Quote:
Originally Posted by iggy_oi
So if no one can afford anything businesses will raise their costs indefinitely to maintain their profits? And you think that will work? In your view there is no possibility of them reducing the prices of their goods and services to keep their business afloat? Because if I look around currently, a lot of things are a lot cheaper now than they were in boom times.
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It's not impossible, but when money gets tighter, brand trust starts to become more important to customers. Once a business reduces their prices it's very tough to raise them again. The expectation is that prices are too high if they ever do so. If they panic and lower prices it can have serious negative effects in the long term.
Do you have some examples of things that are cheaper now? I can't think of many personally.