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Economics Discuss Why must some companies make price increases that are sneaky--not straightforward? at the Political Forums; Originally Posted by AZRWinger Say the box of oatmeal 32 oz is $2. But thanks to Donald Trump withdrawing us ...

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Old 09-24-2020, 10:38 AM
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Default Re: Why must some companies make price increases that are sneaky--not straightforward

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Originally Posted by AZRWinger View Post
Say the box of oatmeal 32 oz is $2. But thanks to Donald Trump withdrawing us from the Paris accords the Chinese have increased emissions causing a drought or flooding in Iowa boosting the price of oats. The oatmeal manufacturer can boost the price or reduce the size of the box. A small price increase doesn't effect most customers but poor or those living on a fixed income who could afford $2 may not be able to afford $2.10. For them stretching a 30 oz box might be the only viable alternative. But hey, why not rail against evil capitalism instead of giving people options.
If the box of oatmeal is downsized, that will mean their purchasing it more often--unless, as you suggest, they just eat a little less.

But they could also eat a little less if the price is increased by five percent, from $2.00 to $2.10.

(By the way--and I know that this is a digression--I have never understood the term "fixed income," as it applies to those who collect Social Security. Those who work for a living are also on a "fixed income"--it is fixed by one's superior--unless, of course, one is on straight commission.)
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Old 09-24-2020, 12:24 PM
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Default Re: Why must some companies make price increases that are sneaky--not straightforward

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Originally Posted by pjohns View Post
If the box of oatmeal is downsized, that will mean their purchasing it more often--unless, as you suggest, they just eat a little less.

But they could also eat a little less if the price is increased by five percent, from $2.00 to $2.10.

(By the way--and I know that this is a digression--I have never understood the term "fixed income," as it applies to those who collect Social Security. Those who work for a living are also on a "fixed income"--it is fixed by one's superior--unless, of course, one is on straight commission.)
If all you can afford is $2 per box, then yes eat a little less. It beats the other option of starving because you can't afford the increased price.

Try writing a check for the water bill that is 10 cents less than the amount due or 10 cents more than your balance. Boom, late and NSF fees exponentially more than the shortage. But we can just casually assume people have the extra money to pay more because a smaller box is just too irritating.

Fixed income refers to people not employed who rely on a largely unchanging income. If you are working you have the option of finding a better paying job.
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Old 09-24-2020, 06:21 PM
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Default Re: Why must some companies make price increases that are sneaky--not straightforward

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Originally Posted by AZRWinger View Post
Say the box of oatmeal 32 oz is $2. But thanks to Donald Trump withdrawing us from the Paris accords the Chinese have increased emissions causing a drought or flooding in Iowa boosting the price of oats. The oatmeal manufacturer can boost the price or reduce the size of the box. A small price increase doesn't effect most customers but poor or those living on a fixed income who could afford $2 may not be able to afford $2.10. For them stretching a 30 oz box might be the only viable alternative. But hey, why not rail against evil capitalism instead of giving people options.
Do you purposely misread most of what i say?
when i write "capitalism has a dark side."
How do you manage to read it as "capitalism is evil"?
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Old 09-25-2020, 12:33 PM
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Default Re: Why must some companies make price increases that are sneaky--not straightforward

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Originally Posted by AZRWinger View Post
If all you can afford is $2 per box, then yes eat a little less. It beats the other option of starving because you can't afford the increased price.

Try writing a check for the water bill that is 10 cents less than the amount due or 10 cents more than your balance. Boom, late and NSF fees exponentially more than the shortage. But we can just casually assume people have the extra money to pay more because a smaller box is just too irritating.

Fixed income refers to people not employed who rely on a largely unchanging income. If you are working you have the option of finding a better paying job.
Most people who are claimed to be on a fixed income aren't. That includes all those on Social Security. Consequently if the cost of a box of cereal increases a dime, SSI will increase a nickel.

When I started collecting SS, my check was something like $1,400. Now it's over $2,000. Market based incomes have risen from roughly 14,000 to 27,000. And I no longer pay the $15/20K each year for SSI and Medicare.

So, am I better off? You bet.
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Old 09-25-2020, 02:45 PM
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Default Re: Why must some companies make price increases that are sneaky--not straightforward

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Most people who are claimed to be on a fixed income aren't. That includes all those on Social Security.
I receive Social Security. But I do not live on it--even partially.

I simply have it direct deposited into savings; whereas I live on my annuities.

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When I started collecting SS, my check was something like $1,400. Now it's over $2,000.
You are quite fortunate. Mine is merely $1,110.
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Old 09-25-2020, 02:48 PM
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Default Re: Why must some companies make price increases that are sneaky--not straightforward

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Originally Posted by AZRWinger View Post
If all you can afford is $2 per box, then yes eat a little less. It beats the other option of starving because you can't afford the increased price.

Try writing a check for the water bill that is 10 cents less than the amount due or 10 cents more than your balance.
I am certainly not wealthy. But I just cannot imagine a mere 10 cents being the dividing line between being able to afford something, and being entirely unable to afford it.
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Old 09-26-2020, 08:28 AM
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Default Re: Why must some companies make price increases that are sneaky--not straightforward

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Originally Posted by pjohns View Post
I am certainly not wealthy. But I just cannot imagine a mere 10 cents being the dividing line between being able to afford something, and being entirely unable to afford it.
The small increase is used as an illustrative example. Sure, lots of people can afford to pay the small increase but multiply it out over a wide range of expenses and people living paycheck to paycheck have a problem.

Remember the famous statistic that some huge percentage of Americans can't afford a modest unexpected expense? If you have $2 in your pocket or on your EBT card are you going to get the 32 oz box for $2.10 or the 28 oz for $2?

It's fashionable to condemn the manufacturer for reducing the size to keep it affordable but it's a let them eat cake attitude.
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Old 09-26-2020, 11:16 AM
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Default Re: Why must some companies make price increases that are sneaky--not straightforward

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Originally Posted by mr wonder View Post
Do you purposely misread most of what i say?
when i write "capitalism has a dark side."
How do you manage to read it as "capitalism is evil"?
Didn't you write.

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I'm not sure why some folks seem to want to pretend that capitalism and business is holy ground and that it's not routine practice for some business to be UN-ethical. Some seem to refuse to allow the idea that if it's business/capitalism that can be unethical or sketchy.

Ethical business and unethical business are both "business".
The Same as professional fight and a bar fight are both fights.

The history of business advertising is filled with half-truths and outright lies.
That's just an example, you have other posts in the thread decrying capitalism and the government that allowed capitalists to become rich while others suffered. There is no recognition of capitalism lifting more people out of poverty than any other system or providing so much opportunity unavailable in other systems. On what evidence an I to conclude you don't think capitalism is evil?
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Old 09-26-2020, 11:18 AM
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Default Re: Why must some companies make price increases that are sneaky--not straightforward

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Originally Posted by AZRWinger View Post
The small increase is used as an illustrative example. Sure, lots of people can afford to pay the small increase but multiply it out over a wide range of expenses and people living paycheck to paycheck have a problem.

Remember the famous statistic that some huge percentage of Americans can't afford a modest unexpected expense? If you have $2 in your pocket or on your EBT card are you going to get the 32 oz box for $2.10 or the 28 oz for $2?

It's fashionable to condemn the manufacturer for reducing the size to keep it affordable but it's a let them eat cake attitude.
Perhaps you have placed your finger--albeit inadvertently--upon the problem: Too many Americans are, as you said, "living paycheck to paycheck."

I strongly believe in the pay-yourself-first method. It works like this:

When one gets paid--however meager the amount may be; and whatever one's expenses might be--one should pay oneself first. Which is to say, one should set aside a set amount--say, 10 percent of the net pay--into savings.

Then, one should set aside enough money to pay all the monthly bills.

Next, one should set aside enough money to purchase food for the month.

Next, one should set aside enough money to purchase gasoline for the month.

And lastly, one should set aside enough money for entertainment for the month (if there is any money left over).

Too many people, I think, do this sort of thing upside-down.
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Old 09-26-2020, 11:49 AM
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Default Re: Why must some companies make price increases that are sneaky--not straightforward

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Originally Posted by AZRWinger View Post
Didn't you write.
Quote:
Originally Posted by mr wonder
I'm not sure why some folks seem to want to pretend that capitalism and business is holy ground and that it's not routine practice for some business to be UN-ethical. Some seem to refuse to allow the idea that if it's business/capitalism that can be unethical or sketchy.
Ethical business and unethical business are both "business".
The Same as professional fight and a bar fight are both fights.
The history of business advertising is filled with half-truths and outright lies.
That's just an example, you have other posts in the thread decrying capitalism and the government that allowed capitalists to become rich while others suffered.
AZ, is anything i said false?
Did i say that capitalism was evil?
Did you see the terms SOME and BOTH and "CAN BE".

Are you saying that the darkside of capitalism SHOULD NEVER be spoken aloud?

Quote:
Originally Posted by AZRWinger View Post
There is no recognition of capitalism lifting more people out of poverty than any other system or providing so much opportunity unavailable in other systems. On what evidence an I to conclude you don't think capitalism is evil?
Soo becasue you haven't noticed my positive comments about capitalism that means I think capitalism is evil?
You've commented on many issues on the board AZ and I haven't notice you make many, or any, positive comments about Democrats, Mexicans, or Black people sooo should i assume...?
on what evidence do i conclude otherwise?
seems to me I might want to give you the benny of the doubt. until you prove otherwise.

But concerning capitalism, if you notice I NEVER say capitalism is evil and i never promote a replacement for it.
Like with MANY issues i promote the consistent use of outside Checks and Reforms to make them BETTER.
as i said in another thread
...I apply Winston Churchill's quote about democracy
"...Many forms of Government have been tried, and will be tried in this world of sin and woe. No one pretends that democracy is perfect or all-wise. Indeed it has been said that democracy is the worst form of Government except for all those other forms that have been tried from time to time.…"
I apply the same view to Capitalism... to Policing, to Gov't and "America" as well.
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Last edited by mr wonder; 09-26-2020 at 11:56 AM..
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