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I actually think its a great mechanism for wealth redistribution. Imagine the following scenario: Both Person A and Person B want a watch and will both consum
by somethoughts 7y ago
I actually think its a great mechanism for wealth redistribution.
Imagine the following scenario:
Both Person A and Person B want a watch and will both consume one. Person A is very rich and Person B is lower or middle income. Assume Watch 1 and Watch 2 are made in the exact same factory. Watch 1 has artistic elements and is marked up 300% with 200% on making nicer packaging, manual, ad editorials, social media marketing, display case design, sales commissions with the profits left to the factory owner. Watch 2 is sold at a discount retailer. Person A buys Watch 1 and Person B buys Watch 2.
Person A has had generally the same level (maybe slightly higher) environmental impact. But in the process Person A has also enabled many knowledge/creative workers who might otherwise have been under employed to derive a source of revenue (and possibly a purpose). Basically its a pre-commissioned objet d'art that can be mass produced and can be purchased by the masses.
Where it somewhat falls apart is if the marketing is so good that Person B buys Watch 1 and goes into debt in the process.
- defterGoose 7y agoMore likely than not, though, Person A owns the watch company and puts the profits in an offshore tax Haven or uses them for stock buybacks, while keeping the R&D budget flatlined.