Why is an economic depression bad for consumers even though prices are cheaper?
In: 88
Prices only go down when demand is massively reduced, usually because tons and tons of people lost their job.
If there’s a small drop in demand, margins are thick enough that the company can face tank the hit, waiting for the market to go back up. They don’t want to give people the impression that X product should get to be a reasonable price after all. So if they lower the prices it means that they aren’t making any money and don’t see it changing any time soon. Which means that the 10c less that the item costs probably doesn’t make up for the fact that you lost your job and can’t find another one.
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