

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readings for nondurables Even in bad economic times people can

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probably still afford things like raisers and toilet paper Let's

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hope aura as Este Lauder used to say You know

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a new lipstick but they might put off buying that

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new car or refrigerator or you know new pontoon boat

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So in recessions you might see a sharp drop in

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durable goods orders while nondurable goods remain in really stable

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Orders in the nondurable category might dip a little but

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the impact won't be a sharp right Well again people

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can put off those big durable goods purchases if they're

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looking to save money and then not so hopeful right

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now But maybe we'll be in the future something like

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that But the smaller nondurable goods are more immediate kind

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of hard to get along without him for any length

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times people just buy him good times and bad Meanwhile

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the economic performance of these stats are tracked in dollars

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The prices of the average nondurable is much less than

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the average price of a durable good right like razors

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cheaper than washing machines So the falloff in the durable

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goods stats will look even more dramatic So that's how

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things roll You might lament the disposable consumerist society You

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might think that the best thing would be to go

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to a mountaintop somewhere and spend your days meditating But

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when push comes to shove and the economy is in

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crisis well people will always choose their more disposable goods

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It's a stuff that gets us through the day Thank 00:02:54.695 --> [endTime] goodness I do

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