A Serious Question

Kevster

Can I ask a serious question (and forgive me if it sounds stupid): Why is the fact that fewer and fewer people are buying consumer products such as clothes, electrical equipment, etc. a problem? Surely this puts power back in the hands of the consumer themselves? I mean, if we just hold off, the prices will drop, won't they?

I just get very annoyed when we are told to go out and spend our money, when we have just spent the last decade or so being overcharged on all products we buy.

Kevin.

flogen

Moved to Consumer Issues.

Corruptedmorals

...Or the shops will go into liquidation. Parts of Arcadia are in serious trouble, Habitat's gone..

jaffa20

or the businessess will have to lay of their staff... Big nasty circle

wmpdd3

Corruptedmorals wrote: »

...Or the shops will go into liquidation. Parts of Arcadia are in serious trouble, Habitat's gone..[/QUO


Which Arcadia brands?

Kevster

Isn't that their own fault, partly? They took a risk, the risk failed, and now they are paying the consequences. It is just like all of the apartment blocks that we have seen sprouting up in the past few years. The ones that are being built now will probably never sell out. That's the builders' fault though - They took risks, and the risks have failed.

Forgive me for saying so but I have no sympathy for Arcadia or Habitat.

miju

your right Kevster holding off is a good thing. I'm sure I'm not the only one to have noticed the stores pretty much all having 50% off sales for the last couple of months.

Nody

Kevster wrote: »

Can I ask a serious question (and forgive me if it sounds stupid): Why is the fact that fewer and fewer people are buying consumer products such as clothes, electrical equipment, etc. a problem? Surely this puts power back in the hands of the consumer themselves? I mean, if we just hold off, the prices will drop, won't they?

I just get very annoyed when we are told to go out and spend our money, when we have just spent the last decade or so being overcharged on all products we buy.

Kevin.

In short no for a few reasons:

1) People will not in general hold of their buying of anything except instead of getting a 50" Plasma TV they now get a 40" one as their credit limit is reduced. Other things will also need to be bought to replace what is broken etc. If anything I'd recommend investing in booze companies though, esp. the cheap stuff and the most exclusive once (the middle once will tumble though).
2) The prices will more likely increase then decrease due to China and the way that materials in general is going currently (did you know for example China bought a literal speaking mountain in Peru of tin to make sure they got a steady supply?) Raw materials will continue to sky rocket as China keeps on buying up the sources and have it all shipped to China for it's own population. India is also growing here but China is by far the biggest culprit.
3) People are stupid; never forget this ultimate law of the market. People will not act in a coherent intelligent manner but rather by impulses and feelings and often with out any rationale at all. Hence any coordination etc. which you hint at will not happen.

dudara

An alternative view is as follows. If we hold off on purchasing, then some stores will go under, providing us with lesser choice. This could lead to higher prices as fewer operators will share the market.

here.from.day.1

jaffa20 wrote: »

or the businessess will have to lay of their staff... Big nasty circle

+1, this is what happens. Unemployment will rise and cause more problems.

rubadub

With online stores there is competition for the Bricks &Mortar shops, even for high postage cost items. Look at cds, many stores have dropped prices a lot to have to compete with the online stores. I can imagine more places opening up which are essentially pumping out stuff from a warehouse with a virtual showroom setup.

You can get things a lot cheaper online than many would even consider about getting online, like bicycles.

ixoy

Also if we all stop buying, then government returns drop due to lower VAT returns, etc. The government then can't finance projects it requires and the economy could falter even further as a result.

Kevster

Thanks - There have been a lot of interesting replies. Nody, did you know that China also bought a huge tract of land in DR Congo (also for the extraction of minerals)? At the same time, however, they have agreed to build-up the infrastructure of the country.

Whilst it is pleasing to see practically every shop offering bargains or 50% sales (I even saw a 70% sale), I guess that - in the long run - if we don't buy stuff, things will get very bad indeed for a lot of people who are in or around the poverty line. I reiterate that I don't have any sympathy for the shops, but I do have sympathy - of course - for all the people that are going to suffer because of this.

miju

unfortunately though kevster that is the nature of the free market. we reap the benefits but also it's ill winds