3 ms·

And gain for the people paying these now-low prices?

• forgetsusername 10y ago
  >And gain for the people paying these now-low prices? Indeed, the OP is committing the broken window fallacy, seeing only company profits, not savings on behalf of the consumer. A move from one region to another is zero-sum? It might be, but that depends on many factors. Does the person move closer to work? That's fewer miles driven, one less car on the road, less pollution, more happiness, higher productivity. Is one local government more efficiently run than another? That's better use of tax dollars. And on and on. Competition drives these factors.
  • smileysteve 10y ago
    > Does the person move closer to work? > Is one local government more efficiently run than another? These two are features, not pricing.
• smileysteve 10y ago
  No, because when you compete on only prices there is no brand loyalty, no customer relationship, and no r&d spent on feature development. For a community; businesses might move for tax breaks, which benefits them greatly, but there might be more traffic / no high quality living that increases commutes. The employees might have to pay all relocation costs, and then the business that has no loyalty moves when the next tax break becomes available.