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How is this any kind of problem? They trade on the brand, obviously.
by JoeAltmaier 2y ago
How is this any kind of problem? They trade on the brand, obviously.
- cranberryturkey 2y agoThat's just capitalism. buy low sell high. how is that something prosecutable?
- stop50 2y agoacording to EU law companies have to check their suppliers for violations against a list of human right standards.
- morsch 2y agoStrictly speaking it's a directive, which the member states have to implement as law. And from what I can tell it only goes in effect in 2027. Of course, no one is stopping Italy from implementing it early.
- yorwba 2y agoThey're being prosecuted for labor law violations; having their fat margins revealed is just a side effect of the investigation.
- dylan604 2y agoSomething else that should be prosecutable is having a headline that so misleads the reader from that actual content that people are able to make comments like yours in online forums
- Zak 2y agoThe headline isn't. The illegal mistreatment of workers detailed in the article is.
- JoeAltmaier 2y agoAh! That might have been a better title. As it is, it's clickbait.
- yellow_postit 2y agoAlways be cautious if the url is business insider
- kibwen 2y agoSee the comment above, the price revelation is a side effect of an investigation into labor law violations. In the meantime, in a rational market, a product commanding a 50x markup would quickly have its price driven down by competitors, which is more evidence that our markets are dishearteningly irrational. Profit represents market inefficiency.
- clarkmoody 2y agoWhat's the markup on software?
- JoeAltmaier 2y agoClearly fashion and branding are immune to that calculus. Else we'd be buying designer clothes by the pound. In other news, it cost around $4 to mine each carat of Canadian diamond worth $100.
- s1artibartfast 2y agoThere is no crisis where markets don't supply handbags for less than $2k. Similarly, Markets are not a monolith so this doesn't prove anything about markets in general. Economics is a broad science which works to establish a model of commerce, with varying degrees of accuracy and utility. Profits are not an inherently bad thing or dirty word. It just means that surplus value was created by a transaction, and workers can profit too
- shortsunblack 2y agoProfit as intended means producer surplus. Economic theory predicts producer surplus reaching 0, while consumer surplus getting maximized. That is what competition does. It does tell everything about markets. This does not happen because of IP doctrines, which distorts competition. And advertising, which causes information asymmetries.
- s1artibartfast 2y agoHighschool theory might predict that for the price of butter, but everything after that is more complicated. I feel like you are setting up strawmen positions for economic theory, using more economics to refute them, and then claiming economics is bunk.
- BurningFrog 2y agoTrue. People aren't paying $2,780 for the bag. They're paying for the brand name, and they get what they paid for. Seller and buyer are both happy. The bad PR around this may ruin the brand value though, making the bags worth less retroactively.