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by rapjr9
1202 days ago
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There seems to be a growing trend for companies to favor rich buyers. When companies start losing customers they raise prices instead of reacting to the market and lowering prices (it's almost like they think they have a monopoly or something). There are way more new products that only the rich could afford ($150,000 camper vans) than there ever used to be. The EV makers have totally ignored the under $20,000 market. This seems doomed, the eventual result will be no sales since the market will saturate quickly due to few buyers while the economy (which is 70% just people buying things) will collapse because no one can afford anything any more and the companies will no longer be able to make their numbers no matter how high they raise prices. |
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And it makes sense, interest rates have been 0...tech company valuations are absurd, with insane tech salaries and RSUs...the stock market reaching all-time high in 2020. People gambling money on crypto, NFTs, wallstreebets, etc. It feels like the economy has been in turbo mode and it reached a peak where people had so much money that they were willing to put it into beanie babies and tulips because they had nothing else to do with it.
Businesses are going to keep raising prices until their numbers start to go down. Despite the inflation we've been seeing, people are still spending money [1].
I think it's easy to blame business strategy, but I think it's worth looking at other economic factors that are causing business strategy...like the decade of free money due to the never-ending QE policy of the fed.
Eventually we'll run out of other people's money and we'll enter a recession. Or we'll just enter into a period of extreme class divide where the middle class doesn't exist anymore...there's either extremely wealthy or poverty.
[1] https://www.cnbc.com/2023/02/15/retail-sales-january-2023-.h...