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It would not be illegal price collusion if every auto maker came to the same conclusion: raise prices. UBI seems to completely ignore economics both in theory a

It would not be illegal price collusion if every auto maker came to the same conclusion: raise prices. UBI seems to completely ignore economics both in theory and practice. It’s almost like a political fantasy in order to get votes, but has never shown actual promise anywhere in the world.

matz1 6y ago
>It would not be illegal price collusion if every auto maker came to the same conclusion: raise prices They could, until one of them try to out compete other by lowering price.
ClumsyPilot 6y ago
This is a total absurdity, cars are not a daily good people need to survive. If all car companies suffer a derangement simultaneously and decides they are entitled to a larger share of my money, I, along with other consumers, will put off our purcase untill they've come to their sences. A few months of reduced sales willl get the message across. With rents the situation is a bit more plausible, but car manufacturers have excess capacity, and there is no ' limited nunber of cars' in the world. If we needed to double their production, we would.
- Simulacra 6y ago
  Which example can you understand? How about laundry soap. That’s a necessity. Store brands go up by 50% because people can afford it. If anything a UBI shifts money from the taxpayer to corporations.
  - ClumsyPilot 6y ago
    Can actually demonstrate thay this effect of " raising prices because people can afgord it" has ever happened? Because to me it looks like a serious misinterpretation of economics
    - Simulacra 6y ago
      You missed the UBI hypothetical buddy. Scroll back up. Why are products priced the way they are? Why is an Apple Macbook $2,000 instead of $200? Because the market will pay for it. If no one was willing to pay $800 for a new phone they would not be $800, that price would have to come down. If a UBI is instituted, this new information that consumers now have a guaranteed hand out from the government, it means the price at which the market CAN pay has increased. Thus if you're a seller you...raise the prices. This is not a moral question.
      - ClumsyPilot 6y ago
        Stop arguing by just reiterating the same set of assumptions over an over again. Especially since most of them are demonstrably wrong. Firstly most products are commodities and are priced based on cost of production. They are volume products in international markets, people will import grain from across the world if that's cheaper. Yoy can't raise prices on them just because you want to. Goods like Macbooks are the minority, and most peope who buy macbooks arent on minimum wage and UBI will increase their incomes by like 5% big woop. Pick up a book on economics and you will realise that economy is not that predictable and mechanistic, and that there are mutiple competing theories, and all ofbthem are ibconplete. So no matter what you believe ecobomically, you should be carefull rather than dogmatic about it.
danans 6y ago
> It would not be illegal price collusion if every auto maker came to the same conclusion: raise prices No car company raises (or for that matter lowers) prices independently without considering what their competitors are doing. All of them raising their prices together in that context is collusion.

matz1 6y ago

>It would not be illegal price collusion if every auto maker came to the same conclusion: raise prices They could, until one of them try to out compete other by lowering price.

ClumsyPilot 6y ago

This is a total absurdity, cars are not a daily good people need to survive. If all car companies suffer a derangement simultaneously and decides they are entitled to a larger share of my money, I, along with other consumers, will put off our purcase untill they've come to their sences. A few months of reduced sales willl get the message across. With rents the situation is a bit more plausible, but car manufacturers have excess capacity, and there is no ' limited nunber of cars' in the world. If we needed to double their production, we would.

Simulacra 6y ago
Which example can you understand? How about laundry soap. That’s a necessity. Store brands go up by 50% because people can afford it. If anything a UBI shifts money from the taxpayer to corporations.
- ClumsyPilot 6y ago
  Can actually demonstrate thay this effect of " raising prices because people can afgord it" has ever happened? Because to me it looks like a serious misinterpretation of economics
  - Simulacra 6y ago
    You missed the UBI hypothetical buddy. Scroll back up. Why are products priced the way they are? Why is an Apple Macbook $2,000 instead of $200? Because the market will pay for it. If no one was willing to pay $800 for a new phone they would not be $800, that price would have to come down. If a UBI is instituted, this new information that consumers now have a guaranteed hand out from the government, it means the price at which the market CAN pay has increased. Thus if you're a seller you...raise the prices. This is not a moral question.
    - ClumsyPilot 6y ago
      Stop arguing by just reiterating the same set of assumptions over an over again. Especially since most of them are demonstrably wrong. Firstly most products are commodities and are priced based on cost of production. They are volume products in international markets, people will import grain from across the world if that's cheaper. Yoy can't raise prices on them just because you want to. Goods like Macbooks are the minority, and most peope who buy macbooks arent on minimum wage and UBI will increase their incomes by like 5% big woop. Pick up a book on economics and you will realise that economy is not that predictable and mechanistic, and that there are mutiple competing theories, and all ofbthem are ibconplete. So no matter what you believe ecobomically, you should be carefull rather than dogmatic about it.

danans 6y ago

> It would not be illegal price collusion if every auto maker came to the same conclusion: raise prices No car company raises (or for that matter lowers) prices independently without considering what their competitors are doing. All of them raising their prices together in that context is collusion.