Quote:
Originally Posted by molson
I don't believe there was a magical time when companies priced products cheaper even though people would happily pay more for just as much of the same thing.
Consumer spending has kept everything afloat, but, that won't last forever.
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There wasn't. But no one was going to run up the price while the competition didn't for fear of losing market share. The inflation run allowed companies cover to run prices up and see how much the market actually will bear. Now, no one wants to be the first to give up that sweet, sweet profit margin. I mean Coke openly admitted that is what they are doing in their latest shareholder meeting, and Pepsi said in theirs that they feel they still have room to increase prices/profit margins in the coming year. Unless people stop buying in bulk, they aren't dropping prices. The people are getting hurt by it the most are consumers, and they seem to be only placing the blame on Washington. Corporations continue to cash in.