Department stores have been reducing the price of high end designer clothing.That means you could buy a pair of slacks for $500.00 and two weeks later, it could be on sale for $150.00. That makes people who are slaves to designer clothing pretty upset.
The designers aren't much happier either. They have no control over when the item goes on sale or which items. Some designers are looking at renting space at department stores so that way they control their destiny.
What does that mean for the consumer? Artificially high prices continue?
**picture from http://cityfile.com/dailyfile/5370
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It's deflation: the decrease, over time, in the price of goods. In deflation, people buy less even though goods get cheaper. That's because people figure that if they wait just a little longer, they'll be able to buy the goods they want for less. In the end, people buy less, consume less, which is bad for the economy.
ReplyDeleteDeflation is bad for the world's economy, but may be better for our land fills and credit cards.
ReplyDelete