Economic debates on Audiogon amuse me. It reminds me of the Yogi Berra quote “nobody goes there any more, its too crowded”.
When demand outstrips supply, prices rise. While it isn’t quite that simple, its darn close. When certain wages rise (which everyone logically could agree was long overdue) prices rise. Real wages were virtually flat for decades. Demand for raw materials has risen…so have prices. Availability of new items has constricted so natuarally prices of preowned items have risen as well. The ham radio guys whined when their inexpensive tube supplies began to dry up because of the increase in tube audio gear sales created competition. More people interested, more demand.
What we really have here is when groups fall behind their perceived rightful place economically, they begin to complain and declare the game is rigged. Its more likely than not a disconnect in what some people believe they deserve vs the fact that no one deserves anything except the fair opportunity to succeed and get ahead. Everyone has decisions to make. For instance, it wasnt too long ago when “luxuries” like telephone, cable, a car, air conditioning….a stereo or television were not considered necessities. Somehow these items and more became a right. Remember when eating out was considered a special treat? Remember when “earning” the privilege of a credit card required work?
I don’t mean any disrespect to anyone but the idea of going in to debt to acquire a pair of speakers (or any luxury purchase) is pretty darn close to irresponsible. Not saving for retirement and a rainy day fund? Not buying life or health insurance? Who couldnt do the math that when real rates of return on savings were at or near zero that that circumstance required more savings for your future to maintain a certain standard of living? Who really thought that shifting from defined benefit retirement plans to defined contribution plans was better? If you are beyond a certain age and utilize debt to “keep up with the Joneses” you are making catasrophic decisions for your future. Whatever happened to aspiring toward a goal rather than whining about not having soming something? Whatever happened to a responsible adult seeing something that to them is overpriced just moving along…the only cure for irrationally overpriced goods are irrationally overpriced goods? If no one buys them, prices will drop until they find a buyer. The real challenge though is to be honest with ourselves when we something that to us is outrageously overpriced sell like hotcakes. So, are we the sane person in a crazy world or are we the crazy person in a sane world?
So, if someone with a $100k system doesn’t care about the price of their system or resale prices, who’s right? Maybe they sacrificed, made some good choices, got lucky….whatever the reason…Maybe their time is worth more than fretting over a few grand here or there. If you happen to be young enough to secure your financial future, make those decisions. If your stereo is a considerable part of your net worth, maybe you should reevaluate your “asset allocation”.
