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To: George Frm Br00klyn Park

Sorry I missed that one. Somewhere along the line, I mentioned how godgov's chosen undersell their competition many times in order to put them out of business. But, soon after the competition folds, godgov's chosen corporate "partners" without exception raise their prices to "recover their losses".

What the heck is godgov's? I suggest you sharpen you critical thinking skills. The example you gave, I read in another post of yours and shook my head then just as I'm shaking my head now. Why? Because either you didn't bother to think through your argument and where it may not hold up or you have a self-serving agenda in some form of income tax.

All companies that make the same generic product would see the cost to manufacture that product drop by the same amount. Those companies could all reduce their prices by that amount, say 25%. The company that chose not to drop their price by 25% would be out-competed by the companies that did lower their prices. It's just that simple. The companies that dropped their prices didn't put the lone hold-out company out of business. The hold-out company put itself out of business.

Also, which is really besides the point, I notice that you don't name any companies that have done what you claim. Nor do we read about that happening.

And then, to "whatever the market will bear." We see it daily with ballparks, race tracks, and adidas and wrangler. give me an example where the benevolent corporations reduced prices to benefit consumers. It is ALWAYS the bottom line of profit. I ain't buyin' it.

As the market operates right now it is whatever the market will bear. That will not change when a NRST is in place. If a company wants to remain competitive it will pass the cost savings on to the consumer. The first company that does that will cause a chain reaction and all other companies making the same generic product will pass the cost savings on to the consumer. Heck, a 25% cost savings is a huge advantage that a company has over its competitors -- the company could drop it's prices by 15%, out-compete its competitors while sill making more profit than before the 25% cost reduction -- but, but, but only when the competitors aren't also getting a 20% cost savings. Which obviously, with the NRST they would also be getting the 25% cost savings, thus negating any company from having a price advantage.

If you owned the business would you pass on the 25% cost savings to your customers? What if your competitors passed their 25% cost savings onto their customers, would you do the same to remain competitive?

80 posted on 04/16/2003 2:44:48 PM PDT by Zon
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To: Zon
"The company that chose not to drop their price by 25% would be out-competed by the companies that did lower their prices. It's just that simple."

Z, Or when the company cuts it's prices not because of "choice", but because of the necessity to "compete", they still go out of business. And, as I wrote before, the remaining company at that point RAISES prices to recoop their losses. when competition is eliminated, that is the way it works. "What the market will bear".
"What you been smokin'?" was began by the "I want some of what you and the author are smoking." comment by EEE.

If no one pays a tax on final use products except for folks who are unlicensed godgov approved corporations, the tax rate of 29% is WAY low. If farmers through bakers pay no taxes on their end use products {"tractors, ovens"} then why should harry homeowner? "Godgov" is an entity worshipped by MANY. Some call "him" "Big Brother" or some "Big Mama". I think you may recognize him/her. Peace and love, George.

97 posted on 04/17/2003 5:56:34 AM PDT by George Frm Br00klyn Park (FREEDOM!!!!!!!!!)
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