Re: Throwing away produce

[20000miles]

Continued from here: http://www.politics.ie/chat/36694-qu...ml#post1262000

Simply not true, capitalists will not reduce prices just as the commodity is about to exceed it's use. If this was the case everyone would wait for the commodity to be de-valued and profit would be reduced. The capitalist would rather sell 70% at full value and waste 30% than sell the remaining comodities on cheap as this would devalue their commodities in future.

Of course they do! They're called sales!

People generally prefer goods in the present to goods in the future. It's called time-preference.

Also, do you really believe that the firm would rather throw away products that to sell them at a lower price? Even below cost price? They are chasing them profits after all!

A profiteer will do whatever is most profitable. If they can sell sub-standard and harmful produce to make a profit they will. Only if the repercussions of selling faulty produce will harm profits will they not sell the faulty produce.

And would you continue to buy these products? Would you tell your friends and family to buy these goods?

As I have pointed out, there is no choice when our taxes are used to fund government projects. Public schools, hospitals and police are all rubbish.

Food produce is the most obvious example. In McDonalds will they sell a big mac for less than the named price if it was sitting idle for 20 minutes? No they would destroy it by throwing it away. Have you ever been offered a big mac at a lower price than advertised? There are many cases where capitalists will defend their brands by destroying produce. To sell say a Tommy Hilfigure brand at €10 would de-value the whole brand and make peope weary of paying full price for future stock. They would rather destroy it.

And the whole point you're missing is that these firms are in ruthless competition with other firms. Do you believe that a company can constantly overestimate the amount of produce it can sell and still survive in the marketplace.

Capitalists will consult elasticity of demand and then decide if produce should be destroyed. In your beloved free market would there be laws against destroying produce?

Just like there would be no laws against destroying individual property, there shouldn't be any against destroying "company-owned" goods and capital.


But why would they? MARKETS CLEAR.

[20000miles]

*Bumps thread up to the top*

Any answers? Anyone?

[fionnmccool]

Of course they do! They're called sales!

Well arent there brand names like 'Baileys' Irish Cream' which basically charge a premium price over and above the cost of production and this price basically supports the exclusive image of the brand ? In which case having a sale at significant discounts would be seen as damaging the brand and hence future profitability ?
Isnt' the Waterford Crystal brand kind of similar to this with significant opposition to discounting no matter how financially in trouble the company is ?

Just like there would be no laws against destroying individual property, there shouldn't be any against destroying "company-owned" goods and capital.


But why would they? MARKETS CLEAR.

You mean like the EU Butter mountain, Wine lake etc ?

[Odyessus]

Well arent there brand names like 'Baileys' Irish Cream' which basically charge a premium price over and above the cost of production and this price basically supports the exclusive image of the brand ? In which case having a sale at significant discounts would be seen as damaging the brand and hence future profitability ?
Isnt' the Waterford Crystal brand kind of similar to this with significant opposition to discounting no matter how financially in trouble the company is ?







You mean like the EU Butter mountain, Wine lake etc ?

There is not a free market in these goods in Europe.


If you have an interest in economic matters, why not take the trouble to acquaint yourself with the basics before engaging in discussion?

[CookieMonster]

Dunno about you but I often sweep up cakes and bread in Tesco late in the evening, which are due to reach their sell by date. Mmmmm cake.

[20000miles]

Well arent there brand names like 'Baileys' Irish Cream' which basically charge a premium price over and above the cost of production and this price basically supports the exclusive image of the brand ? In which case having a sale at significant discounts would be seen as damaging the brand and hence future profitability ?
Isnt' the Waterford Crystal brand kind of similar to this with significant opposition to discounting no matter how financially in trouble the company is ?

So no rampant widescale destruction of consumer goods then. Also, you have fallen into the trap of thinking that firms are price-setters rather than price takers.

Also, what others are arguing is that firms are greedy, selfish entities, but can somehow constantly miscalculate how much to produce.

Logic, disconnect.

[fionnmccool]

There is not a free market in these goods in Europe.


If you have an interest in economic matters, why not take the trouble to acquaint yourself with the basics before engaging in discussion?

I have never claimed anywhere to have anything but a laymans view of anything apart from engineering. Hey I dont' know; even maybe this site is only really most useful for people who have studied politics, history or economics. But hey feel free to educate me if you have the time or inclination. Otherwise thanks for the feedback.

So no rampant widescale destruction of consumer goods then. Also, you have fallen into the trap of thinking that firms are price-setters rather than price takers.

Also, what others are arguing is that firms are greedy, selfish entities, but can somehow constantly miscalculate how much to produce.

Logic, disconnect.

Well I'm not sure what you mean because isnt it obvious that firms take the strategy they believe will earn them the most money ? Theres a lot of behaviour which appears illogical to me on a lot of levels for example why does the government hold onto voting machines and pay a lot of money (from the point of view of the ordinary salaryman) for the storage of same if they dont intend to use them at some point ?

[Odyessus]

I have never claimed anywhere to have anything but a laymans view of anything apart from engineering. Hey I dont' know; even maybe this site is only really most useful for people who have studied politics, history or economics. But hey feel free to educate me if you have the time or inclination. Otherwise thanks for the feedback.





Well I'm not sure what you mean because isnt it obvious that firms take the strategy they believe will earn them the most money ? Theres a lot of behaviour which appears illogical to me on a lot of levels for example why does the government hold onto voting machines and pay a lot of money (from the point of view of the ordinary salaryman) for the storage of same if they dont intend to use them at some point ?

The actions of governments are not dictated by market principles.