It is a marvelous thing to see the market work, in good times and bad. Just look at the way that marvelous, unplanned barometer of wise resource use — the price system — has reacted in response to the human reality of economic downturn.
As we prepare for the future with the holidays upon us, consumers are wondering whether it is a wise thing to take on too many new financial burdens. They are cutting back and still somewhat indecisive about the economic climate. For most people, the only real evidence of downturn they see is the devastation that has been wrought on their retirement accounts. This causes quite a psychological hesitation to buy.
What consumers need to spend is a solid inducement, one that coordinates financial responsibility with their material needs. And the retailers are there to provide it. Thus are prices being chopped from one end of the country to the other. Earrings that were $700 are now $250, purses that were $1000 are now $250, large-screen televisions that were $2000 are now $1,200, and suits that were $900 are going for $400. Deals are everywhere, from laptops to cell phones to cars. The street wisdom is that now is the time to buy.
Imagine if these prices were fixed by a central committee. FULL ARTICLE