Are hot deals hurting our economy?

[gwlam12]

I was just sitting here thinking...if our economy is going down right now...and some of our hot deals cause companies to lose money (like the ones where we use coupons for the FAR items)...are we hurting our economy?

 

[Imported]

No. They encourage shoppers to shop.

 

[tcsenter]

Nahh. If given the option between moving no product at no revenue, and moving a lot of product at break-even revenues, chose B. It keeps people working and the company afloat, albiet just barely.

 

[Siddhartha]

Deflation is bad for an economy. With lower prices you get lower profits which mean companies laying people off or going out of business.

 

[tcsenter]

Deflation is bad for an economy. With lower prices you get lower profits which mean companies laying people off or going out of business.

Not when companies are lowering prices to try and maintain sales. In this particular case, the bad economy is driving deflation, not vice versa. The only alternative to limping along wounded is to lay down and die.

 

[Aceshigh]

Originally posted by: tcsenter
Nahh. If given the option between moving no product at no revenue, and moving a lot of product at break-even revenues, chose B. It keeps people working and the company afloat, albiet just barely.

 

[MadRat]

We have a severe overproduction of goods right now hitting the distribution chutes. There is no shortage of customers nor product, only profit.

Its a direct byproduct of job cuts in the areas of corporate accountability. Everytime you hear about IT, contracts, and accounting groups getting the axe this stuff happens. Sadly, some of the really large corporations are alot closer to the breaking point then they are letting on. The dirty little secret in America is that you can squeeze blood from a turnip. The only reason some of these companies can fester so long is because they still have people that care.

Ghosts of the Soviet collapse of 1990, welcome to America.

 

[Zugzwang152]

increased cash flow is always good for the economy, even if hurts individual companies who sell at losses sometimes.

 

[MadRat]

Originally posted by: Zugzwang152
increased cash flow is always good for the economy, even if hurts individual companies who sell at losses sometimes.

No, its not a good thing. The excess product being made hurt the economy in multiple ways. Selling the excess for less price than its worth steals resources where they should have been directed. The resources from which that product was made has been drained off of other industries that may have been able to use the resources, artificially raising the production cost for these resources.

 

[Pliablemoose]

<=== Ferengi in my spare time, but I know I'm an opportunist.

Deflation is the economics term or the day:

deflation
A decline in general price levels, often caused by a reduction in the supply of money or credit. Deflation can also be brought about by direct contractions in spending, either in the form of a reduction in government spending, personal spending or investment spending. Deflation has often had the side effect of increasing unemployment in an economy, since the process often leads to a lower level of demand in the economy. opposite of inflation.

It's not that bargain hunters are causing the deflation, but that bargain hunters are aided by deflationary spirals.

 

[BaliBabyDoc]

The excess product being made hurt the economy in multiple ways. Selling the excess for less price than its worth steals resources where they should have been directed. The resources from which that product was made has been drained off of other industries that may have been able to use the resources, artificially raising the production cost for these resources.

Hello Asian Flu!

 

[BDawg]

Rossman himself has cost over 2 million American workers their jobs.

 

[FeathersMcGraw]

Originally posted by: gwlam12
I was just sitting here thinking...if our economy is going down right now...and some of our hot deals cause companies to lose money (like the ones where we use coupons for the FAR items)...are we hurting our economy?

Only if the people offering the deals never took Economics 101 and don't understand the Laffer curve.

 

[Zugzwang152]

Originally posted by: BDawg
Rossman himself has cost over 2 million American workers their jobs.

all hail the grand nagus

 

[tarheelmm]

Any spending of money is good spending of money

 

[Analog]

Originally posted by: Imported
No. They encourage shoppers to shop.

ditto.

 

[Zugzwang152]

Originally posted by: tarheelmm
Any spending of money is good spending of money

my opinion as well. cash flow is good.

 

[Ausm]

Originally posted by: Imported
No. They encourage shoppers to shop.

I agree with the obvious.


Ausm

 

[RossMAN]

Originally posted by: Zugzwang152

Originally posted by: BDawg
Rossman himself has cost over 2 million American workers their jobs.

all hail the grand nagus

but I have helped the credit card companies reap in massive profits $$$$

 

[iamme]

If you're referring to the Hot Deals forum, FW, and other internet "deals" sites.....you have to remember we are a small percentage compared to those who buy retail *shudder*.

 

[Blain]

"Are hot deals hurting our economy?"

NO... they are just thinning the heard!
We rode Value America for as long as THEY dished out their "Value Dollars". It's capitalistic darwinism at its finest, and HOW SWEET IT WAS.

 

[tcsenter]

We have a severe overproduction of goods right now hitting the distribution chutes. There is no shortage of customers nor product, only profit.

No shortage of customers, but a shortage of customers with money to buy goods. The only measure a company can take to counter overproduction is to decrease production, but in order to do so without increasing their prices they must slash jobs (expenses). What companies are doing now they do for survival purposes, hoping they will be around long enough to see the economy pick up.

 

[0roo0roo]

mr ups man and fed ex man are kept busy, which in turn keeps a lot of other people busy

 

[gwlam12]

Originally posted by: iamme
If you're referring to the Hot Deals forum, FW, and other internet "deals" sites.....you have to remember we are a small percentage compared to those who buy retail *shudder*.

Yea, but we're small enough to cause items to go out of stock nationwide!

And I would like to point out those deals where people get stuff for free after rebates and coupons, and also those where we actually receive money after coupons and rebates.

 

[shiner]

Yes, if you buy hot deals you support terrorism.