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aether wrote:
>>>>No one is defending a particular price. They're simply pointing out
>
> your
> lack of understanding about markets.<<<
>
> I've read the responses, all of them. I understand everything that's
> been said.
Apparently not.
> I'm telling you the prices created by this market are
> outrageous,
You seem to think that just because you don't like 'prices' then that's
'proof' of something, but it's not. Other than you don't like prices.
> and it shows no sign of letting up. Prices continue to
> increase.
Maybe they should. Where is it written that things should be priced just to
suit YOU?
> The increases in the price of memory have been steady for the
> past five years.
Your 'solutions' are fly off the handle and shoot self in foot kind of
things. Flood the market, flood the market, cheap, cheap... yeah yeah.
Which also puts companies out of business and people out of work.
Things were real damn cheap during the Depression too but I hardly think of
that as a 'solution' to anything.
Let me pose a hypothetical example to illustrate how simplistic and short
sighted your 'outrage' is. A plant that makes memory chips can also make
other kinds of chips; say chips for cell phones. Cell phone market
increases and plant can make money with cell phone chips, which is a good
thing because people like to buy cell phones. Increase in cell phone chip
production lowers cell phone pricing but increases memory pricing because
that production is lowered from the shift to cell phone chips. You scream
about memory prices, force people to make more memory chips to satisfy your
'outrage', and cell phone prices increase because of the reverse shift in
production you forced. So now you scream about cell phone prices and want
to force more things, which screws up something else which you, of course,
scream about.
Meanwhile, if you were actually able to forces these things, you'd be
destroying the capital for plant expansion and product development, running
companies out of business, and putting people out of work. And out of work
people have a hard time buying things even at 'non outrageous' prices so
volume decreases and cost per unit goes up, which causes more layoffs, or
wage deflation, and a raft full of other equally undesirable consequences.
On the other hand, if prices really are 'outrageous' then someone will get
the bright idea to make money by selling into that market, by either a
production shift or the building of new plants, at a lower price and reap
profits from the volume. And if they try to make 'too much' profit someone
else will undercut them to take market share. That is, until the price
drops so low that the next guy decides he can make more money in the cell
phone market rather than make memory chips. Which is a good thing because
we don't want super expensive cell phones, now do we? Or maybe they'll make
GPS chips because, after all, we don't want 'outrageous' GPS prices either.
Or maybe they'll make GPU chips. Or maybe the investor will say to hell
with the volatile, low profit, chip industry and invest in geothermal home
heating units, or party balloons, or who the hell knows what? But, whatever
it is, I'm sure you don't want 'outrageous' prices there either so it's a
good thing someone is investing in it.
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