Comment by darth_avocado
16 hours ago
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?
> 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?
It's a problem because the business models are providing alternatives of what their customers value. You're arguing that because Costco, one of, if not the most successful retailers in the world, can do it why can't all stores? I can assure you every business wants to be Costco.
But also, I've been to Costco. And they offer what they want in quantities that they want. And it's often not what I want no matter how well they treat their employees. Also the checkout lines were very long.
Business 101? Take a step back. What you're describing is the feedback mechanism of the competition that drives prices down. Supply, demand, price. Econ 101. The reason prices aren't infinite is not because the evil corporations are conspiring to increase them slowly enough that customers barely notice. It's because, if they increase them too much, they will lose business to their competitors.
Apple has the ability to raise prices because customers value its ecosystem. But, OK. Why didn't they raise the price by thousands? Do you think people didn't notice the few hundred dollar price increase drip? It looks to me like people did notice. It's because at a certain price, it's worthwhile to hold your nose and use a different operating system.