ELI5: Explain Like I'm 5

The True Cost

Have you ever gone to the store with your parents and asked them to buy you a toy or candy? They say no because it costs too much. But did you know that the price tag on that toy or candy is not the only cost? There are other costs that are involved in making that toy or candy that we don't always think about. These are called the true costs.

Let's say you wanted a chocolate bar. The price tag on the chocolate bar might say it costs $1. But that price doesn't include all the other costs that come with making that chocolate bar. For example, the company that makes the chocolate bar needs to pay for things like:

- the ingredients (like cocoa and sugar)
- the packaging (like the wrapper)
- the machinery to make the chocolate bar

Those costs are all included in the price of the chocolate bar, but there are other costs that aren't included. For example, the cocoa used to make the chocolate bar might have been grown in a place where people are paid very little money to work on the cocoa farms. This is called unfair labor practices. The cost of paying people fair wages is not included in the price of the chocolate bar.

Also, making the chocolate bar might create pollution because of the factories used to make it. The cost of cleaning up that pollution is not included in the price of the chocolate bar either.

So, when we say "true cost," we mean all of the costs involved in making something, including things like:

- the wages paid to workers
- the cost of protecting the environment
- the cost of using natural resources like water and land

The true cost of something is important to think about because it helps us understand how our choices can impact the world. By buying products that take into account the true cost, we can help reduce harm to people and the environment.