I came across an interesting article today on one of Japan's most serious problems: deflation. http://www.nytimes.com/2010/01/30/business/global/30deflation.html?pagewanted=1&sq=economics&st=cse&scp=6
There were several things in this article that struck me. notice the caption under the tiny picture on the left. It reads "Shokuan, which has vending machines but no table service, is an inexpensive place to eat."
I got to thinking about how businesses just keep trying to find more and more ways to cut costs. At Shokuan, the owners pay for a vending machine instead of paying a worker to serve food. At what point will business owners need to make a conscious decision to employ people rather than go with the impersonal yet inexpensive alternative?
Another thing that caught my attention (partially because my last post was on economics and happiness) was this quote:
"When you buy something cheap, you lower the value of your own life."
What do you think of this?
Another part in the article mentions that these lower prices are "good for households."
While deflation may help out households in certain areas, falling wages are also characteristic of deflation.
What are your thoughts on any of these points, or on the article in general?
Yes lower prices are good for families and yes that does bring falling wages so it leaves them at the same proportion of money spent on these objects roughly. I don't think that buying cheaper goods diminishes your value of your life because you could be saving for something better.
ReplyDeleteCheaper items might help households in the short run, but it might hurt them after a while. The stores are cutting down on hiring people in order to make prices more affordable (replacing workers with vending machines, etc); this means that less people will get jobs. This would definetly have a negative effect on the economy.
ReplyDeleteI disagree with the idea the article presented that said buying cheap goods lowers the value of your life. I can see where the concept comes from, but I think a family getting by on very little is actually increasing the value of their life by purchasing off-brand goods or bargain hunting because it increases their consumer surplus. And as we learned, more consumer surplus equals happier consumers in the eyes of economists.
ReplyDeleteI agree with Bridgett. If you can thrift clothes or furniture and be conscious of how you use your money (purchase inferior goods), you can save enough to afford something that will be sustainably beneficial (ex.: a hybrid car, solar panel roofs). Not only will this be good for the Earth, it will be good for your bank account. T
ReplyDelete"When you buy something cheap, you lower the value of your own life."
ReplyDeletei disagree with this statement, buy cheap goods doesn't equal to lower the value of people's life.
People are prefer shopping at those stores on sale, the same quality as before, the cheaper price for consumers. Also I think we may only save a little bit a day when we purchasing goods from the market, but those "little bit savings" would finally become a big amount money someday int he future, and it actually provide chances to raise their value of life.
I think it all really just comes down to what the consumer wants. I mean if he/she wants to buy caviar from the back of a car and is fine with it then so be it. While if another person wants to buy a $40000 wine bottle because he or she thinks buying anything cheaper "diminishes" their life-style, again so be it. I mean I don't think I"m one to say what does and does not lower the value of someone others life. It is what they want to do with their money.
ReplyDeleteT
Well I am a total bargain shopper...with anything, from clothes to food to whatever. I really don't think that getting the most for your money is lowering the value of a person's life. Sure, it is nice to have expensive things, but a shirt from Kohls is just as good as a shirt from hollister and very few people even care where your shirt is from. So, while that saying may sound good on paper I, personally, think its a load of crap.
ReplyDeleteI feel that lower prices on goods well help families in the short run and the long run. This is because of the fact that they will be saving a lot of money. Having more money can help families in this economic crisis that we are in. Any little bit can help, and in this case this little bit will compound greatly.
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