4 ms·

If it is simply pricing power then... why now? If companies could raise prices 20% all along, why did they wait till now to do so? Why not in 2019?

mrguyorama 4y ago
So you apparently haven't paid attention at all to all the shrinkflation that has happened over the past 20 years?
pwinnski 4y ago
If you consider "motive, means, and opportunity" then your question seems to be, essentially, "the motive should have been there in 2019, why now?" and the answer is that the means have become stronger through increased corporate concentration, and the opportunity is greater because the pandemic and political climate provides an excuse. Not that shame was a huge pressure in 2019, but it's even less of one now. Some percentage of people, even here on this very site, will argue with these conclusions, and say it's the pandemic, or wage pressure, or anything but pricing power, and that percentage of people is higher today than it has been in the past. The pandemic and political environment provides an excuse that wasn't handy in 2019. The political environment provides cover. The naked greed has always been there (the motive), but the means and opportunity are stronger today than before.
paulddraper 4y ago
Because corporations only became greedy in 2023. /s It's all pretty silly. I can go to the store and buy a TV for half of what it cost me 5 years ago, even with inflation. Companies push prices down as well as up.
- 93po 4y ago
  The prices of items where people spend 90% of their money are up. Obviously tech prices decrease over time, this has been true since the advent of bronze weapons and tools. Healthcare, housing, education, food, child care, vehicles, gas, insurance, utilities - all up.
  - paulddraper 4y ago
    Humans services -- healthcare, education, child care -- are dominated by wages and are up. Gas is the same as a decade ago.
    - 93po 4y ago
      Wages per measure of productivity are way, way down. People are both doing more and also getting paid less for it. Gas is three times more expensive than it was 20 years ago, and even when adjusted for inflation, 60% higher than it was 20 years ago.
- pieter_mj 4y ago
  You're mentioning one of the few goods for which price went down. A reason for the price cut is probably that many new TV's have become connected to the internet and so you also pay with your data.
- acuozzo 4y ago
  > I can go to the store and buy a TV for half of what it cost me 5 years ago, even with inflation. What's silly is that the same is true for "a car" if you're as willing to overlook the details as you are with "a TV". "A house" too! House prices are going down! All you need to do is move from a mansion to a trap house and B-O-O-M you're definitely spending less than half of what you were per month.
bluefirebrand 4y ago
My guess is it's sort of a game of chicken. If I raise my prices but my competitor down the road doesn't, then I probably lose. At the very least consumer watchdogs will be all over me. The massive media blitz about how we're in a recession and facing hyper inflation is creating the perfect smokescreen. If I raise my prices now, in current climate, ky competitors will likely follow suit. Because we all know we can get away with playing dumb and pretending it's just inflation.
DangitBobby 4y ago
I wonder how much inflation is caused by economists announcing to the world that they expect inflation?

mrguyorama 4y ago

So you apparently haven't paid attention at all to all the shrinkflation that has happened over the past 20 years?

pwinnski 4y ago

If you consider "motive, means, and opportunity" then your question seems to be, essentially, "the motive should have been there in 2019, why now?" and the answer is that the means have become stronger through increased corporate concentration, and the opportunity is greater because the pandemic and political climate provides an excuse. Not that shame was a huge pressure in 2019, but it's even less of one now. Some percentage of people, even here on this very site, will argue with these conclusions, and say it's the pandemic, or wage pressure, or anything but pricing power, and that percentage of people is higher today than it has been in the past. The pandemic and political environment provides an excuse that wasn't handy in 2019. The political environment provides cover. The naked greed has always been there (the motive), but the means and opportunity are stronger today than before.

paulddraper 4y ago

Because corporations only became greedy in 2023. /s It's all pretty silly. I can go to the store and buy a TV for half of what it cost me 5 years ago, even with inflation. Companies push prices down as well as up.

93po 4y ago
The prices of items where people spend 90% of their money are up. Obviously tech prices decrease over time, this has been true since the advent of bronze weapons and tools. Healthcare, housing, education, food, child care, vehicles, gas, insurance, utilities - all up.
- paulddraper 4y ago
  Humans services -- healthcare, education, child care -- are dominated by wages and are up. Gas is the same as a decade ago.
  - 93po 4y ago
    Wages per measure of productivity are way, way down. People are both doing more and also getting paid less for it. Gas is three times more expensive than it was 20 years ago, and even when adjusted for inflation, 60% higher than it was 20 years ago.
pieter_mj 4y ago
You're mentioning one of the few goods for which price went down. A reason for the price cut is probably that many new TV's have become connected to the internet and so you also pay with your data.
acuozzo 4y ago
> I can go to the store and buy a TV for half of what it cost me 5 years ago, even with inflation. What's silly is that the same is true for "a car" if you're as willing to overlook the details as you are with "a TV". "A house" too! House prices are going down! All you need to do is move from a mansion to a trap house and B-O-O-M you're definitely spending less than half of what you were per month.

bluefirebrand 4y ago

My guess is it's sort of a game of chicken. If I raise my prices but my competitor down the road doesn't, then I probably lose. At the very least consumer watchdogs will be all over me. The massive media blitz about how we're in a recession and facing hyper inflation is creating the perfect smokescreen. If I raise my prices now, in current climate, ky competitors will likely follow suit. Because we all know we can get away with playing dumb and pretending it's just inflation.

DangitBobby 4y ago

I wonder how much inflation is caused by economists announcing to the world that they expect inflation?