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Do you guys think if the tariffs go down we’ll eve...
# random
t
Do you guys think if the tariffs go down we’ll eventually see prices for groceries and goods drop?
g
Not a chance, prices only ever go up, there is no incentive for them to go back down once they realize people will pay regardless
n
In theory, that shouldn't be true in a free market. Never studied the reality, so I can't argue. Why don't free market economics hold here?
t
Not enough competition?
My gut tells me that yes, there is no incentive for prices to go down once they’ve learned people will tolerate them.
I don’t see how someone will be able to start a business that competes with other major retailers well enough to offer the goods at a lower price
n
Why wouldn't e.g. Amazon undercut Walmart and target (also examples) and get more sales? That's how free market works. The price settles at what the market can bear.
t
They might, but they will find a price point to undercut just enough to get the customers away from a competitor, but not enough to lower the price in any meaningful way for the customers
(I have found Walgreens to be way cheaper than all three of those for a lot of household items though)
n
But then Walmart and Target will respond in kind, and so it should continue until the price settles
t
I think they would collude. I know it’s supposed to be illegal. Or the downward pressure feedback loop will not be quick enough to make a difference.
Obviously, that is not the right economic term…
Although I hope I’m wrong, because this is upsetting:
n
Buy store brands Great Value, Up&Up, Market Pantry Mostly great products for much cheaper and if it's not good, they take it back without complaint
t
Oh I always do, but that just made my eyes pop.
w
I've absolutely seen prices go down in many places. It's more likely to occur at Big box stores first and then trickle down to the local supermarkets that feel the competition.
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