The Inflation Thread

Discussion in 'Markets & Economies' started by ozcopper, Apr 1, 2013.

  1. Nugget

    Nugget Active Member Silver Stacker

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  2. Pirocco

    Pirocco Well-Known Member

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    The government allows?
    The government is the chains' first cause of this.
    The reduction of products life cycle is the result of compensating for the governments' thievery in the chain producing>earning>(delayed)spending. If govt steals a $1, a company has to find ways to lower its costs with $1, and cheaper materials is such a way. And this also happens along another path: without governments thievery, companies would suffice with lower turnovers (read: lower sales numbers - no need to sell X bulbs more) to achieve profit (and thus also suffice with being smaller, increasing competition).
    And the company has to lower its costs with that $1 if wages / intrest rates don't compensate for governments theft, and higher prices thus mean lower sales numbers.
    Look at Venezuela today, just entered the next phase on the road to the total destruction of economy and living-togethers: in a highpaced inflation scenario (50% official inflation), government forbid a big supermarket chain to further increase its prices. The same will happen as in Zimbabwe - the road to no supermarkets, no shops, no companies, nothing to buy anymore, and the prefix hyper.
     
  3. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    We've all heard about the inflation occurring in Venezuela at the moment...but now even the fashion mannequins are being inflated !!!!

    [youtube]http://www.youtube.com/watch?v=LHcwoCy_ZHA[/youtube]
     
  4. SilverSaviour

    SilverSaviour New Member

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    Planned obsolescence is a myth.
    low quality items are just that, low quality. Built to a price (like all items)
    Fashion is not an example of planned obsolescence, its the consumers that drive the fast changes in the fashion industry, not the manufacturers.
    The manufactures would much prefer NOT to go to all the effort of redesigning items, if they didn't they would stop making sales.
    There is not some conspiracy that things are secretly designed to fail after some time, even though they could last much longer.
    Everything is designed to a purpose and a budget.
    A cheap toaster will probably fail before an expensive toaster, a cheap car will probably wear out before an expensive car.

    If you want something that lasts longer you have to pay more money for it.

    Just for fun:
    http://simx.me/technonova/rants/the_myth_about_reliability.html
     
  5. Clawhammer

    Clawhammer Well-Known Member Silver Stacker

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    It's an interesting point SilverSaviour. Fashion plays a strong part of goods manufacture.

    I recently saw a doco on consumer items made in East Germany. The engineers were tasked with making products that were inexpensive (it was communist state remember) but would last. There are Fridges, TV's and calculators made during the 70's that are still going strong.

    Problem is... they stylishly look old and no one wants them anymore. Just like cars and clothes, fashion tastes dictate manufacturing efforts as much as the need for the item.
     
  6. SilverSaviour

    SilverSaviour New Member

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    The problem i see with that story is the "inexpensive" part. A communist country can't actually tell if an item is cheap or expensive. Prices are completely controlled and there is no price discovery or sense of cost.
    It's quite possible the fridges were actually built to a high quality, but the cost to consumers heavily subsidised.
     
  7. AngloSaxon

    AngloSaxon Active Member

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    In regards to consumer goods made behind the Iron Curtain, this takes me back to an example I heard of product control standards in the USSR. A target was made for production standards of for example televisions.

    Given there were no incentives to produce things well or deal with things being made poorly, it's not a free market after all with genuine customers who can take their business elsewhere, the production targets usually fell well behind.

    Which meant that whoever it was in charge of ensuring the production targets got the items pushed through any way possible in the month before the target was due. It was not uncommon for most of the years' production to be done right before the target was due, and if that meant hammering a television together with nails rather than carefully screwing it together, that's what happened.

    It wasn't important whether it worked or not Comrade, but we need to meet our production targets!

    What I'm getting at is the surviving Red fridges were probably made in a period of slow and careful production well away from the bussle of targets.

    It's far enough away from the Reds being around that you tell young people stories like this and they think it's too improbable to be true. I had someone tell me that there were never food queues either.
     
  8. Nugget

    Nugget Active Member Silver Stacker

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    To be absolutely fair this is true in Australia today. I have first hand experience & will not elaborate as it'd involve biting the hand that feeds me. Suffice it to say though I have expressed my views on quantity coming at the expense of quality numerous times & I've been told to pull my head in & toe the party line.

    I'm talking about a very successful company here.
     
  9. AngloSaxon

    AngloSaxon Active Member

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    ^^ I can imagine. We are in The West after all becoming victims to various types of socialism.
     
  10. SilverSaviour

    SilverSaviour New Member

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    If customers are still purchasing their products/services then it's probably not that bad OR its just a matter of time before they lose market share OR you work for the government ;)
     
  11. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    10kg bag of jap crumbs (Made in Australia) last week $46, this week $66.

    We did our annual repricing at the beginning of the year, most things up by about 10% - especially if it is a high demand product, had to redo some prices today as fish went up in price this week. :(

    The RBA let that $ slide too far.
     
  12. Nugget

    Nugget Active Member Silver Stacker

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    Woodies


    Used to be 6 Pack of 440's for $20

    Then it was a 4 Pack of 440's for $20 with options for 375mls in a 6 pack

    Felt like a couple of drinks this evening. Best deal was 4 x 375 for $15.. I see where this is headed
     
  13. metalzzz

    metalzzz Well-Known Member

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    Postage stamps going up to $1 from 70c
     
  14. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Don't forget it was 60c in 2014.
     
  15. Eureka Moments

    Eureka Moments Well-Known Member Silver Stacker

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    All Labors fault for not jacking up prices earlier, thus squandering the Country's wealth from the mining boom. :ss:
     
  16. Eureka Moments

    Eureka Moments Well-Known Member Silver Stacker

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    Now $1.00 at Shell servos. :/
     
  17. AngloSaxon

    AngloSaxon Active Member

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    Babylove Nappies. The least worst alternative to the market leading nappies.

    Walker size, 12-17kg toddler. They just changed the box design. Suddenly that size goes from 72 to 66 per box. Same price. They just crossed the line from an acceptable buy to an unacceptable buy. Back to the market leading brand.
     
  18. willrocks

    willrocks Well-Known Member Silver Stacker

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    Potty training. Priceless.
     
  19. AngloSaxon

    AngloSaxon Active Member

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    We would LOVE for that to catch on. So far, limited interest.
     
  20. ShinyStuff

    ShinyStuff New Member

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    these are now $1 each ALL DAY EVERY DAY in the NSW Illawarra. $2 is way too much for them!

    Shiny
     

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