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For the most part savings from labor should reduce prices and in the aggregate, "all of us" do share in the benefit. Now obviously there is no guarantee of that
by jacobwcarlson 10y ago
For the most part savings from labor should reduce prices and in the aggregate, "all of us" do share in the benefit. Now obviously there is no guarantee of that, but competition will likely result in a good portion of savings passed to the customer (e.g. if FedEx drops prices UPS will have to do so as well).
- untog 10y agoI think that's a very positive view of our possible near-future. What if Fedex doesn't drop its prices, and UPS doesn't either? They profit, we continue to pay. You see this today with airlines whose ticket prices stubbornly refuse to drop despite oil prices plunging. Competitors coordinating to preserve their profit is a very real thing.
- maverick_iceman 10y agoThis sort of cartelization would most likely be illegal under antitrust laws.
- untog 10y agoIf it can be proven, yes.
- pythonaut_16 10y agoI think there's a solid chance that Amazon will help drive down delivery prices, at least on the consumer end. If they can use automated deliveries to lower their UPS/FedEx/USPS costs, and to help them beat Brick and Mortar prices, you can bet that they'll take full advantage of it. Retail stores to would likely deliver some of the savings to customers because they have to compete with Amazon and other online retailers.