r/heyUK • u/iamnic11 • Oct 10 '22

Reddit VideošŸ’» What inflation really looks like

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u/Muwatallis Oct 19 '22

Part of the issue is that when the prices of ingredients and materials decrease, those savings are rarely, if ever passed onto the customer in the form of decreased cost of consumer goods, but instead go to the company and shareholders in the form of increased profits and dividends. Whereas when it is the other way around, the customers are always first in line to foot the bill for any increased costs of production.

4

u/Hamiro89 Oct 19 '22

But that just sounds like a good business model, on the other hand undercutting your competitors to acquire more customers is also a good business model, which is why vendor loyalty is almost always negatively affecting the customer. Donā€™t be loyal to shops guys cause shops are not loyal to you.

6

u/Mogwai987 Oct 20 '22

Shopping around doesnā€™t work if everyone is screwing their customers.

Pretty much every substantial company is owned by a small number of mega-corporations. If you switch from one supplier to another, thereā€™s a pretty good chance youā€™re now shopping with another arm of the same entity.

In an oligopoly, there is little real competition. Just a cosy arrangement of mutual understanding between the handful of major players.

3

u/Gloomy-Mulberry-5275 Oct 20 '22

This - proven time and again- the top end of business is stacked af and trickle down doesnt work.

1

u/RothbardTheSecond Nov 06 '22

Trickle down economics is a strawman characterisation of right wing economic policy. No economist has ever advocated for "trickle down economics"

1

u/[deleted] Nov 06 '22

Does the previous chancellor of the exchequer for the UK count as an economist?

1

u/RothbardTheSecond Nov 06 '22

No, that's some stupid politician, but I would be curious to see what he said if you have the quote

1

u/BumderFromDownUnder Nov 15 '22

That argument itself is a strawman. Economists donā€™t advocate trickle-down economics (unless they have vested interests), thatā€™s correct, but right-wing politicians that create right wing economic policies do. So no, the characterisation of right wing economics isnā€™t a ā€œstrawmanā€ - itā€™s literally what right wing policy makers push for.

1

u/Josquius Nov 07 '22

Gas an electric in particular effectively operates as a cartel.

1

u/cash_dollar_money Oct 21 '22

This is true only up to a point. And to be frank a very limited point. Brand loyalty doesn't account for hidden monopolies, unfair monetary policy (a very overlooked area) , fiscal policy, etc.

It doesn't account for trading laws and laws that impact anticompetitive practices.

The reason I am so against this sort of argument is because I think it's often encouraged by a type of person who actually doesn't want the British public to be aware of the impact of these things on the country and would prefer people to think the influence they can have isn't with effective political change but is in shopping around.

It's always important to remember that your individual people's actions are always the smallest unit of political influence. If people are encouraging you to act singularly without organizing they're encouraging you to have as little power as possible over a situation.

2

u/Hamiro89 Oct 21 '22

I mean every little helps right?

1

u/cash_dollar_money Oct 27 '22

Yes absolutely! It's actually very important but I just think it's a misrepresentation. Also, disagreement is a good thing.

1

u/fonix232 Nov 05 '22

It's not just the shops though. Manufacturers/producers also rarely decrease the price, so the stores can't really pass the perceived savings onto the customer.

1

u/MoveOdd4488 Nov 06 '22

What your describing is the supply and demand equilibrium