"false economy" is a term used to describe a cheap good that will not
perform as required. The error lies in not specifying the exact
perfomance required. Professionals determine exact performance
specifications and make sure the item just meets those specs and no
more. To go beyond the requirements is a waste of scarce and limited
resources. For example, there is no need to pay for sideband if it is
not required. Similarly, shoddy parts and workmanship would cause an
item to fail before its specified service life of, say, 20 years.
The phrase, "use the cheapest thing that will do the job" implies
that one has given much thought as to exactly what the job is. Look
around at all the tall buildings in town. Architects and structural
engineers have designed them to be just strong enough to meet
specifications. If they overdesigned them, they would be replaced by
engineers who came in with a cheaper bid that still met specifications.
With reference to short-wave listening, a newcomer who just wanted
to listen to the BBC, RCI, and The Power Hour would be quite happy with
a Grundig S350 or even a Grundig Yacht Boy 206 for $25 from ebay. At
least he has some evidence that the models on my list are not prone to
break down. I am sure that some of the new Chinese radios represent
good value but I have not had any first-hand experience with them and
they have not been on the market long enough to determine their service
life.
If people used "the cheapest thing that will do the job" principle
in their own lives, they might find that, for example, a Hummer goes
way beyond their needs and the resources freed up could be better used
in topping up a retirement fund or paying off debt. But that takes me
off topic.