Recently, many companies have made certain negative practices popular in the United States and other parts of the world. An example is “deflationary inflation,” which means finding discounted goods on market shelves while maintaining the price.
Another trend is “inflationary miserliness,” which refers to the loss of quality of products and services without adjusting their prices. The head of economic education at the Federal Reserve Bank of St. Louis, Scott Wola, explained these measures.
The value of raw materials rises due to inflation and companies reduce their spending on services to maintain profits. However, those who lose out are consumers and workers, as “inflationary parsimony” is also applied in reducing the labor force.
Examples in different spaces
In 2021, users filed complaints with Disney, because after the Corona virus, the tram service in the parks was not restored. This company began resuming its obligations based on customer complaints.
Customers don’t spot these problems easily, said Joseph Balagtas, a professor of agricultural economics at Purdue University. Mr. Belgas commented on grocery stores, where it has become common for shoppers to package purchased goods.
Furthermore, “inflationary parsimony” replaces expensive, higher-quality components with cheaper, lower-cost components, but maintains or raises prices. In restaurants, staff shortages lead to delayed service.
Tourism is not exempt from these bad habits, and the prices in hotels do not differ, except that room cleaning is limited. Specialists Wala and Balaghas advise citizens to compare market prices to discover brands that are carrying out deceptive operations.
There are companies that care about their reputation and do not reduce efforts or resources to provide the optimal product to people. These options may be more expensive for consumers, but are beneficial for competition between companies.
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