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> This is another social norm that is being discarded by modern society. You don’t go to a store two days in a row and see different prices without a good reaso
by mrexroad 4y ago
> This is another social norm that is being discarded by modern society. You don’t go to a store two days in a row and see different prices without a good reason.
… Unless that “store” is Amazon, but maybe that’s in support of your point as it’s “modern” relative to legacy retail. However, in this case it’s maybe more that pricing reflects fundamental shifts in the marketing/retail/fulfillment backend over the past decade-plus than a “social norm” being discarded. No profit seeking business would leave money on the table willingly —- greed has always been the default, new tools will always come along to enable it as old tools become less effective.
Prices should roughly double every two decades with “normal” inflation. However over past decade or two we haven’t quite had “normal inflation” and we’ve also had somewhat weirdly static prices for some consumer goods (thanks easy capital + efficiencies from MBAs/offshoring/etc?) and yet unhinged price increases in other areas (college ed, medical care). The overall system has some rebounding/balancing to go (both at micro and macro level) before pricing changes have a clearer relationship to the fed rate. There’s an entire generation of people only knowing zero-percent-interest and sub-two-percent inflation rates as the norm and some thinks those days will return once [whatever now is] passes.
- solarmist 4y agoSure, you’re explaining the mechanism of what I’m talking about. And yet this generation of low interest rates has gotten progressively and significantly poorer than previous generations. There’s lots of pieces of this at work.