Posted by mb58 on November 17, 2015 at 07:23:07 from (192.234.241.146):
In Reply to: New Steel Prices posted by Spudm on November 16, 2015 at 10:49:58:
It is a fact that falling retail prices are great for the consumer, but if you read statements issued by economist (especially those employed by the government)you will find that they say that declining prices are a manufacturer/wholesalers worst night mare. Reason being-when prices start to fall, people stop buying. They put off buying to see how low a product will go. This leads to a glut of the product and no money changing hands, leaving the seller holding his product. Consequently, the wholesalers will hold the price up until they die, rather than reduce the price and take a chance on deflation setting in. Fuel, of course , being one exception since people have to have gas. I"m sure not an economist. I"m just repeating what I"ve read.
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