Comment by mhb
17 hours ago
Yeah sure. That's the logic that elects Mamdani. Maybe you're confused because instead of going down, prices increased less than they otherwise would have.
Economics happens on the margins where the reality is that store A reduces its costs and lowers its prices to compete with Store B. Or are you paying $100 for a jar of peanut butter?
Ehh. Corporate profits are at all time highs. The idea that somehow if corporations replace workers or pay them less, will somehow ensure we see smaller price increases as consumers is the fallacy that’s brought us here in the first place. Trying to make this a political discussion is pointless.
In-n-out hires a large staff and pays people well, and somehow their hamburger is still $3 and top quality. The same time when every other fast food chain is charging restaurant prices. Costco hires plenty of staff and pays them well, their prices are some of the lowest in the country. Meanwhile Walmart, target etc. are always understaffed and somehow still more expensive.
We were told that $20 minimum wage would make our McDonalds burgers to be $100 (like your hyperbole about peanut butter). Our burgers are just marginally more expensive than the rest of the country.
I still remember when all the fast food chains raised their prices together even when they didn’t need to post pandemic. Makes me really skeptical of the claim about companies lowering prices to compete with each other.
>In-n-out, Costco, Walmart
Congratulations. You've identified different business models.
> I still remember when all the fast food chains raised their prices together
If this is true, what force are you imagining constrains all the fast food chains from not having n times their current prices? Adjust n to whatever value is lower than your hyperbole trigger.
> Congratulations. You've identified different business models.
So pointing out business models that don’t raise prices while not customer service, to counter the claim of “hiring more people will raise the prices for us”, is a problem how?
> If this is true, what force are you imagining constrains all the fast food chains from not having n times their current prices
It is true. https://financebuzz.com/fast-food-prices-vs-inflation
You’re also responding to a partial statement of a sentence and not a complete argument. The argument being companies don’t necessarily lower prices to compete with one another even if they can.
And finally, why do companies don’t raise their prices infinitely? (A complete tangent to the discussion) Because well, business 101. Prices increases are a slow drip. And there is a limit after which price increases hurt the sales. And you always want an external excuse to point a finger at to make the prices palatable. Some companies can increase prices faster than the others. Apple made hundreds of billions in profits last year and they just increased the prices of MacBooks by hundreds of dollars. They could’ve easily not raised prices but why would you not when you have a loyal customer base that won’t mind paying a few hundred dollars extra?
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> That's the logic that elects Mamdani
Correct and increasingly popular logic? I agree entirely!