Skip to main content

Were Econ Cha-Cha Opponents Forced to Buy Luxury Products When They Have the FREEDOM to Buy More Affordable Products?

Do econ cha-cha opponents have no choice because FDIs "unfairly" own the means of production (read here)? There's always the tendency to say that they participate in capitalism because they have "no choice" but to participate in it to survive. The screenshot above is of Rosario Guzman of the IBON Foundation. They say that the business owners "unfairly" own the means of production (read here). The photo above makes me laugh because why in the world are they using a MacPro? I ask, "If you hate capitalism, why use Apple?" They have their usual rhetoric that it's because the workers should own the means of production as if workers were the ones who bought the equipment. It's as if the workers become the most liable for bad business decisions. One wrong check mark and the company may go south. Another question to fire is, "Did society force you to buy Apple products which you know for well, is rather expensive?" 

This may make one ask, "Did you think the expensive was always the best?" If so, they may think they can spread their message better with more expensive stuff. Investopedia also sheds light on why people are prone to buying luxury goods.

Are Higher-Priced Goods Really of Higher Quality?
One possible explanation for this is the human tendency to overemphasize the positive elements of a product and ignore its disadvantages. For example, in the case of Apple Inc. (AAPL), consumers wait overnight for new releases of iPhones, iPads, and Mac computers. This despite the fact that Apple products are not technologically unique or superior.

In fact, Samsung makes phones with better features (compared to most models of the iPhone), and Microsoft Corporation (MSFT) and Xiaomi make phones that typically have a cheaper price point. Nevertheless, Apple experiences a high degree of brand loyalty and seems to break sales records year after year.

Because some people perceive non-luxury goods as inferior simply by virtue of them being non-luxury (and not on the basis of their characteristics or qualities), they also come to the irrational conclusion that higher priced goods are of better quality. Contrary to the evidence, they may believe that you get what you pay for, regardless of whether the goods are actually better than their more affordable counterparts.

If they did better research on finances, they could buy laptops from Samsung and Xiaomi at a lower price. In the free market, there's the choice of whether one wants to buy an Apple product or if they want to buy the more affordable alternative. For example, I might buy the "Communist" Xiaomi phone over an iPhone for a lower price and better battery life. I might buy an HP laptop instead. They should've done some research on gadgets that cause. In finances, the principle is never to buy a bag worth USD 500.00 with nothing inside it. Instead, buy a USD 75.00 bag with PHP USD 425.00 on it. They had their free choice and it had consequences to follow. 

Their purchasing habits may prove their financial illiteracy. If one thinks that more expensive is always better--I can expect them not to know basic economics. That's why discussing economics with an overspender can be a futile exercise (read here). An overspender only knows how to spend--not how to budget. Even more ironic is overspending on imported luxury goods while supporting policies discouraging FDI (read here). The person can buy a Gucci bag, an iPhone, and all branded goods but goes to rally against FDI. When asked, "You hate FDI but why buy imported luxury stuff?" Again, if they say they're just forced to participate, were they forced to buy the iPhone, the MacPro, or the Gucci bag when they had a choice for more affordable goods--local or imported? 

They don't see the real beauty of the free market. In a free market, even in a Communist country like Vietnam, there's the choice between luxury goods and non-luxury goods. If I were in Vietnam, I could choose whether or not I'd like to eat gold-leaf steak or I could choose to eat more affordable steaks. I could choose to eat more affordable chocolates or high-class chocolates. Vietnam's current president To Lam ate a golden steak after laying flowers on Karl Marx's grave. To Lam could've chosen to eat at the Sichuan Restaurant instead of Salt Bae's Nusr-Et Steakhouse. Nobody forced To Lam to eat at Nur-Et Steakhouse. To Lam ate that golden steak of his own free will. 

I'm laughing at people who buy luxury products while saying they're just forced to participate in capitalism. It's not like capitalism doesn't give people a choice between different products under fair government regulations. I can buy a luxury or a non-luxury product because I have that choice. I can criticize capitalism under the Customer Protection Act or my right to review businesses. I can complain if a business establishment fails to meet the required safety standards. That's why we still need government to regulate all forms of economic activity. Even Communist countries like China and Vietnam can now enjoy the free market's choices to a certain extent. 

Popular posts from this blog

The Idiocy of Typing Anti-FDI Rants Using IMPORTED Devices, IMPORTED Platforms, and IMPORTED Social Media

Bulatlat It's very easy to open Facebook (or any related platform) and find lots of stupidity , right? There have been idiotic comments I find on Facebook such as FDI is this and that. We can find "thought leader groups" such as Alliance of Concerned Teachers, Anakpawis, Anakbayan, Bayan Muna, IBON Foundation, Kabataan Partylist, League of Filipino Students, and Philippine Anti-Fascist League (PH Antifa) who keep ranting about FDI as this and that. I even remember somebody dared to say that FDI caused Egypt to dry up. Ironically, North Korea and Venezuela, two protectionist countries, have very bad pollution problems. I'd blame it that they don't have the money to do a clean-up drive. How can you clean up a polluted river without the right equipment? How can you expect better power efficiency with outdated equipment that keep coughing up, cough, cough, lots of black smoke?  All the talks on social media can be very funny. The big irony is that all calls for "...

Get Stuck with EDSA, End Up Like Nokia

  Yes, we should never forget what history teaches us. A classmate of mine, back in high school, wrote a simple and blunt essay called "History: A Teacher". I doubt he still has a soft copy, given it was already more than 20 years ago. I'd like to quote Duterte critic Andrew James Masigan wrote this in  Philippine Star --something that should remain relevant: I would never undervalue the 1987 Constitution. It dismantled the legal framework of a repressive regime and established the democratic institutions we enjoy today. For this, I am grateful. The 1987 Constitution was crafted with the best of intentions. It sought to put the Filipino first in all aspects of governance and to level the playing field amongst sectors and peoples.  But it is far from perfect. It failed to consider the importance of foreign capital and technologies and the stiff competition we would have to face to obtain them. In short, its economic provisions were short-sighted . So despite the Constitut...

It's Incredibly Frustrating to Discuss Economics with an Overspender

Overspending is just bad economics, isn't it? Economics is defined as the following for the sake of a review of high school basics: Economics is a social science concerned with the production, distribution, and consumption of goods and services. It studies how individuals, businesses, governments, and nations make choices about how to allocate resources. Economics focuses on the actions of human beings, based on assumptions that humans act with rational behavior, seeking the most optimal level of benefit or utility. The building blocks of economics are the studies of labor and trade. Since there are many possible applications of human labor and many different ways to acquire resources, it is the task of economics to determine which methods yield the best results. Economics can generally be broken down into macroeconomics, which concentrates on the behavior of the economy as a whole, and microeconomics, which focuses on individual people and businesses. It had me thinking of 2016 wh...

[UNPOPULAR OPINION] Why People Power Anniversary Should Be a Special Working Day Instead

  As a blogger, I shouldn't turn on the PC in hopes of becoming popular . It should be to turn on the PC and blog to make a difference . Right now, I think about the controversy when President Ferdinand "Bongbong" R. Marcos Jr. declared the 1986 EDSA Revolution's anniversary as a working holiday . The call for some of the "minority lawmakers" is that they want to return the People Power Anniversary to a regular holiday once more. There are times I feel like, "Should we let it be a regular holiday again, so as not to repeat the Marcos dictatorship?" Sadly, the real answer is that the Philippines has been relying too much on EDSA , so it's practically ending up like Nokia . I was thinking about the reality of February being the most hectic month. February only has 28 days (and February 25 is near the month's end ). I thought that the Philippines also has too many national holidays more often than not. In fact, the Inquirer article written by...

Talking Economics with an Overeating Glutton

Two years ago, I wrote an entry about why discussing economics with an overspender is frustrating . Now, I was looking at certain fat people who say really dumb things about economics. Just recently, I was looking at a certain fat idiot (fortunately, he only has 1K+ followers) who posted on Facebook that not only will the parliamentary system cause the Philippines to become a dictatorship, but he also says that changing economic provisions will cause the Philippines to collapse and the country to fall into the hands of foreigners. I won't name the person out to avoid getting personal. However, the person is apparently very fat and he blames capitalism day in and day out. The person even says that businessmen do nothing and it's the employers that do everything. Has that fat slob ever heard that businesses are run by bosses and that if the bosses do screw up, they're the ones who are the most answerable? The employees are the cogs and the boss runs the cogs. I was looking at...