8 ms·

They have been selling for a dollar for 35 years. I'm really curious how their inventory has changed over this period. One 2020 dollar is 40 cents in 1985 dolla

They have been selling for a dollar for 35 years. I'm really curious how their inventory has changed over this period. One 2020 dollar is 40 cents in 1985 dollars, but the cost of consumer goods has decreased significantly since 1985. So I wouldn't be surprised that their package sizes have not changed much. Related trivia: Between 1886-1959, the price of a bottle of Coke was a nickel [1]. [1] https://www.npr.org/sections/money/2012/11/15/165143816/why-coke-cost-a-nickel-for-70-years https://www.npr.org/sections/money/2012/11/15/165143816/why-...

jklinger410 5y ago
I would trust a private inventory and accounting audit of the dollar tree for insight into inflation more than almost any government funded study.
melony 5y ago
Globalisation happened, massive economies of scale in manufacturing.
- echelon 5y ago
  And now globalization has equalized global workforces with purchase and compensation parity. Costs must rise. Money is to be made on trade and labor cost deltas, but those eventually, almost thermodynamically, equalize.
  - Retric 5y ago
    Comparative advantage is still in effect. It just comes down to stuff like economics of scale, language, local laws, etc rather than simply ultra low wages. An interesting long term effect of this is there is a second whiplash as stalled first world economies eventually benefit from the world catching up to them.
  - jbay808 5y ago
    That's one thing. Also, China is no longer buying US treasuries, which for a long time contributed to reducing US inflation via underpriced imports.
    - melony 5y ago
      So what are they doing with the extra US dollars now?
      - jbay808 5y ago
        Buying oil, I think. And perhaps saving some for Evergrande's rainy day.
      - nostrademons 5y ago
        Belt and Road Initiative: https://en.wikipedia.org/wiki/Belt_and_Road_Initiative https://en.wikipedia.org/wiki/Belt_and_Road_Initiative Basically, they're using it to buy American heavy equipment and build infrastructure in developing nations, principally in Africa and Central Asia. They lease the infrastructure back to the host country for cash (i.e. favorable terms of trade), and if the host country defaults, there's a clause that China can take over the infrastructure. They may have similar clauses in case of military action, though in that case, it kinda doesn't matter what the law or contract says. It's China's version of the petrodollar-for-military-bases system. When you run a trade surplus, use that to build up infrastructure that you can take advantage of in geopolitical conflicts. Colonialism never really went away, it just got more refined.
        GreenWatermelon 5y ago
        This also contributes to increasing China's global influence, which means reducing the US's. Proxy economic war, rather than colonialism, imo.
        rsj_hn 5y ago
        > China's version of the petrodollar-for-military-bases system What do you mean when you say "petrodollar for military basis system"? Before you answer, please remember that a petrodollar is the analogue of a eurodollar -- it refers to dollar assets owned by petroleum exporting states, namely OPEC.
koolba 5y ago
Likely through shrinkflation: https://en.wikipedia.org/wiki/Shrinkflation https://en.wikipedia.org/wiki/Shrinkflation Next time you’re at the supermarket check if the bacon brands you remember are still a pound. I bet many of them are now 12 ounces.
- skrebbel 5y ago
  12 ounces is, apparently, 0.75 pounds. It's about 340 grams.
  - ruined 5y ago
    good bot
  - idonotknowwhy 5y ago
    I wish you were always 12 minutes in front of me in comment threads :)
- paulpauper 5y ago
  by charging huge markup on per unit cost by reducing quantity. 3 pills of Tylenol for example for $1 instead of a bottle which may have dozens for $6 . The brands create special mini-sized packages specifically for dollar stores. Big business.
  - 14 5y ago
    With often same great sized packaging only with smaller amounts inside. Very wasteful. Deodorant, chips, pills, etc all look like a normal sized bottle but in reality is a smaller size for dollar stores. I have also heard things like canned goods of say a brand of soup they have special made for places like Costco that demand higher quality ingredients where the dollar store would get lower quality versions. Perhaps cheaper meat or less of it. Still tastes like the original just that it’s not actually nutritionally the same.
    - OJFord 5y ago

jklinger410 5y ago

I would trust a private inventory and accounting audit of the dollar tree for insight into inflation more than almost any government funded study.

melony 5y ago

Globalisation happened, massive economies of scale in manufacturing.

echelon 5y ago
And now globalization has equalized global workforces with purchase and compensation parity. Costs must rise. Money is to be made on trade and labor cost deltas, but those eventually, almost thermodynamically, equalize.
- Retric 5y ago
  Comparative advantage is still in effect. It just comes down to stuff like economics of scale, language, local laws, etc rather than simply ultra low wages. An interesting long term effect of this is there is a second whiplash as stalled first world economies eventually benefit from the world catching up to them.
- jbay808 5y ago
  That's one thing. Also, China is no longer buying US treasuries, which for a long time contributed to reducing US inflation via underpriced imports.
  - melony 5y ago
    So what are they doing with the extra US dollars now?
    - jbay808 5y ago
      Buying oil, I think. And perhaps saving some for Evergrande's rainy day.
    - nostrademons 5y ago
      Belt and Road Initiative: https://en.wikipedia.org/wiki/Belt_and_Road_Initiative https://en.wikipedia.org/wiki/Belt_and_Road_Initiative Basically, they're using it to buy American heavy equipment and build infrastructure in developing nations, principally in Africa and Central Asia. They lease the infrastructure back to the host country for cash (i.e. favorable terms of trade), and if the host country defaults, there's a clause that China can take over the infrastructure. They may have similar clauses in case of military action, though in that case, it kinda doesn't matter what the law or contract says. It's China's version of the petrodollar-for-military-bases system. When you run a trade surplus, use that to build up infrastructure that you can take advantage of in geopolitical conflicts. Colonialism never really went away, it just got more refined.
      - GreenWatermelon 5y ago
        This also contributes to increasing China's global influence, which means reducing the US's. Proxy economic war, rather than colonialism, imo.
      - rsj_hn 5y ago
        > China's version of the petrodollar-for-military-bases system What do you mean when you say "petrodollar for military basis system"? Before you answer, please remember that a petrodollar is the analogue of a eurodollar -- it refers to dollar assets owned by petroleum exporting states, namely OPEC.

koolba 5y ago

Likely through shrinkflation: https://en.wikipedia.org/wiki/Shrinkflation https://en.wikipedia.org/wiki/Shrinkflation Next time you’re at the supermarket check if the bacon brands you remember are still a pound. I bet many of them are now 12 ounces.

skrebbel 5y ago
12 ounces is, apparently, 0.75 pounds. It's about 340 grams.
- ruined 5y ago
  good bot
- idonotknowwhy 5y ago
  I wish you were always 12 minutes in front of me in comment threads :)
paulpauper 5y ago
by charging huge markup on per unit cost by reducing quantity. 3 pills of Tylenol for example for $1 instead of a bottle which may have dozens for $6 . The brands create special mini-sized packages specifically for dollar stores. Big business.
- 14 5y ago
  With often same great sized packaging only with smaller amounts inside. Very wasteful. Deodorant, chips, pills, etc all look like a normal sized bottle but in reality is a smaller size for dollar stores. I have also heard things like canned goods of say a brand of soup they have special made for places like Costco that demand higher quality ingredients where the dollar store would get lower quality versions. Perhaps cheaper meat or less of it. Still tastes like the original just that it’s not actually nutritionally the same.
  - OJFord 5y ago