> I dont understand how we get to a place where resources are allocated to build things that people dont actually need?

Resources are allocated to build things that can be sold to people.

In an ideal world, that's the very things they need.

But we don't live in an ideal world, need can be manufactured, and that's precisely what the entire industry of marketing is all about.

Then there's the industrial argument to consider. You build a factory to satisfy a need. After the need is satisfied for everyone, you still have a factory that's tooled in specific ways to produce specific products... and if you can make minimal changes and re-sell the same product with a new coat of paint, you make more money. Retooling is expensive.