It's the age old paradigm of buying a pair of shoes/boots, the poor man keeps buying $20 shoes/boots that wear out in a year or two. The wealthy man looks perplexed and states, "this is why they are poor, they don't understand investing in a quality pair of shoes/boots... For a measly $100 they could buy a pair of shoes/boots that would last them 10+ years". But what is always overlooked, is that the poor man doesn't have the flexibility of spending to afford to invest better quality purchases, because the money needs to be applied to other problems in their lives.
I would argue that this is one contributing factor, outside of companies just chasing the lowest quality/cost, that contributes to crappier stuff.
You are overlooking debt / credit.
Other people having more money does not result in higher prices for the rest, i.e. it does not cause inflation.
For example, when I was a boy steak was a rare luxury. Today, a steak dinner costs less than a TV dinner or a bag of Doritos.
1. i dont want to worry about them getting damaged or lost or stolen
2. my preferences will likely change in a couple years
3. i may not want the item as much as i think i do
i've owned a very expensive watch (many thousands of dollars) and i find myself almost never wearing it, both bc the style isnt exactly what im into these days, but i also worry about banging it on anything or the smallest scratches. it's nice to wear a cheaper watch (only a few hundred dollars in value) and just sort of not care about it.
i've had my handful of "buy it for life" purchases and i'm struggling to think of literally any item like that i've purchased that i still use
4. the quality gap has closed considerably
e.g., the function and durability of your $8k watch and a $300 watch are effectively imperceptible
The gap is closing from both ends (cheap manufacturing, access to tech, etc.)