I'm missing something here... why does a decorated Christmas tree cost more than $0 (the price of an artificial tree and ornaments handed down from parents)?
Uhh... that's like saying why does a car cost more than $0 (the price of a car handed down from parents)
The differences are that:- artificial trees don't really have chance to wear out since they're used only seasonally
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- by the time kids move out and want a tree the parents tend to be tired of dealing with it, so they don't have to buy a new one to replace it
- With ~2 children per family (on average) in the US, if one of those children inherits their parents' tree and the other inherits a tree from their in-laws, then there is no net increase in the number of trees needed from one generation to the next (again, on average).
Not to nitpick, but artificial trees absolutely do wear out. Obviously not nearly as quickly as real trees, but too quickly to be passed between generations in any significant way.
My parents have had an artificial tree for the past 12 years (did buy it used, so not sure how old it actually is but less than 20 yrs.) and the needles are starting to fall out. More importantly, many of the branches are getting too weak to hold some of the heavier ornaments.
That still doesn't take into account those crappy pre-lit trees that seem to be taking over the world, which certainly won't last more than a few years due to more moving parts, lost/dead bulbs, and the general cheapness of many of the designs. A good quality artificial tree could probably last as many as 40 years but then the absolute most you'll get out of it is 2 generations, and that's assuming:
1. Empty nesters don't want to have a tree
2. Kids don't want a tree until they themselves are married
3. Kids and parents live in similar size/arranged dwellings
None of which are true with the people I know.