Legality, Economy and Price

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It been a while that a was looking into this when I was away in China and got a girlfriend in Shanghai, after a few date out and such, I was wondering a lot, are we human stupid? Why do we accept mark up price sometimes so high it not even logic that people are spending money for it.
So I was wondering, at what point can we accept and it "legal" that a place can mark up a price so high? seem like there is no limit.

Here a simple example
Got into a tea shop, on a very high commercial street, price of one cup of tea were going about 10-12$ a cup, I was quite shocked. People willingly don't even think and a ready to pay 3 to 4 times a more "normal" price? But this was "normal" for them, a lot of the store in that area were crazy marked up because it was very high density and I guess that place was "special"

Anyway, back in Canada now, I normally always look at price of thing I buy, mostly I have the grocery price in my mind to see the difference from place to place, I don't mind if a convenience store offer the same object for a few pennies more, but I find it ridiculous when it 1 or 2 dollars more.
I mean, this is simple, why would you pay say, 3,50$ for a bottle of drink if like not even 2-3 minutes walk away you can get the exact same object at the grocery for less than 2$? How does this make any sense to anyone willing to pay the higher price? Both have similar open hours and even sometimes the grocery have wider range of hour compare to this rando X person convenience store.
How is this even legal? just because we said so? just because people buy it?
And please don't say "people need to make money", so you willing to be basically scammed up just so another person can make money? This can apply to a lot of thing you get, usually from serviced place such as coffee shops

all I want to say after that is simple, stop buying without looking and don't be an idiot, be careful of your money and don't spend carelessly!
Wake up :)
Just my 2 cents

Convenience, mostly. If they had to sell at grocery store markups, most places couldn't afford to even offer drinks and snacks.

I'm almost sure this should be at R&P.

Anyway, you can point out a lot of motives for people paying more for the same product, but I think main one is convenience (not everyone puts frugality as their #1 objective, and prefer to use their money to save time or effort). Besides, because of free market, as long as competitors offering lower priced stuff exist, it won't be illegal to rise the price.

You should see the price of stuff in Brazil.

So what did getting the girlfriend have to do with the rest of the thread? I was kind of expecting to read that you bought her or something.

Drathnoxis:
So what did getting the girlfriend have to do with the rest of the thread? I was kind of expecting to read that you bought her or something.

Love over the hatred of Capitalism.

Yeah I was waiting for a "she wasn't impressed because I wouldn't buy her a $12 cup of tea but it's not me it's Capitalism that's bad" kind of deal.

Basically people will charge as high as they possibly can if people still willingly pay that price. And you must never underestimate the power of human laziness. Junk food and Streaming services would have never existed if people weren't so lazy.

wait, is this about buying a girlfriend from Shanghai? errm

just be poor, it's far easier to not spend on pointlessly expensive goods that way (or... overseas girlfriends?). of course life becomes a living nightmare, but life is generally a living nightmare anyway. or maybe I'm projecting a bit there, oh well, got nought better to do. even a broken idiot projects correctly twice a day, or something like that. some life affirming advice right there btw...how much is it worth? I probably shouldn't have typed it all out publicly first. fuck. no wonder I'm poor. alright, it's free now, through choice of course. just your friendly neighborhood philanthropist peasant!

Pyrian:
Convenience, mostly. If they had to sell at grocery store markups, most places couldn't afford to even offer drinks and snacks.

"Convenience" : which convenience exactly? they don't have better open hour or prize, so unless you are ridiculously lazy by not walking less than 2 minutes and willing to pay 1,50 more dollar!? I dont get people.

"If they had to sell at grocery store markups, most places couldn't afford to even offer drinks and snacks"
Well how is that MY problem? everyone everywhere in life need to make money, that doesn't allow you to basically "scam" me

Squilookle:
Yeah I was waiting for a "she wasn't impressed because I wouldn't buy her a $12 cup of tea but it's not me it's Capitalism that's bad" kind of deal.

Basically people will charge as high as they possibly can if people still willingly pay that price. And you must never underestimate the power of human laziness. Junk food and Streaming services would have never existed if people weren't so lazy.

"Basically people will charge as high as they possibly can if people still willingly pay that price."
Yeah and that sad because they no legal limit, people are ridiculously stupid then, willing to pay 5-6$ for soft drink on tap in bar, how is that "legal" to basically sell stuff that is worth penny... I will never understand people then
let not talk about anything "luxury" brand just because of "I want to pay higher price because I don't want rando person X to be able to have it so easily", you must be rather very high egotistic narcissic human.

The worst is when I see basically all store proudly show "Sale" 100% of the time, and the the sale is based of the super jacked up price to make you think it a sale.
Like I seen stuff on sale on a Shirt "Original price 200$, Sale price: 80$" 20$ is already stupidly a high price for a damn shirt, 80$ is NOT a sale price... come on

*sigh*

It's just supply and demand. If people are willing to pay those prices, then the shops will stay in business. In the case of a cafe, higher prices are expected since the volume of sales is likely to be lower compared to a shop where many customers will be buying basketfuls of groceries, meaning higher prices will be needed to cover the standard overheads like rent and wages. Remember that you aren't just paying for the drink itself -- you're paying for the upkeep of the building, the staff who serve there, any business taxes etc.

But I agree with your point on budgeting. If you're looking to save money, then keeping eating out as a rare treat is an easy way to cut costs.

Siyano:

Squilookle:
Yeah I was waiting for a "she wasn't impressed because I wouldn't buy her a $12 cup of tea but it's not me it's Capitalism that's bad" kind of deal.

Basically people will charge as high as they possibly can if people still willingly pay that price. And you must never underestimate the power of human laziness. Junk food and Streaming services would have never existed if people weren't so lazy.

"Basically people will charge as high as they possibly can if people still willingly pay that price."
Yeah and that sad because they no legal limit, people are ridiculously stupid then, willing to pay 5-6$ for soft drink on tap in bar, how is that "legal" to basically sell stuff that is worth penny... I will never understand people then
let not talk about anything "luxury" brand just because of "I want to pay higher price because I don't want rando person X to be able to have it so easily", you must be rather very high egotistic narcissic human.

The worst is when I see basically all store proudly show "Sale" 100% of the time, and the the sale is based of the super jacked up price to make you think it a sale.
Like I seen stuff on sale on a Shirt "Original price 200$, Sale price: 80$" 20$ is already stupidly a high price for a damn shirt, 80$ is NOT a sale price... come on

*sigh*

Dude calm down- I never said I would buy something just because someone else couldn't have it. And if you want to know how it is legal, it's because... there is no law against it. Simple as that.

Siyano:

How is this even legal? just because we said so? just because people buy it?

Siyano:

Yeah and that sad because they no legal limit, people are ridiculously stupid then, willing to pay 5-6$ for soft drink on tap in bar, how is that "legal" to basically sell stuff that is worth penny... I will never understand people then

Question is, why would it be illegal? People are willing to pay for it out of laziness when it's so simple to go elsewhere, so why restrict it?

The worst is when I see basically all store proudly show "Sale" 100% of the time, and the the sale is based of the super jacked up price to make you think it a sale.
Like I seen stuff on sale on a Shirt "Original price 200$, Sale price: 80$" 20$ is already stupidly a high price for a damn shirt, 80$ is NOT a sale price... come on

*sigh*

Welcome to my local Dollar General, except it's not anywhere near that jacked in price. I live in the middle of nowhere, and some of the sale prices on the items there match the Walmart that is quite a ways away. Considering the logistical inconvenience, I'm more than happy to pay a bit extra so I can walk instead of dedicate a few hours to taking a bus or a bunch of money in gas, just to get a late-night snack or some catfood. It helps that the prices are actually a fair markup, and not insanely jacked up like your example, however. Their MicroSD card prices suck though, along with most of the electronics they stock, prices or otherwise.

Siyano:
"Convenience" : which convenience exactly? they don't have better open hour or prize, so unless you are ridiculously lazy by not walking less than 2 minutes and willing to pay 1,50 more dollar!? I dont get people.

2 minutes of my time costs just over $1.50. Not really my thing, honestly, but time is valuable. And it's more valuable to some people than to others. You really should wrap your head around that concept.

Siyano:
"If they had to sell at grocery store markups, most places couldn't afford to even offer drinks and snacks"
Well how is that MY problem? everyone everywhere in life need to make money, that doesn't allow you to basically "scam" me

They're not forcing you to buy it. They're not tricking you into buying. It's not your problem unless you make it your problem, and it's not a scam unless you're fooling yourself.

Instead, here you are trying to make your issue a problem for other people. Because the options aren't "reasonable price here" vs "higher price here", it's "unavailable here" vs "higher price here". And making it just unavailable doesn't help anyone. You're given the responsibility to make your own decision as to whether the higher price is worth it to you. Clearly it isn't, which shouldn't be a problem for you, but you don't have to go and make that somebody else's problem.

Or are we really having this conversation because you DO want your convenience, you just don't want to PAY for it?

Siyano:

Yeah and that sad because they no legal limit, people are ridiculously stupid then, willing to pay 5-6$ for soft drink on tap in bar, how is that "legal" to basically sell stuff that is worth penny...

After getting their drink at the bar, what do people do?

well, people say, price is depending on what are people willing to pay, but people are "stupid", just because a few bunch of people dont care, dont mind, dont know, pay 15$ for a 1$ product when you could have paid 5$, so I have to pay that higher marker up for the general mass.

"They're not forcing you to buy it. They're not tricking you into buying"
I never said I was, but when you are out with friend in a public cafe or such, it suck that you pay overprice drinks because you are somewhat "pressured" of buying stuff because you are using the space.

It my issue for other people too, I dont want other people to stupidly waste money on "nothing" other than a morally gray area of marked up price for profit, I guess that a too big endeavor

"After getting their drink at the bar, what do people do?"
What does the price of a drink have to do with that?

I guess I'm the only one thinking it morally wrong to sell 6-7$ drinks when it obviously 1$ (like in bars or sport center and such)

Siyano:

"After getting their drink at the bar, what do people do?"
What does the price of a drink have to do with that?

I guess I'm the only one thinking it morally wrong to sell 6-7$ drinks when it obviously 1$ (like in bars or sport center and such)

It matters because a bar or lounge will generally provide a pleasant atmosphere, dancing area or other activity that it doesn't charge for. Instead they rely on people ordering drinks, snacks, food or other entertainment (dart boards etc.) that people will pay money for and jack up the prices to cover the expenses for all the things they provide for free.

It is hardly immoral. If you don't want to pay three or four times more for a beer or coffee, stay at home and drink. But the people at your coffee shop or bar needs to make a living too and they do it by charging extra for some products while providing other activities for free.

Siyano:

"After getting their drink at the bar, what do people do?"
What does the price of a drink have to do with that?

Everything. Just as Gethsemani said.

Gethsemani:

It matters because a bar or lounge will generally provide a pleasant atmosphere, dancing area or other activity that it doesn't charge for. Instead they rely on people ordering drinks, snacks, food or other entertainment (dart boards etc.) that people will pay money for and jack up the prices to cover the expenses for all the things they provide for free.

If you think it's immoral, then make yourself a moral business that offers cheap drinks and good service.

Wintermute:
You should see the price of stuff in Brazil.

Or Argentina.

I know it been two month but I had to come back to this topic.
So "Question is, why would it be illegal? People are willing to pay for it out of laziness when it's so simple to go elsewhere, so why restrict it?"
As long has people for it, it not illegal right? so where does this stop? if people buy bottle water for 100$ it still ok as long as I have people that pay for it? How about 1000$ 1 millions?
I mean is life all about how you can "scam" someone to the highest and still be legal?
And let not talk about dozen of "job" where it basically there to "scam" you out of money. Astrologer, psychic, homeopathy, lottery. So even thought we know those doesnt add anything of value we stil allow them.
Ok then I will become a psychic, please send me 100$ and I will give you good fortune and good health....

Also really recently there more and more foreigner coming and installing themself and since a lot of them seem to be more "rich" and are able to spend more they are making the general price of object pricer for the local. So how exactly do you establish "what a person can pay" since a person coming from outside is money may be worth more or he got richer in a country that was "easy" to get rich, and then now spending without really looking for those object that are pricier.
It happened a lot for renting appartment in the recent years.
So now I have to pay higher price because of those people can pay higher? How is that fair?

Siyano:

As long has people for it, it not illegal right? so where does this stop? if people buy bottle water for 100$ it still ok as long as I have people that pay for it? How about 1000$ 1 millions?

Is the buyer happy with their purchase of 100 USD "Norwegian Glacier Ice"-ice cubes (real thing, by the way)? If so, what's the problem? Exclusivity is a part of the appeal of many high end or luxury products and services, which is why a pair of slacks marked with Gucci will set you back 300 USD instead of 30 for Walmart's Finest. As long as I am ready to pay 300 USD to get a really exclusive pair of slacks and you can find a pair of bargain bin 10 USD slacks, what's the problem?

Siyano:

And let not talk about dozen of "job" where it basically there to "scam" you out of money. Astrologer, psychic, homeopathy, lottery. So even thought we know those doesnt add anything of value we stil allow them.

Peace of mind and the placebo effect are both real and have value. If you need to pay someone a hundred bucks to hear them say that your mother is at peace now that she's dead and that makes you sleep better, is it better or worse then paying a hundred bucks over the course of a year to get sleeping pills? A lottery can provide you with a sense of thrill and excitement, so how is that worse then paying to go on a rollercoaster ride?

Where this ends, obviously, is when the hoax is detrimental to your health. A homeopath that tells you to take more salvia-infused water to battle your cancer instead of seeing an oncologist should be driven out of town. A casino that lets you gamble away every last thing you own should not have a license. But if you think you feel better when you drink "gold infusions" to get more energy or have a great time while gambling responsibly at a casino, what's the harm?

Siyano:
I mean is life all about how you can "scam" someone to the highest and still be legal?

Capitalism, especially with luxury goods, generally is, yes. Life in general, no, unless you're a hardcore capitalist.

Siyano:
So now I have to pay higher price because of those people can pay higher? How is that fair?

Who said it was fair? People will charge what they like, usually as high as they can, unless someone else prevents them. Often, this is considered very unfair, tied closely with poverty.

Very hard for society to stop that, even assuming the government wants to and isn't in on it. People have been trying for thousands of years, limited success. Normally when there's some emergency like a war and worries about war profiteers. During the Peloponesian War, in Athens you couldn't sell grain at a price more than one obol per phormos you bought it, or you faced the death penalty, for example.

Gethsemani:
If you need to pay someone a hundred bucks to hear them say that your mother is at peace now that she's dead and that makes you sleep better, is it better or worse then paying a hundred bucks over the course of a year to get sleeping pills? A lottery can provide you with a sense of thrill and excitement, so how is that worse then paying to go on a rollercoaster ride?

The former implies deceit, though, the latter should be transparent.

Gethsemani:

Is the buyer happy with their purchase of 100 USD "Norwegian Glacier Ice"-ice cubes (real thing, by the way)? If so, what's the problem? Exclusivity is a part of the appeal of many high end or luxury products and services, which is why a pair of slacks marked with Gucci will set you back 300 USD instead of 30 for Walmart's Finest. As long as I am ready to pay 300 USD to get a really exclusive pair of slacks and you can find a pair of bargain bin 10 USD slacks, what's the problem?

The problem is why are you paying 300$ if you can pay 10 or 15$, if in the end it the same object or close?

Peace of mind and the placebo effect are both real and have value. What? Placebo may be real, so? I dont see how it can have value, it called placebo for a reason, having effect on nothing, like drinking water and thinking it energize you.

If you need to pay someone a hundred bucks to hear them say that your mother is at peace now that she's dead and that makes you sleep better, is it better or worse then paying a hundred bucks over the course of a year to get sleeping pills? hmm, well, in one a person is paying for being lied too?!

A lottery can provide you with a sense of thrill and excitement, so how is that worse then paying to go on a rollercoaster ride? Lottery is false, easy.

Gethsemani:

Where this ends, obviously, is when the hoax is detrimental to your health. A homeopath that tells you to take more salvia-infused water to battle your cancer instead of seeing an oncologist should be driven out of town. A casino that lets you gamble away every last thing you own should not have a license. But if you think you feel better when you drink "gold infusions" to get more energy or have a great time while gambling responsibly at a casino, what's the harm?

Well then, it getting detrimental to my health, it hard to pay for the every day stuff because some people can pay more for it and for no reason. So, what exactly is this not a bad thing compare to any of these?
Anyway, I feel like there no way to change people mind on this and not to "stupidly" spend 1000$ just because it as a logo on it...

Wintermute:
You should see the price of stuff in Brazil.

Johnny Novgorod:

Wintermute:
You should see the price of stuff in Brazil.

Or Argentina.

Cuanto es?

You can vote to keep those foreigners out altogether, restrict their purchasing power, tax their purchases to fund public housing for citizens, force them to add their property as rent-controlled estates, force rent-control... these issues are something you can vote for, and if they are not topics of interest by your politicians, you can certainly campaign for them and convince them that it is. If you are convinced this is a major issue them I guarantee your demands will be backed by others who think similarly. If you can make your real-estate market untenable to invest in as a foreign investor, you will inevitably reduce these kinds of purchases and the prices will go down in time.

Chinese investors buy property in Canada because they need to hide their money in case the worst comes to PRC. You can address either issue - the PRC itself being an authoritarian communist state with free-trade zones which allow for small-time capitalists to thrive, but under the thumb of the party, or... be a nationalist and demand restrictions on foreign-nationals buying property.

Canada has one of the most inflated real-estate bubbles in the world, thanks in part to this issue. You can vote for someone who isn't an idiot that could address that.

You could also complain about mark-ups but forget to mention the actual issue you're discussing here.

People are very stupid, we also tend to think of things that are more expensive as having more value and will actually be suspicious of things that we think are cheaper then they should be. So sellers can actually be selling 2 of the same product but having one be more expensive then the other can actually make it sell better if the products look similar but different just enough.

Siyano:

The problem is why are you paying 300$ if you can pay 10 or 15$, if in the end it the same object or close?

They already told you: exclusivity for the rich. They do something similar with common cars versus luxury cars.

OP, it's a marketing strategy. I can't remember the name of it. Something akin to 'loss leader'.

The idea is you sell tobacco products and gasoline (usually at competitive prices), and lottery tickets (at the same state-mandated price) and hope that someone buys an additional item out of convenience. Like a doorbuster during black Friday.

On a related note, I'm the worst type of customer. I see a game or shiny new thing I want and...I wait. Sometimes two, three years, I'll just wait. If it goes down in price, I'll buy it. Otherwise it's no big deal to me to never buy it.

This is in stark contrast to how I used to be. Delayed gratification is an art form.

Worgen:
People are very stupid, we also tend to think of things that are more expensive as having more value and will actually be suspicious of things that we think are cheaper then they should be. So sellers can actually be selling 2 of the same product but having one be more expensive then the other can actually make it sell better if the products look similar but different just enough.

Warby Parker originally wanted to sell their eyeglass frames for $50, which would still have netted them a profit. As their business idea was originally created while the founders were attending business school, they approached their professor for guidance. He told them they had to charge more because people, for the most part, associate cost with value.

Frezzato:

Worgen:
People are very stupid, we also tend to think of things that are more expensive as having more value and will actually be suspicious of things that we think are cheaper then they should be. So sellers can actually be selling 2 of the same product but having one be more expensive then the other can actually make it sell better if the products look similar but different just enough.

Warby Parker originally wanted to sell their eyeglass frames for $50, which would still have netted them a profit. As their business idea was originally created while the founders were attending business school, they approached their professor for guidance. He told them they had to charge more because people, for the most part, associate cost with value.

Yeah, its the perception of value that really messes with our minds. Like, if we see two items that are the same price but one is on 'sale' from a higher price, we will probably go for the one on sale since we perceive that one as better and part of the problem is even if you know this is a thing, its hard to fight against.

There is generally a pretty large difference between what one would be willing to pay for a good or service absent any alternatives (especially obvious for something like a monopoly on food) and how much a producer would be willing to provide it for in the absence of any other bids. In many cases, participants in an economy are encouraged to take as much of that consumer/producer surplus for themselves as they can; in the example of a bar or restaurant (or most any retailer), the establishment can (and does) add substantially to the prices it could otherwise expect in a competitive marketplace by preventing competition on its premises.

Marik2:

Wintermute:
You should see the price of stuff in Brazil.

Johnny Novgorod:

Wintermute:
You should see the price of stuff in Brazil.

Or Argentina.

Cuanto es?

Everything's marked up by about 50% and nothing ever goes down in price.

I guess I just dont get how all this works really, I mean if we can up the price of a object every now and then, that company make more money, thus able to pay more for their employee and thus that employe can spen more on another object thus making that object cost more, etc.. this is a uphill spiral with no end, because where does it stop? when milk cost 1 millions and you average salary is 20 millions per hour?
Also the buying power we have today is way less than say 50 years ago, because well, the difference of "richier" people than poor, since poor people buy less they have a lower impact of the price of an object while richier people can spend without problem.

If you look at say http://www.mybudget360.com/wp-content/uploads/2015/08/cost-of-living-chart.jpg
You can clearly see, we have less money and everything cost more in general (except milk and egg)

Also that now money value is based of nothing, back then it was based of the value of gold but in today economy, nothing, totally abstract, so how exactly does this work? So my money as no value and the what I can pay for it is based on nothing, rather than just an somewhat average of the highest I can possibly do.
I guess it doesnt make sense to me...

Siyano:
I guess I just dont get how all this works really, I mean if we can up the price of a object every now and then, that company make more money, thus able to pay more for their employee and thus that employe can spen more on another object thus making that object cost more, etc.. this is a uphill spiral with no end, because where does it stop? when milk cost 1 millions and you average salary is 20 millions per hour?
Also the buying power we have today is way less than say 50 years ago, because well, the difference of "richier" people than poor, since poor people buy less they have a lower impact of the price of an object while richier people can spend without problem.

If you look at say http://www.mybudget360.com/wp-content/uploads/2015/08/cost-of-living-chart.jpg
You can clearly see, we have less money and everything cost more in general (except milk and egg)

Also that now money value is based of nothing, back then it was based of the value of gold but in today economy, nothing, totally abstract, so how exactly does this work? So my money as no value and the what I can pay for it is based on nothing, rather than just an somewhat average of the highest I can possibly do.
I guess it doesnt make sense to me...

It makes perfect sense, its just stupid and probably not sustainable. Companies will try and charge as much as they can for something while paying as little as they can for employees. Right now a company is much more responsible (couldn't think of the right word at the moment) to shareholders and investors then anyone else and both those groups want big short term increases in value and constant increases in value. But doing that means kinda ignoring your employees and even customers. We see this a lot with video games and how ea, activision, and other aaa companies behave with yearly sequels that are 'safe.'

Frezzato:
OP, it's a marketing strategy. I can't remember the name of it. Something akin to 'loss leader'.

The idea is you sell tobacco products and gasoline (usually at competitive prices), and lottery tickets (at the same state-mandated price) and hope that someone buys an additional item out of convenience. Like a doorbuster during black Friday.

On a related note, I'm the worst type of customer. I see a game or shiny new thing I want and...I wait. Sometimes two, three years, I'll just wait. If it goes down in price, I'll buy it. Otherwise it's no big deal to me to never buy it.

This is in stark contrast to how I used to be. Delayed gratification is an art form.

Is it really delayed gratification if you're okay with not getting it though? Like to me the delayed part would imply you're 100% sure you'll buy it one day, almost kinda regardless of price. But that you're okay with not having something says more 'wise spending and contentedness in missing out'
Yeah Bioshock 4 does look good, but its $1100 and requires you to sign away the rights to your blood and teeth. Sad I'll miss it, happy I'm not making that transaction.

I'm similar but I'll just never pay full price. Nothing, no game or experience, is ever worth the price marketers say it is. If a game is worth $60 to Steam, its only worth between $30-$45 to me. If it gets into that window and I wanted it, i'll get it.

Siyano:
I guess I just dont get how all this works really, I mean if we can up the price of a object every now and then, that company make more money, thus able to pay more for their employee and thus that employe can spen more on another object thus making that object cost more, etc.. this is a uphill spiral with no end, because where does it stop? when milk cost 1 millions and you average salary is 20 millions per hour?

Which milk brand? Your example only applies if only one milk brand is available (or all brands agree on not having different prices). A cheaper milk brand can make more profit than an expensive one by selling by volume. Maybe one individual can afford a $1 million milk, but $10 milk sold to 2 million people is more profitable. Besides, if no cheaper milk was available, no one would buy it, because people has more important needs than just milk.

However, you are into something when you ask where does it stop. It doesn't. Several countries do a dirty trick when it goes to far: to change to a new currency whose value is equal to 1,000 or 1,000,000 times to the older one. Mexico did that in the 90's after an economic crisis.

Siyano:
Also the buying power we have today is way less than say 50 years ago, because well, the difference of "richier" people than poor, since poor people buy less they have a lower impact of the price of an object while richier people can spend without problem.

If you look at say http://www.mybudget360.com/wp-content/uploads/2015/08/cost-of-living-chart.jpg
You can clearly see, we have less money and everything cost more in general (except milk and egg)

You're right in the decrease of buying power; but not in the cause. As I said, more people buying stuff at reasonable prices is more profitable than a few select rich buying really expensive stuff.

Siyano:

Also that now money value is based of nothing, back then it was based of the value of gold but in today economy, nothing, totally abstract, so how exactly does this work? So my money as no value and the what I can pay for it is based on nothing, rather than just an somewhat average of the highest I can possibly do.
I guess it doesnt make sense to me...

That's... really complicated. When the money's value stopped being based on gold, the general public barely noticed the difference, because they were used the same way than beforehand.

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