4 ms·

"Greedflation" is such an odd word. It implies that, as of late, these companies have "jacked up the prices under the cover of inflation". But since when have a

"Greedflation" is such an odd word. It implies that, as of late, these companies have "jacked up the prices under the cover of inflation". But since when have any of these corporate entities needed a reason to increase their prices or lower their wages? So strange that we demand a rationale when it appears to me that they are behaving as they are made to behave?

tiborsaas 3y ago
I think this was always true, but maybe many companies realized that they were playing it too safe and conservative with price bumps? What changed (besides a good excuse) is big data being and analytics being much easier to obtain and manage. If people can't get the same product category cheaper anywhere else and they keep buying it then of course the will raise more aggressively. I feel the market will eventually correct if "greedflation" is real. Someone must come along and say that they are happy with X% less which is theoretically possible, to capture a market more aggressively and use this narrative as a marketing tool. I know it's easier said than done when there are few players in an industry and the barrier to entry is rather high.
- adamwong246 3y ago
  My cynical take is that, in this market, "human work" is cheaper than the cost of "human living". There's no real malice, just supply and demand. We've automated all our labor but we expect our workers to be ever more productive. Of course that can't be sustained, eventually the average value produced by a worker exceeds their cost of living. And then... IDK what happens next.
MattPalmer1086 3y ago
If one company unilaterally increase their prices in a stable environment they will probably lose market share to their competitors. I guess that when prices are rising sharply anyway, it's easier to raise them and it won't be noticed so much. And their competitors probably make the same calculation. At least, that's what I understand by it.
- Gibbon1 3y ago
  In a lot of industries you have a company that's a price leader. If they raise prices their competitors will also raise prices to increase profits instead of trying to take away market share from the price leader. They'll do that because it's trivial to do vs the risk and logistical hassle of trying to increase production. Remember the price leader can instantly drop prices again which could put you underwater.

tiborsaas 3y ago

I think this was always true, but maybe many companies realized that they were playing it too safe and conservative with price bumps? What changed (besides a good excuse) is big data being and analytics being much easier to obtain and manage. If people can't get the same product category cheaper anywhere else and they keep buying it then of course the will raise more aggressively. I feel the market will eventually correct if "greedflation" is real. Someone must come along and say that they are happy with X% less which is theoretically possible, to capture a market more aggressively and use this narrative as a marketing tool. I know it's easier said than done when there are few players in an industry and the barrier to entry is rather high.

adamwong246 3y ago
My cynical take is that, in this market, "human work" is cheaper than the cost of "human living". There's no real malice, just supply and demand. We've automated all our labor but we expect our workers to be ever more productive. Of course that can't be sustained, eventually the average value produced by a worker exceeds their cost of living. And then... IDK what happens next.

MattPalmer1086 3y ago

If one company unilaterally increase their prices in a stable environment they will probably lose market share to their competitors. I guess that when prices are rising sharply anyway, it's easier to raise them and it won't be noticed so much. And their competitors probably make the same calculation. At least, that's what I understand by it.

Gibbon1 3y ago
In a lot of industries you have a company that's a price leader. If they raise prices their competitors will also raise prices to increase profits instead of trying to take away market share from the price leader. They'll do that because it's trivial to do vs the risk and logistical hassle of trying to increase production. Remember the price leader can instantly drop prices again which could put you underwater.