Every year, the King’s Day free market generates sales of several hundreds of millions of euros for sellers of old items. However, due to the corona crisis, the free market will not continue and the attic rooms will remain uncluttered for a bit longer. Not going through the free market will therefore cost the Dutch economy millions, right?
It is one of the permanent ingredients of a successful King’s Day: strolling through the free market and finding something you just want for a habit. The Dutch like to do this: ING wrote in 2018 that free market sellers expected a turnover of 305 million euros that year.
But is the purchase of a new old bicycle, a second-hand book or a perfectly fitting denim jacket also good for the economy? Not really, concludes ING economist Marten van Garderen. “Actually, it is only good for economic growth if you buy something for which something new has to be made,” explains Van Garderen.
The economic contribution of buying second- or sometimes third-hand items for a few cents is therefore minimal. The economic effect comes from the little consumption it provokes. “Imagine, I give you 100 euros for a bicycle that is otherwise dusting, with that 100 euros you can buy things again”, says the ING economist.
However, only part of this is being reissued: the 2018 ING survey shows that 35 percent of the sellers expect to spend the earned amount again. 17 percent expected to spend only part.
The economic effects are therefore not central to the King’s Day free market. “It mainly results in a tidy attic and you make someone happy with new things,” concludes Van Garderen.
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