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This has been a problem since industrialization and I think is inherent in capitalist systems which strive towards maximum profit margins over every other facto
by AngryData 1y ago
This has been a problem since industrialization and I think is inherent in capitalist systems which strive towards maximum profit margins over every other factor. Where ever a corner can be cut it will be in the name of profit, reputation be damned because they can just use advertising, marketing, and marketplace dominance to suppress concerns over quality as they boil the frog.
Declining product quality was even one of the major complaints luddites had over factory looms, it wasn't just that they were being replaced with lesser skilled workers and their wages cut, but the quality of fabric from the factory looms they built just got worse and worse over time so they couldn't even claim their loss of wages was worth having better clothes, they got worse wages and worse clothes.
Everyone likes to hem and haw over free market supposedly fixing such problems, but completely ignores the huge amount of friction in moving markets that require massive tons of capital to even challenge to the smallest degree. And even if you get the overall established market to change practices for a small time span it is only through essentially open war with one another as the companies battle it out; and as soon as there is either a clear dominating winner, or a few of the larger companies essentially decide peace is better and stop truly challenging each other for dominance, everything goes right back to reducing quality and increasing profit margins. The big companies know being at perpetual war in the market, which is what would be best for consumers in providing the best prices and products, makes their position less stable and leaves them vulnerable to new challengers, and instead tend to default towards unspoken collusion with other big established companies in order to not rock the boat. It makes the companies more stable and profitable, but is worse for consumers, and gets even worse for consumers when those companies start looking at other ways to entrench their position through politics and law.