Something has been on my mind for a long time and when that happens you know that I feel compelled to share it with you, so here goes. Can someone tell me why does the equation of, supply + demand = greed, always? I have mulled over all of the usual things in my head and come up with the same thing somewhere at some point somebody gets greedy. Let us take a pair of jeans, as our example. What drove the price of what used to be a cheap good quality work clothing at say $10 per pair when I remember them at to over $70 a pair for the same quality pair of jeans today? Is this spike in price for exactly the same item fair to the consumer and in the long – term any good for business? I happen to believe that it is greed pure and simple and in the long – term it is killing the North American market share and opening the door to out sourcing and loss of jobs here North America.
What I am getting at is that once upon a time in the North America, a person would come up with an idea that he thought would be useful to others, like jeans and that person looked to make a living off of that idea, by making his idea into a good quality, affordable to all product. This entrepreneur, would then figure out everything involved in making and selling of the jeans. Once all of the expenditures like loans, rent, supplies, tools, labor costs, putting money aside for improvements and a desirable profit margin were all tallied, then a final selling price for the finished product could be arrived at. Let us say that the selling price of the jeans was $10; the total cost to make the pair of jeans was $7 dollars, leaving him $3 in profit at the end of the day.
This person’s plan was to sell as many pair of jeans to as many people as possible. This person was not trying to get rich by squeezing as much as they could out of one pair of jeans as possible, but by getting rich by allowing for as many people as possible the opportunity to buy their jeans. In this way the person making the jeans was happy, the people buying the jeans were happy and business was good and if his product was a good one and remained a good value purchase, said person got rich.
Over the years jeans go from being just good work clothing to every day wear and business gets really good and everybody wants them and other people start to make them and sell them and there is competition and something that I find strange begins to happen the price of the jeans does not go down it actually starts to go up. Why is that? The guy making the jeans blames it all on the rising price for the buttons, zippers, machinery that has gone up due to all of the other people now making jeans and increased labor costs and rising government taxes etc., but they are all just excuses for greed. The government gets greedy, the suppliers get greedy and most of all the manufacturers get greedy and pass all of this collective greed on to the consumer. Blame whomever you like,but the bottom line is that it is all about getting more and getting more in this case when nothing has really changed is jus plain greed on the part of those concerned.
When a retailer puts a 200-300 % mark up on what it sells to the consumer is that fair? How is it possible when the retailer says from the start that they are giving you the best value for your dollar, that the retailer is then able to have a 50% off sale and still make a profit? This is possible because the price of things has nothing to do with fair market values it has to do with getting you to over pay for everything and making a very few people very rich, very quickly. When everybody from suppliers to the government takes their pound of flesh in the same greedy fashion, we see the results today, a whole industry gone bust and the reasonably priced Asian goods, or made in Asia goods being the choice economically and practically for most average North American families.
Something that government and employers need to consider is that if it costs the employee more to dress for work, travel to work, eat and basically live, then of course the employee will be asking the employer for more money for salary and it will not only affect the greedy manufacturers it will affect the good ones, the honest fair employers as well. The garment industry did not go down in North America to the Asian Market because of out sourcing and wages. It was destroyed by the greed of its manufacturers, suppliers and the government. It was the unwillingness of an entire industry to be reasonable and heed the signs. The Asian market was successful in realising that if it settled for less per article and sold millions of articles they would gain market share and if nothing changed they would soon be in a position to take over the industry with nothing more than applying common sense and good value for our dollar.
This strategy of the Asians and the refusal of the greedy North American garment industry opened the door for cheaper goods from over seas and before you could say cash cow everything in the garment industry was being made out of the east and North American businesses were failing and jobs were being lost. The rising prices that our greedy manufacturers and parts industry claim are brought on by a finite amount of raw materials, being needed by more people wanting the products needed to produce an article has been proven to be a load of horse dung. Greed and the inability of company owners to be patient has ruined more companies than rising costs of production. There has always been a finite number of raw materials and I am not saying that little increases in pricing are not sometime warranted, but I contend that a $10 pair of jeans yesterday is still a $10 pair of jeans today no matter what fancy name and hard sell techniques the industry attempts to bombard us with.
The more likely scenario is that the manufacturer seeing that the patent on an idea will run out in X amount of years decides to push up the price of the much desired product and make as much money as they can while they are the only one making said product. The only problem is that one the reasons that the product was so desired by their customers was the reasonable price. In other words the popularity of his product was at least partially based on a notion that the consumer thought that they were paying a reasonable price for a good product. Without that feeling of getting value for their hard-earned dollars, this manufacturer’s once loyal customers starts to look at other items made by other people to get what they feel the best value for their dollar is. I think that this is what in this industry led people to Asian goods and goods made in Asia by North American companies.
It was North American greed that caused a whole industry to collapse and our governments to allow it to happen. Instead of bringing down their prices the owners of these business decided to invest in asian businesses, closed their doors to you their loyal employees and just keep you as customers with you not even being the wiser for it. This attitude towards business and how to conduct business has contaminated every facet of North American commerce and trade, so that where we once were giants and North American owned we are non players with foreign interest controlling and manipulating the markets. From cars to garments, real estate to medicine, North America is being out sold and out hustled and until North America adopts the business equation of, a good product + value for dollar = profits we the consumers of the world will continue to take our business elsewhere and that is not good thing for North America.
- Avaritia, Avarice , Φιλαργυρία ,Philargyria , Greed (chadjohnsonsmindset.wordpress.com)
- The Free Market At Its Worst (woodgatesview.wordpress.com)